The Evolution of Tech Trends in the Mortgage Industry

by Tomi Pironti

Just a few short years ago, mortgage processing relied heavily on physical document collection and in-person interactions. This made closing on a home a time-consuming and inefficient experience. With no better options available, clients and loan officers just accepted this inefficiency as “part of the process.” 

However, consumer expectations have changed. The modern home buyer is much more open to a tech-centered mortgage processing experience. In fact, many of them actually prefer self-service and digital communication.

If you want to exceed customer expectations and stay relevant, then you must adopt these trends. But you might not be sure where to begin.

Below, we’ll take a look at what kicked off this shift in the mortgage industry. We’ll also outline the tech trends that are on the rise in 2021. 

By implementing these new tools into your business model, you can revolutionize the way you process mortgages.

What Happened?

Over the last decade or so, countless industries have shifted towards a digital buying experience. Many experts affectionately call this the “Amazon Effect.” The digital retail trailblazer disrupted traditional retail practices. It allows consumers to purchase products online and receive them just a few short days later.

The Amazon Effect has unavoidably impacted the mortgage industry, as well. Modern home buyers now expect:

Instant Gratification

Perhaps the biggest impact of the Amazon Effect is that buyers expect instant gratification. Unfortunately, even the best loan officers cannot close on a mortgage overnight. Gathering the necessary financial documents and processing the application takes time.

With that being said, consumers need some sort of rapid feedback. By incorporating modern tech tools into your business model, you can fill that need. Every time a client signs a document or submits requested information, you can send them a notification. This allows you to keep the customer happy and information while you’re processing their mortgage.

The Ability to Serve Themselves

Consumers also have an increased desire to engage in self-service. While they do not want to process the mortgage all on their own, they do want to feel involved. As you will see below, many modern tech trends are geared towards self-service.

Your software should allow clients to submit documents, check on their loan status, and message their loan officer. Prospective customers should also be able to readily access information regarding the loan process in general. This can include information about current loan rates and a breakdown of each mortgage type.

Trends on the Rise in 2021

Now that you know how the shift started, let’s take a look at trends on the rise in 2021. Many of these tech trends have already been adopted on a wide scale. However, they are poised to affect an even larger part of the market in the coming year. Companies that successfully leverage technology will set themselves up for sustainable growth.

If you have been searching for a way to take your brokerage to the next level, these tech trends might be just what you are looking for.

The Mortgage Processing is Going Digital

For the last few years, digital listing sites have been taking over the home buying market. Clients can easily search for properties and access resources to help them make a purchase. 

The rest of the mortgage ecosystem is finally catching up. With the right technology, almost everything can be handled digitally. Loan officers can process online 1003s, manage documents, and send updates to buyers via SMS. Many mortgage brokerages are even transitioning to digital or hybrid closings.  

If you are a loan officer, you can join the evolution, too. You can either build your own digital processes from the ground up or partner with a high-quality CRM provider.

Companies like BNTouch have already done the heavy lifting. Our CRM software gives you all the tools needed to process mortgages digitally. Our tech focuses on providing a great customer experience from start to finish.

An Increased Emphasis on Self-Service

Take a look at any of the nationwide lenders’ mortgage websites. You will notice a common theme:  The ability to engage in self-service. These companies understand that modern consumers need instant feedback and want to help themselves.

In 2021, even more, mortgage brokers will incorporate self-service into their existing sites. We recommend that you do the same.

Ask yourself:  Can customers readily access your portfolio or products? If not, then your self-service capabilities are due for an upgrade

A curious consumer should be able to navigate to your site and quickly interact with your products. This may include taking actions such as:

  • Completing a contact form
  • Filling out a loan application
  • Checking on the status of a loan
  • Logging into their account (existing clients)
  • Viewing the most recent mortgage rates
  • Finding information about various loan types
  • Submitting requested documents

Self-service also frees up your staff to focus on other projects. It reduces costs and improves customer acquisition rates. 

A small note of caution:  While customers appreciate the ability to self-serve, make sure that they can reach someone when needed. Overly automated services can diminish the consumer experience.

Automated Data Collection

As any loan officer will tell you, collecting client data and backfilling a 1003 form is tedious. It can slow down the entire mortgage process and take your team away from other valuable tasks. This also creates plenty of room for error.

Thanks to single-source validation, this process can be streamlined. Single-source validation allows your mortgage brokers to import data from the IRS or other financial institutions with a few clicks. This data is automatically filled into a 1003 form, letting your team submit applications faster. The best part is that it drastically reduces the chances of a filing error.

If your team is still collecting client data manually, then it is time to up your game. Digitize your mortgage processing practices and gain access to valuable data import tools. Your loan officers and clients will thank you for it!

Streamlined Lead Distribution

Modern technology is not just about improving the user experience. It also allows mortgage brokers to track key performance metrics. The top brokerages analyze employee data to maximize performance and distribute leads. With the right technology, you can, too.

Top CRM software includes integrated lead distribution platforms. These platforms allow you to receive leads and distribute them automatically. You can even integrate it with your current lead provider. While you are at it, you can track team performance and optimize productivity. This can help to ensure that your employees are well equipped to meet the needs of the clients they serve.

A Focus on Mobile Compatibility

Another significant tech trend in the mortgage industry is a shift towards a mobile-first business model. Many mortgage brokerages initially focused on PC compatibility and added mobile tools as an afterthought. Some did not give mobile users any consideration at all. This approach is simply not sustainable.

When you’re transitioning to a digitized mortgage processing strategy, you must focus on mobile users. The majority of your clients will access your tools via their phones or tablets. Some may exclusively use mobile devices during the mortgage process.

What better way to focus on mobile compatibility than with an app? When you’re searching for a CRM software provider, make sure that tech tools include an integrated mobile app. This will let you know that they have a mobile-first attitude.

Once a client partners with you to handle their mortgage, simply ask them to download the app. You and your team will easily be able to send them alerts, request information, or take other steps to speed up the mortgage process.

More Efficient Team Collaboration

Maintaining open lines of communication as you’re processing a mortgage can be quite challenging. Buying a home involves a lot of moving parts and everyone has unique communication methods that they prefer to use.

In order to address this issue, many mortgage brokers are transitioning to team collaboration software. This technology allows lenders, borrowers, and realtors to communicate on a single platform. It eliminates the need to play endless games of “phone tag” or send countless emails.

With the right software, every member of your team will be able to stay connected. They can work on the same files, share notes, and more. Your clients can even open their mobile app and check on the current status of their files. This means that you will no longer have to field phone calls to answer questions about the status of a mortgage.

Modernizing Your Mortgage Processing Capabilities

As you can see, modern tech trends are changing the ways that brokers process mortgages. Every aspect of the home buying experience is going digital. If you want to get in on the action, then you will need the right CRM software. That’s where we come in!

BNTouch offers cutting-edge CRM software for loan officers and brokers. We have scalable solutions for businesses of all sizes. Whether you are working solo or are managing a large-scale operation, our tech tools can help your business to grow.

But don’t just take our word for it. See for yourself by scheduling a free demo. Once you try our innovative CRM software, you will never want to do business without it. Contact us today to learn more about this exciting opportunity to expand your business!

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Tomi Pironti
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