The $2 Trillion mortgage market is expected to be back in its full swing very soon. A lot has already changed on these lines, as all-time low rates of mortgages have significantly helped in boosting customer confidence. Real estate is one of the biggest reasons why mortgages have soared recently and are expected to touch their maximum in last 10 years. A lot has changed in last 10 years and the market today is more dynamic than it has ever been.
There is a serious need of keeping track of trends going on in the industry in order to be well equipped and up-to-date for offering world class mortgage lending services. Governments have also been rolling out pro-mortgage programs for fostering these services in the finance sector. Not only from the customer’s perspective, but it is also critical to be technologically well advanced in order to overcome many issues that lenders encounter on day to day basis. Mortgage technology has gone through major overhaul in last few years. Let us take a look at some of the trends doing rounds today in the industry and how they will affect the industry on the whole.
- Online loan approvals—This is the biggest trend in mortgage industry at present, and why not! Customers not only get to apply for loans while on the move but it also requires almost no paper work. The icing on the cake is instant disbursement of funds, within few minutes in many cases. What a loan origination software does is, take enough data from the customers through their digital devices like smartphones, computers, tabs, etc. and run an automated check on what type of loans or mortgages the customers are eligible for. This saves a lot of time on both lender’s and borrower’s part.
- eMortgage using eNote– This is nothing but another name of online mortgage technology solutions offered by many financial institutions. Instead of actual currency, eNotes are used for the entire process. Right from applying for mortgage or loan, to checking eligibility, to raising concerns, to closings and finally to disbursement, everything happens on Internet. Unlike earlier, many credit unions and banks are warming up to a completely digitized mortgage process for their customers, thus not only helping the customers but also reducing their own overheads. It is just a matter of time when we will see almost every lender out there embracing these mortgage technology solutions.
- Need for reduced closing time– This is going to be a big yardstick for consumers to decide which lender they should go with. No customer likes to wait for days together to get a simple loan or run from one department to another clueless wanting to get his mortgage funds on time. Of course, mortgage servicing software has successfully reduced this age old pain of loan processing to a great extent but now the competition is likely to get stiff. It might soon be all about how fast a lender helps its customers with the process and the eventual fund disbursement. This means businesses now need to be equipped with the most potent of the software for mortgage origination, that are not only accurate but super-fast as well.
- Increasing acceptance of mortgage technology– Thankfully this trend is very much in and gaining more popularity. In fact, the only thing that is stopping complete digitization of mortgage industry is resistance coming from the industry itself. Many experts are scared of the risks involved, while others are not sure if software can get the job done of a human. But things are changing and it should not take more than few months or a couple of years before the industry completely accepts mortgage software solutions and many advantages associated with them.
It will be interesting to see how the technology around mortgage origination evolves one step at a time and brings in newer trends in the market. The way things have been moving, we might soon have banks with complete automation of loan and mortgage processing.
Preethi vagadia is a business architect worked in Mortgage and Finance software department with top notch companies and has over 8 years of experience in Mortgage Lending Technology and mortgage software management.