In the regulated loan and mortgage industry there is much hue and cry about automated software that can provide seamless services to the customers while benefiting the lenders at the same time. Many industry experts feel that if the finance industry warms up to technology in a full-fledged manner in near future, then there might come a time where there won’t be any executives working at banks and credit unions as loan originators.
Let us try to understand if this is actually going to be the case; if yes, then for the better or for the worse! A plethora of apps, software, and websites have entered mortgage market and have made quite a splash in last few years. Since these technological tools are cost-effective and save a lot of money to the lenders, they are more than willing to integrate more and more of automated solutions to improve their overall transparency and effectiveness with the existing and new customers. With the picture of mortgage industry changing due to ever dynamic technological advancements, are we soon going to be done with the role of a human loan or mortgage originator?
Software or originator? The big question
So the big question doing the rounds is over replacement of human loan originators by loan origination software. Well, the answer is a big no! Mortgages and loans are some of the most complex financial instruments and customers do need hand-holding and guidance at all times; in other words, the customers need an executive to talk to and seek guidance. We are not saying loan originators are more effective than software but we are saying software alone can’t do the job and neither can loan originators in this fast paced market. The right solution for the customers, lenders, and the industry on the whole would be the combination of mortgage servicing software and a mortgage originator.
Mortgage professionals cannot afford to continue doing their job just like old times. In order to be competent they must be equipped with mortgage technology.
Why technology must be embraced
The so called big question in this write up shouldn’t be at all in the first place. Rather, the big question should be why and how originators should embrace mortgage technology solutions. Technology has changed almost everything around us, and for the better. So, it is only natural that it would make the loan origination process more seamless and efficient for both borrowers and the lenders. It has been proved time and again how these software are optimizing the whole process of lending.
Recently, many institutions have recorded their fastest closing times without any errors. The credit obviously goes to the lightning fast and accurate loan lending technologies.
Key applications in a loan software
There are many applications within a mortgage servicing software that make the tool so effective. To begin with, the pre-approval tool is an absolute favorite. It almost ensures an instant loan disbursement in most of the cases. This tool captures the basic data of borrowers and gives them an offer on the kinds of mortgages the borrowers qualify for. Another feature of these software that make them popular with borrowers is the ease-of-use. It is important for the lenders to ensure that their borrowers clearly as well as very easily understand what they are getting and how they are getting. It is equally important to acknowledge that these tools like software and apps are the first level interaction a potential borrower has with the lender and a good experience can get them intrigued about the company.
The future of finance lending industry is largely dependent on the technological growth that we are seeing and there is no way the industry can turn its face the other side if they are looking to scale up. Mortgage origination software solutions when teamed with mortgage originators can offer impeccable services to the borrowers making their life easy and turning them into a happy client.
