Humanizing the Mortgage Business for Improved Customer Experience

Banking CIO Outlook | Wednesday, July 13, 2022

The lenders who adapt their processes, technologies, and go-to-market teams over time will be the next success stories in the mortgage industry.

Fremont, CA: Mortgage lenders are under more pressure than seen in decades. Low-interest rates have spurred a refinance boom, and the epidemic has caused a surge in property purchases and prices. Lenders must manage acquisitions with new, well-funded mortgage fintechs on their heels as the industry shifts. Humanizing the mortgage industry is a growth-driving approach for lenders.

Loan officer retention tools

In the next few months, mortgage industry experts anticipate a drop in profit margins as lenders compete in a rising-rate environment. As margins contract, loan officer commissions tend to decrease, and they seek new work. Loan officers' choice of employer is influenced by remuneration, but other criteria, like the extent to which they are supported in achieving success play a much larger role. Loan officer success is intimately related to technology, especially technology that creates clients for life and automates value-adding actions.

Lenders assist loan officers in pursuing cash-out refinances by utilizing technology to search for people with access to equity, a credit score within the average range, and a rate above the market. The lender's technology engages borrowers, measures their level of interest, and alerts loan officers when they are ready to speak.

Obtaining referrals from realtors and builders

Realtors and builders exert considerable influence on the lender a borrower selects. Since they bring transactions to the table, realtors have always held the upper hand in referral relationships. During the loan procedure, however, lenders may often merely offer free lunches or take care of a realtor's client.

Now, technology can automate compliance co-branding and drastically minimize the amount of time required to initiate a new collaboration, create and publish co-branded marketing creative, and generate referrals. Ease-to-value becomes the glue that binds these two crucial individuals for mortgage lenders' companies.

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