to drive pre-approvals and accelerate the
front-end of the process, borrowers are
still — on average — looking at 45 days
from application to closing.
In cases involving new construction
and loan refinances, the infrastructure
generally already exists to reduce that
time frame to around 10 days. Consider
for a moment what that would mean
in terms of operational efficiency and
profitability for lenders to be able to go
from application to closing on all mortgages in less than two weeks.
Even though the infrastructure and
technology exists now, it will take time
for originators to evolve and include
these practices into their everyday
workflow. It is a cultural shift for origi-
nators who have historically employed
a certain workflow for many years — to
essentially reinvent how they engage
with borrowers, and how their existing
staff needs to utilize new technology
and tools that can give them the effi-
ciency to make a 10-day close possible.
Here’s another story about what the
mortgage industry could be. John P.
Consumer finds the home of his dreams
and wants to purchase it before someone else realizes it’s the home of their
dreams. Therefore, John goes online to
apply for a mortgage loan.
Instead of John spending hours literally filling out more than a hundred
fields of information, and uploading
paystubs, bank statements and tax
documents, a more efficient digital
process could be implemented that
would take him less than 20 minutes
to get approved for a mortgage loan.
John is smart and reflective of today’s
buyer. The call to action here is for the
mortgage industry to match the convenience borrowers are already experiencing in other areas of their lives.
Now think about what the ideal originator experience might look like. John
chooses to work with an innovative
originator with a modern online application process. The mortgage company
uses workflow advances and potential
new government-sponsored enterprise
programs to make John’s application
experience as frictionless as possible.
The company can underwrite his mortgage loan and get it ready to close in
48 hours or less, effectively meeting —
and perhaps even exceeding — John’s
n n n
For generations, the mortgage industry has painted the picture of homeownership as the foundation of the
American Dream, but increasingly, the
home-purchase preferences of savvy,
technology-empowered borrowers are
mandating convenience and speed as a
key component of pursuing that dream.
Across multiple industries, buyers are
now making purchase decisions based
more on ease-of-use and quality of the
experience than brand loyalty. For those
borrowers who are accustomed to instant access and gratification through
their mobile devices, taking 45 days to
close on the purchase of a home may
represent an eternity. They can — and
will — seek out better options. Those
lenders who are able to capitalize on
meeting those expectations will be the
mortgage industry’s game changers
of tomorrow. n
<< Domino continued from Page 36 “The purchase preferences of savvy,
are mandating convenience and
speed as a key component.”