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Explore how automation is transforming mortgage lending, boosting efficiency, profitability, and customer experience in a competitive market.
Success leaves clues. That’s something that Tony Robbins says often, but most successful people know this to be true. None of us make it on our own. We look for the clues left by those who came before us and paved a successful path.
In a cyclical business, like mortgage lending, you tend to see some of the same clues repeat themselves. As the industry has moved through past cycles, this has certainly been the case. But things are changing.
The lenders who have survived through this multi-year industry downturn are thinking and acting differently than those who came before them. I think they understand that what worked in the past is not going to work in the coming market, which is something we’ve been saying for some time.
As a result, we’re seeing different clues. I’ll give you an example. Whereas in the past, lenders talked about automation, and some even told consumers that their process was automated, today’s lenders are taking automation much more seriously.
We know this to be true because many of them have been talking to us about our MCP loan origination system and the many advanced automated features it offers.
Why is this happening and why will higher levels of automation be the clues that lead future lenders to success?
Lenders have always been attracted to automation, but in a highly regulated industry it can be risky to put a process on autopilot when there could be a compliance problem hiding inside. This has limited automation and increased quality assurance budgets in the past, spurred on by investor repurchase requests.
Today’s modern technolody, developed with compliance in mind and backed up by compliance experts have changed all of that.
Today, advanced automation is more than a technological advancement. It’s also not just a trend but a fundamental shift in how lenders operate, compete, and thrive in a dynamic market.
In our conversations with lenders, we see this focus on advanced automation driven by the urgent need for efficiency and scalability. But there are other key factors they are focusing on that will make automation in the future more than just an idea for leading lenders.
Profitability Pressures
The vast majority of lenders are not earning a profit on their loan origination activities. People account for a large percentage of the lender’s cost to originate, and they know it.
Competitive Pressures
With consumers shopping around more than ever, lenders need "sticky" automated interactions on their websites and portals to retain the attention of potential customers who might otherwise drift to competitors.
Customized Workflows
Lenders have always wanted custom workflows, though current research shows that most don’t provide an ROI. Our Mortgage Cadence Platform (MCP) is based on best practices workflows that will solve this problem.
Configurability
MCP is extremely configurable to ensure we are meeting your business needs, making the platform work for you. This allows lenders to adapt systems to their specific needs rather than relying on outdated, one-size-fits-all solutions or expensive customization.
Operational Efficiency
Automation is one key to plugging the "holes" in operations where money is leaking out. By streamlining processes and reducing manual interventions, lenders can significantly cut costs and improve overall efficiency.
Scalability for Future Growth
New refi activity will eventually arrive and lenders are not eager to compete for people to do work that their technology can handle. Automated LOS technolgoy provide the flexibility to handle increased volume without staffing back up.
Enhanced Customer Experience
The Holy Grail is the borrower experience. We all know that now. From faster application processing to more personalized communications, advanced automation enables lenders to provide superior service.
Successful lenders won’t just talk about automation. Neither will they offer a shiny button to consumers and pretend it’s automation. They’ll invest in modern technology to actually make it happen.
It starts with a conversation, which we’re happy to have with any lender at any time. Reach out to us today.
By George Morales, National Sales Director at Mortgage Cadence
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Mortgage Cadence:
Alison Flaig
Head of Marketing
(919) 906-9738