It seems that most of the attention around digital mortgages has revolved around how non-bank lenders and fintech companies are using innovations to steal marketshare away from more traditional lenders. However, adopting digital mortgage practices can have such a positive impact on member satisfaction that credit unions should more closely examine how they can leverage the innovations to their advantage. This is important because closing on a mortgage is still perceived as a stressful, cumbersome, expensive and lengthy process by many borrowers.
Originating a mortgage traditionally involves a great deal of paper documents, many of which are confusing to the borrower. Consumers are growing increasingly unhappy with this and with their inability to find good information. As credit unions strive to provide an excellent experience for their members, they are offering more digital and mobile banking and payment solutions to their members. Implementing digital mortgage processes is an excellent next step to enhancing member service while also modernizing the mortgage department.
There are at least three significant benefits that a digital mortgage strategy can deliver to credit union members.
It takes more than a month for the typical borrower’s loan application to work through the lender’s pipeline so they can get the keys to their new home. This process can be shortened by integrating an eClosing solution. But that’s just the beginning. Comprehensive eClosing technology allows the lender to streamline operational processes, compress the loan cycle and avoid compliance errors that may delay closing.
When the CU adds eClosing technologies to its mortgage loan origination process, it is saving its members from having to wade through stacks of physical documents to get a loan. Instead, they can enjoy the convenience and flexibility that comes from reviewing and eSigning their mortgage documents anytime and on any device they choose.
eClosing technology further empowers the CU’s members in that it keeps them more informed about the process itself. Borrowers can essentially monitor the status of their loans in-real time, allowing them to take more control of the process and proactively take any steps that are required of them. They can review the documents at their leisure, taking the time they need to fully read and understand the language within their loan package.
With comprehensive eClosing technology on their sides, credit unions can ensure that closings are no longer an arduous process rife with stress and inefficiencies, but a chance to help their members actually enjoy purchasing a home.