The Next Generation Mortgage Process Is Much More Than ‘Self-Serve’ Technology.

When it comes to buying a home, the next generation of home buyers are more acquainted with the digital process, and therefore most lenders believe that they expect and are happier with a more ‘self-serve’, no-touch mortgage processing experience. However, it is interesting to note that, at times, the ‘digital’ generation still requires a lender to consult with when they decide to take their first step into independent homeownership - someone to talk to them and explain things, according to Ellie Mae’s second annual Borrower Insights Survey.

A sample of 3,006 U.S. adults who are current homeowners and renters above the age of 18 were surveyed, and here are some highlights of the results:

• 61% of respondents would like to apply for and complete a mortgage application fully online
  
  
• 17% of the current borrower and renter respondents had applied for a mortgage in 2017; comparatively, of respondents ages 18–24, 50% said they applied for a mortgage in the past year. This shows the growth and pace at which the millennial generation’s purchase power and interest are growing
  
  
• 49% of mortgage holders surveyed responded that their last experience with a lender was for a purchase, and 47% responded that their last experience with a lender was for refinancing
  
  
• For renters, 64% of respondents (between ages 65 and 70) wouldn’t want to invest in a new purchase as they are happy renting, while 56% of respondents (ages 25–34) mentioned lack of savings being the issue
  
  

What does the survey indicate?

Despite the keenness to take advantage of the digital revolution, some consumers are still reluctant to give their full-fledged consent to the idea of fully online mortgages, because of a lack of full transparency and other minor logistical issues.

Ellie Mae’s survey also confirmed that borrowers across all generations expected digital options to be a part of their loan process, but would further still like the capability and flexibility of speaking to a person (from the lender organization) when needed.

“These trends point to a significant opportunity for more assertive lender communications that build stronger borrower relationships and accelerate the loan process,” the survey concluded. “An increasing number of high-growth lenders have recognized the potential to help reinvent the entire mortgage experience for today’s digitally integrated consumers.”

Technology isn’t the only ingredient to business growth

What does this mean to lenders? It is obvious that technology alone will not be enough to enhance borrower experience. Lenders need to implement a strategy that focuses on process enhancements that build stronger communication links, helps with a quicker closing, and combines these with a digital experience. This will drive business value in the truest sense, helping them gain greater market traction and increase borrower satisfaction. And given the current ratings-based social media interconnected world, this touch-enabled digital borrower experience will directly increase their online and offline reputation, enhancing business growth and bottom line.

Having supported several U.S. banks and independent mortgage lenders for over 17 years now, we at Coforge BPS understand the volatility of the market and the changing borrower demands. To keep up with the market trends, we have developed a suite of solutions that are a combination of optimum services and technology. When implemented by our clients, these solutions have delivered faster closings, enhanced communication, and streamlined processes with zero tolerance to non-compliance. To better understand how we support mortgage loan processing functions that can directly enhance business growth, contact us at or visit https://www.coforge.com/bps/