Digital lending is certainly one of our industry’s hottest topics these days. You can’t read a trade publication without seeing an article about how important it is. And PCLender can help move you to a digital lending process, either all the way there or part way, depending on your preference. We can support you every step of the way as you work to offer your borrowers an almost completely online experience.
So, will 2017 be The Year of Digital Mortgage Lending? We can certainly expect to see far greater adoption, as upcoming generations—particularly Millennials–use digital capabilities to make obtaining a mortgage fit their preferences. And, with Fannie Mae and Freddie Mac embracing technology, lenders now have even more incentive to go digital.
Many wonder whether an online presence will replace the human interaction between loan officers and borrowers. It’s not likely. Loan officers will still be needed as borrowers appreciate human contact for what can be an intimidating process. But having the digital aspects to enhance the efforts–and productivity–of live loan specialists is as desirable as it is inevitable.
To establish an effective strategy, lenders need to understand the components and objectives of a good, operational plan. Planning should also include integrating the tasks and processes to streamline the lender’s operations once the loan has been originated.
PCLender: One of the Few
Late last year, STRATMOR Insights published a very interesting article from Len Tichy about the past and future state of mortgage technology. He included the following thoughts regarding digital lending and loan origination system (LOS) providers:
“Unfortunately, almost all of the components of Digital Lending are currently housed in specialized digital applications that need to be hooked up to the LOS system. And few lenders, if any, have enough specialized internal IT resources to meet the daunting work of keeping a dozen or so apps robustly working in synch as one. A solution, of course, would be for LOS vendors themselves to build Digital Lending functionalities or applications into their LOS offerings. But few LOS vendors have either the talent or financial resources to make this happen.”
The good news: PCLender is one of the few LOS providers that possess both the talent and the resources to make digital lending a reality for its clients. And we have what it takes right now. Here’s a brief list of what you’ll need:
Key Online Tools You’ll Need
- Interactive tools should include a short inquiry form, a complete loan application form and a borrower portal that allows them to collaborate with the lender and receive updates on their status. These tools must have great user interfaces, be mobile-friendly, and dynamically support borrowers during the application process with clarity and simplicity.
- A single point of access and one set of login credentials combines with sophisticated, agency-consistent document recognition technology to streamline the inquiry and processing requirements, AUS findings, and agency-approved vendor inputs.
- Integrated vendors will provide verifications of identity, credit, assets, income and employment, as well as relevant property data.
- Complete support for borrower communications and collaborative activities with lenders are needed. It all starts with applications and product selection, with loan status the prevalent ongoing concern. But streamlining borrower file documentation, delivering disclosures, coordinating closings and tracking communications among all parties are just as necessary – not only for borrower satisfaction but for regulatory compliance.
- Workflow integration and best practices are neither last nor least. Lenders need all of these features and tools, but if the workflow isn’t completely integrated and sensible for a digital experience, the entire process loses its luster. The LOS should be preconfigured with workflow best practices so that the lender can make adjustments to precisely fit its procedures rather than reinventing the wheel.
PCLender has what it takes – today.
Digital lending is upon us, and with our help, you can be ahead of the game. We can bring you as much sophistication as you desire to get you part of the way there, or all of the way there, depending on your preference.
2017 promises to be a banner year in terms of purchase volume and in the wave of newcomers to homeownership, many of whom will want digital experiences. We can help you make it happen – and here’s a guarantee: it will be far easier than you think!