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How Technology will Disrupt the Mortgage Industry

Banking CIO Outlook | Tuesday, May 04, 2021

The tech industry was ready to adapt, with systems like document processing, data verification, and remote notarization designed to maximize effectiveness in the face of adversity.

Fremont, CA: In today's online marketplace, specialized technology is the secret to attracting customers and increasing productivity, all of which can make or break a company's bottom line. So, what new mortgage technology keys will be available in 2021? How will your company use them to capitalize on market opportunities in the future?

Accelerated Tech Requirements

The 2020 pandemic forced the mortgage industry into a new period of technology born of need. On the first day and integrated user interface technologies had been simmering in the background for some time, but work-from-home mandates pushed these skills to the forefront for many mortgage professionals.

Prior to the COVID outbreak, some firms were hesitant to invest in technological advancements; however, most lenders now understand the need to provide online mortgage solutions. In short, these offerings are becoming table stakes for appealing to the socially diverse borrower and empowering their socially diverse workforce. Loan originations hit an all-time high in 2020, with refinanced loans worth twice as much as in 2019, all in an atmosphere where people couldn't meet face-to-face. This reality served as the backdrop for accelerated technological requirements.

To meet unprecedented demand in an uncommon setting, mortgage companies relied heavily on technologies designed to minimize borrower uncertainty while still the lender support, all while managing the very real risks of a market change. The tech industry was ready to adapt, with systems like document processing, data verification, and remote notarization designed to maximize effectiveness in the face of adversity.

Starting with the technological revolution of 2020, mortgage professionals should expect technological advancements at both the point of sale (POS) and the back-office support end. Maintaining a healthy bottom line in the coming years will be dependent on emerging technology that meets needs at every point of the loan origination process.

Improved Digital Borrower Experiences

After the country's closure in March 2020, Americans have grown accustomed to doing almost anything online or via an app. Digital services that were once optional are now required in almost every industry, including the mortgage industry.

Let's face it: borrowers are anxious when they come to lenders. They are nervous about making a large purchase, about sharing their details, about deadlines, and about decoding their options. Essentially, they are afraid of making a decision that would cost them more money than necessary.

Technology can help calm those nerves, particularly for millennial or Generation Z borrowers who are used to consuming information and communicating with others online. According to the National Association of Realtors, millennials accounted for the majority of homebuyers in 2019, accounting for 37 percent of all home purchases, making it critical for mortgage lenders to appeal to these buyers.

 

See Also :Top Mortgage Technology Solution Companies

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