In about two and a half months, Santa will come to town, and his elves will deliver presents. All that lenders in the mortgage industry have asked for is a technological solution that will solve their problems, and meet their needs; instead, they’re getting headaches and disgruntled phone calls.
The relationship between mortgage lenders and technology is often one of love and hate – and that’s frequently the result of lenders who believe three common misrepresentations about mortgage technology. Listed below are ways to steer clear of these myths.
1. Implementation will go smoothly. Technological implementation almost never goes smoothly. In fact, according to HousingWire.com, “in a recent Stratmor Group survey of lenders, it still takes everyone 12 months to completely convert to a new loan origination system. As well, only 28% of mortgage lenders claimed they were “very satisfied” with their LOS.” Oftentimes, when the implementation does not go as expected, the results are often costly, time-consuming, and require more work for the loan originators. HousingWire sugge
2. Digital mortgages will fix mistakes. While a digital mortgage experience has the potential to reduce expenditures and improve accuracy, verifying the provided information and validating the data entered is not as simple. HousingWire mentioned the loan process stating, “Lenders that focus solely on improving how their customers apply for loans without delivering an end-to-end experience by enhancing internal processes will undoubtedly fail to get the digital mortgage returns they were looking for.”
3. Automation is no different than other automation. To the contrary, automation is very different by way of operational functions; functions such as automating standard tasks, populating a form, and incorporating compliance checks through a rules-based architecture that considers the lender’s lending overlays, industry best practices, and investor guidelines. HousingWire sugges