Based on today’s heavily regulated mortgage industry, financial institutions are re-evaluating their key goals and strategies to ensure they are not only meeting the latest compliance guidelines, but also doing so in the most cost effective way possible. While each institution is unique and shares different goals, the overarching theme for mortgage improvement across the industry points to increased efficiency and improving customer experience as the leading goals institutions are working toward.
For the mortgage industry, increasing efficiency points to a variety of areas within the institution, most importantly the overall loan process. In 2016, it is more expensive than ever before to manage the full lifecycle of a loan due in large part to changing regulations. In Mortgage Daily, the Stratmor Group reported the cost per loan was up 150% for retail lending, 166% on consumer-direct originations, 202% for broker lending and 82% on correspondent lending. The goal is simple: streamline the loan process to decrease the time and money needed to manage today’s mortgage procedures. But how?
The key to streamlining the loan process hinges on one key theme: automation. By implementing a dynamic mortgage loan doc prep solution, institutions can standardize processes across all applicable regulatory changes well in advance of the deadline. While compliance remains one of the most important aspects of the success of any institution involved in mortgage, robust technology can simplify managing compliance and allow employees to focus their time and efforts on other important day-to-day operations. By combining technology and compliance, institutions can easily achieve their efficiency goals and boost overall profits.
While loan doc prep technology can provide vital operational benefits for the overall mortgage process, it can also lead to greater efficiency in a variety of other areas, such as on-boarding and training employees and maintaining a positive customer experience.
On-boarding and training employees
From an on-boarding standpoint, training new and existing employees can be an extremely costly process from both a time and monetary standpoint. In the long run, institutions are looking to get loan officers up and running as quickly as possible, which can sometimes lead to lackluster training. By focusing on a more standardized loan process, institutions can also have in place a more organized training program for bringing in new loan officers and getting them up to speed in less time and at a much lower cost.
Maintaining a positive customer experience
In addition, loan document technology can also provide a significant boost to the overall customer experience, which is of constant importance to any successful financial institution. By implementing a dynamic document prep solution, customers experience a much more streamlined process and avoid many of the annoyances brought about throughout the loan process. For example, rather than having to go into a physical office for signing and/or closing, loan document technology enables the borrower to simply complete this online, which makes the overall borrower experience much more simplistic for both the institution and the customer.
With efficiency touching so many different parts of the mortgage industry, the time to implement a more robust loan document prep process is now. Through the use of advanced technology, institutions can boost customer experience, decrease the time and money necessary to manage each loan and ensure that operations are more streamlined to make the best use of their employee’s skillsets.