Heavy paper-work, several compliance visits, verification calls, and multiple resubmissions can make the mortgage process a harrowing experience for borrowers. So Finance experts like Abacus Finance have come up with a solution that is E-mortgage ,which will solve all the problems of heavy paperwork.
The mortgage industry seems gravely untouched by the advantages of technological advancement. Even today, a major chunk of the mortgage community is resorting to cumbersome means of collecting data, filing mortgage formalities, and closing loans. These obsolete processes are bottlenecks in the entire mortgage cycle and are simply adding to consumers’ dissatisfaction.
Some mortgage lenders are still hesitant about adopting a paperless process. And those who are using technology have embraced it in a fragmented manner. Segments are being completed in silos with no seamless workflow. For example, lenders finish certain processes electronically but then convert to paper-based processes. What seems to be missing is an integrated end-to-end strategy that seamlessly and digitally connects all siloes in the process, putting an end to all paper-based processes.
How tech experts are approaching the problem
It is important to understand that while regulations put pressure on banks, there emerges a demand for technology or process that can ease the burden. But the question is whether that demand will be met.
Emerging business technologies offer the capability to customize messages, help banks with compliance, and meet customer expectations cost effectively. However, tech experts believe that fetching such benefits becomes easier with holistic implementation of electronic processes. Selective implementation will only lead to partial and short-term advantages which fizz out much before customers begin to take notice of the new amenities.
Reaping the benefits
In order to close tiresome, repetitive processes quickly, and also to increase the number of registered loans, lenders need to adopt a technologically invasive strategy. The community needs to develop paperless capabilities where all processes, right from application to closing are linked to each other digitally. The industry needs to focus on e-mortgage tools that provide end-to-end digital process for closing loans.
E-mortgage will soon disrupt the mortgage industry. Here is a spectrum of advantages that e-mortgage solutions can deliver:
- A differentiator: Most of the mortgage origination and completion cycles are time consuming, leading to underutilization of valuable resources. Consumers today are accustomed to exceptional brand experience. Cumbersome loan processes do not satisfy them. Lenders who offer a digitized experience will be able to differentiate themselves in the marketplace and that will make a mark for itself.
- More control: With strict regulatory compliances being levied, paper-intensive processes are prone to errors. E-mortgage software can automate control, testing, and reporting, leading to fewer errors and better service quality.
- Overall expenses: By leveraging e-mortgage technologies, companies can break away from paper-intensive, slow, and fragmented processes, and move towards a more streamlined experience. It will enable huge reduction in unnecessary operational expenses and other costs.
A boon for borrowers & lenders
A survey found 85 percent consumers wanting the mortgage cycle to be extremely quick. Currently, as compared to other industries, the mortgage processing cycle is painfully slow. Today’s consumers look out for transparency, ease of use, and real-time information. They are accustomed to a digital way of doing things. E-mortgage is the answer. By leveraging a digital mortgage structure, companies can reap the benefits of automation, differentiate themselves in the market, delight consumers, and ultimately increase their ROIs. Obviously, early adopters will have a distinct advantage over others.
The path to competitive lending is fast changing and it is equally about good deals and good customer service. Although there lies a challenge in convincing everybody at the same time, a cloud-based technological solution might be holding the key to widespread adoption of e-mortgage as a trend.