The Mortgage Lending Process is Experiencing a Revolution. Are You Ready?

The past several years have seen digital transformation revolutionize consumer choice across virtually every industry. And in many cases, that choice has anointed new victors, such as Netflix, AirBNB, Uber, and left many vanquished or significantly diminished.  The speed at which the transformation can occur is truly astounding. Did Netflix become the world’s largest movie house overnight. No. But it was fast. So while the Blockbusters of the world probably felt safe in their niche and in their dominance, clearly they weren’t.  There is no better time to be paranoid about what innovation or what organization may displace you. But there’s also no better time to feel tremendous optimism in your ability to adopt a digital or bust mentality and win in your market. No industry is immune.

Mortgage lending is no different. The digital mortgage seems to be the dominant conversation, and rightfully so. Consumers have many choices – the typical local mortgage lenders, mortgage brokers, banks and credit unions that can all meet their needs. But they also have online digital lenders who can provide a mortgage. Out of the thousands of lenders, consumers are able to make their choice based on their situation, reviews and referrals of people they trust, and any other demands they may have. They can educate themselves before ever involving the lender or the bank and they are increasingly turning to online, digital solutions to both become better educated in their choice, as well as to meet their needs.  They are more empowered.

This era of consumer empowerment has swelled into a revolution. Lenders not only compete in their regional markets, but have to compete more and more digitally when it comes to their tools and customer experiences.  And the competition is getting fierce, as it can seemingly come from anyone and everyone.

If customers get simple and pleasing experiences from Uber, Airbnb, food takeout or online bank accounts then they’ll expect it in their mortgage process as well. The hot new thing in any app becomes standard fare across the board faster than ever before and makes the status quo seem even more antiquated.

Delighting customers means finding ways to deliver the experience they want alongside the product they desire — a mortgage. To keep pace it isn’t enough to flip a switch from manual, paper processes to digital ones. It requires continuous, consumer-centric innovation. You either need to be pushing forward with consumers or risk getting passed by.

Finicity offers a path to digital transformation, but more importantly to continuous, consumer-centric innovation. Through our digital verification solutions you can provide your borrowers a simple, fast verification experience that doesn’t require paper or PDF bank statements to be shuffled back and forth. Delays for paperwork or waiting on extra documents are a thing of the past.

Our verification reports also include rep and warrant relief from the GSEs. Check out our announcement with Freddie Mac here.

We provide digital access to consumer-permissioned data that can be used throughout the life of a loan, whether that’s pre-qualification, verification, servicing, or even in other lending verticals.

But providing digital processes isn’t enough. We don’t want to get you from manual to automated processes or simply paper to digital verification. We want to start innovating your origination process to the point you’re pushing us for further innovations in our offerings. Consumers are already demanding the same thing and we’re running fast to meet and exceed their expectations.

Find out where you’re at when it comes to being ready for pushing digital innovation forward with our Digital Readiness Assessment. This is a fun and fast view of where you’re at, but it hopefully inspires you to move forward – fast – with your digital plans.

Joining the continuous, consumer-centric revolution can lead to a lot of positives. Digital lenders have been consistently growing over the past 6 years. Averaging 30% annual growth, they have quadrupled their market share and are continuing to carve out space in the market for their mortgage solutions (The Role of Technology in Mortgage Lending). Online tools have empowered consumers to investigate their mortgage options just as easily from their home as from the local bank’s branch. Ellie Mae found the first choice lender for many people is the one referred to them by a friend or family member who had a great experience. Not the one with the lowest rate or the closest branch. Their second choice was whoever they found in an online search (Ellie Mae Borrower Insights Survey 2018).

Consumers want their mortgage origination personalized or at least customizable. Borrowers can self-select mortgage types or other details to create the perfect mortgage for them. Lenders can provide tools to make the process exactly what the customer expects changing notification type and frequency, detailed or simplistic origination flows, self-service or guided processes and high or low touch interactions.

The mortgage lending process is still people driven.  It’s a major investment, and customers want someone to help them. So it’s not about replacing people, it’s about delivering a superior experience that will make you more productive and more profitable.

Today’s mortgage process is easier to get through for a consumer than it has ever been. It will only increase in simplicity and speed moving forward. On top of delivering a beneficial customer experience, digital solutions also make it easier to continue to test and innovate your process to find what works for your consumers and meet their expectations head on.

Consumer-centric innovation based on digitization will continue to transform the mortgage industry to fulfil the demands of consumers. Joining the revolution requires the tools to keep up.

Are you ready?