Process changes can bring new business to mortgage lenders
When interest rates start to rise again — and they will — mortgage lenders looking to bring in extra business should consider shaking up their offerings.
Simple steps, such as digitizing the lending experience, can go a long way toward boosting mortgage applications even as interest rates continue to fluctuate.
Smartphones are used for just about everything these days, including shopping for mortgages. A survey conducted by Fannie Mae found nearly two-thirds of Americans have completed mortgage activities on a phone or tablet while almost three out of four (73%) hope to do so in the future.
Cater to the preferences of today's homebuyers by tracking down partners that can manage the lending app experience — whether that's mobile app experts or lending point of sales platforms. Working with an outside partner may prove necessary if your employees aren't all that familiar with the app development process. Start the search process sooner rather than later to ensure keeping up with consumer expectations as well as the mortgage industry’s most popular apps such as Quicken's Rocket Mortgage.
Most millennials want to own a home. In fact, 72% say owning a home is a top priority. Earn the business of these tech-savvy consumers by digitizing the lending process. As the largest generation in the U.S. workforce, millennials have the purchasing power to make a big difference in your bottom line.
When it comes to creating an online lending experience and ultimately increasing the number of mortgage applications from millennials, start off with an overview of processes that can be made more efficient through digitization. For example, loan officers may be held up by a lack of immediate access to income or asset data.
Not only is digitization poised to get loan officers the information they need faster than ever before, but it can also reduce errors or fraud stemming from manual data entry and extraction. The result? A more accurate, secure and efficient lending process that’s capable of handling an influx of mortgage applications from millennials.
Homeownership has long been seen as an important step in achieving the American dream. Unfortunately for the 26 million Americans who are credit invisible, taking that step isn't always easy. Without the ability to prove their financial well-being, credit invisible consumers often fail to qualify for loans and end up missing out on big-ticket purchases. Moving forward, however, expanded financial data could open up new opportunities for consumers who lack a sufficient credit history.
Alternative data points — including cellphone and utility bills — may one day provide additional insight into a potential borrower’s financial health. Taking such information into account is especially important when evaluating younger consumers who haven't had the time to build a lengthy credit history. Rather than dismissing those consumers, leverage expanded financial data to get a closer look at their ability to pay back a loan.
Rising interest rates don't mean it's time to rule out an uptick in mortgage applications. Pave the way for a boost in business by working with a partner that can develop a quick, user-friendly mobile app, digitizing the lending experience and considering expanded financial data.