Data and the customer experience

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How to Leverage Data to Make Customers—and Lenders—Happy
Customers expect a streamlined experience when they apply for a mortgage or home equity loan. Using data to eliminate manual processes allows lenders to deliver the experience customers expect.

Due to the increasing impact that digital companies such as Uber, Spotify, Netflix and Amazon are having on modern consumers, consumer expectations of the home buying and refinancing process is evolving. Accenture research indicates that 87% of consumers begin their home buying experience online.1 They are increasingly comfortable with online lending, with 61% of consumers saying they expect to apply for and complete a mortgage application fully online, according to Ellie Mae.2

And consumers expect that—like ordering a rideshare, streaming music or video, or shopping—the home purchase or refinancing process will be painless, but oftentimes it’s not.

The most common complaints borrowers have with the current loan process are:
1. Poor communication with the lender
2. Having to send documents more than once
3. The process takes longer than anticipated

Digital Tools Only Go So Far

The mortgage lending process for both primary and refinance loans can still be a time-consuming and frustrating process that can take at least 45 days—or sometimes longer. Lenders may have implemented a variety of digital tools, such as online applications, but behind the scenes the underwriting, approval, and closing process is peppered with manual steps that slow down the entire lending process. Customers, accustomed to on-demand products and services in other aspects of their lives, are annoyed.

When lenders are able to electronically access borrower information, the borrower no longer needs to collect and provide mountains of paperwork to the lender. The result is often faster closing times and improved communication. PwC found that having to extend their closing date significantly decreased satisfaction with the lender for both purchase and refinance customers.3

How Data Verification Improves Customer Experience

Lenders that automate income and asset verification activity can reduce potential risks for themselves while simultaneously reducing effort for the borrower - by way of shorten timeframes within the loan process, reduced delays and lower operating costs. For example, Quicken Loans is now the largest mortgage lender in the U.S., in large part thanks to the convenience and speed of Rocket Mortgage.4

Much like manufacturing, the mortgage lending process has historically followed an assembly line approach. Lenders have implemented workflows and automated tasks so that as one step is completed, the application moves onto the next task. These workflow tools have had a huge impact on productivity by keeping the process moving efficiently and ensuring consistency.

One of the most manually-intensive and time-consuming aspects during loan origination and underwriting is verification of data. This includes employment, income, Social Security number, occupancy verification, comparing borrower information against industry watch lists, and accounting for changes in borrower data between the application and closing date.

But when more automated verification tools are introduced, the manufacturing process becomes significantly faster. A recent workflow analysis completed by DataVerify for a top 20 lender yielded the following results when a single-source risk mitigation platform was inserted into their current processes:

By introducing more automated verification tools, the lender:

  • Saved over $30 per loan file with an estimated annual saving of almost $2,000,000.
  • Saved over an hour of work time per loan file.
  • Eliminated over 30 manual tasks from the workflow including but not limited to tasks in the opening, processing, and underwriting as well as steps that required the lender to go to multiple websites and/or third party vendors.

Leveraging data aggregation, analysis, and streamlining the origination process through improved workflow can make the application process simple, safe, smooth, and satisfying for the lender and the borrower as well as provide significant cost savings to the lender and provide for a better customer experience.

For More Information

To learn how Data Verify can streamline processes, improve efficiency, and improve customer satisfaction across the consumer and real estate lending spectrum, contact us at 866.895.3282 (option 5) or

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