TheMReport

24 | TH E M R EP O RT FEATURE I n today's on-the-go, need-it- now world, consumers expect to manage their finances when, where, and how they want. Rarely is the need for ac- cessibility and information greater than when preparing to make one of the biggest purchases of their lives—a new home. While the digital mortgage is not new, it is evolving—and just in the nick of time. When consum- ers are at work on their desktop, they want to be able to reach their lender. If they're running to lunch and new conditions arise that ap- ply to their mortgage, they expect a text message or an email on their mobile phone that alerts them. However, it's not enough to have a great consumer experience. All the pieces of the process have to fit and work together, and that is only achieved through integra- tion. Without tight integration be- tween the online origination portal and borrower engagement portal and backend processing, efficiency is lost, along with business and revenue. "Digital mortgage" now means everything from origination, all the way through to delivery. Know Your Borrower A borrower's current financial institution has the inside track at winning their business, but only if the bank or credit union can deliver the right mix of loan costs, services, and experience. Borrowers want an Amazon- like experience, where the knowledge gained from their past activity with a financial institu- tion is kept and incorporated into subsequent interactions, including mortgage applications. They do not want to start from scratch when applying for a mortgage. They expect their financial insti- tution to use the data it already has to provide a better, more intelligent experience for them. The real advantage comes if the financial institution is able to integrate essential services to create intuitive experiences that bring fi- nancial lending products under one umbrella as one branded experience. Partnering with multiple third parties can make it difficult to achieve this outcome. Working with a single technology source can help ensure a complete, inte- grated lending ecosystem, which in turn delivers a better experi- ence for borrowers. Moving Online C onsumers also seem will- ing to do things differently, if it helps to expedite the loan process, according to the most recent quarterly consumer trends survey from Fiserv. The "Expectations & Experiences: Borrowing and Wealth Man- agement" survey found that as much as half of recent home application tasks are being com- pleted online, although using a mobile device to complete those same tasks is still relatively rare. The survey also found borrow- ers who applied for a loan in the past five years used online or mobile capabilities to elec- tronically sign loan documents, photograph and upload loan materials and driver's licenses, and verify identities. Despite the trend toward online, self-service applications, it does seem consumers want it both ways. They want the benefits that technology gives them. They want to be able to submit information when it's convenient for them, to see where they are in the origina- tion process, and to help their lender accelerate the process by getting documents back to them, usually through electronic means, but they still may want that hu- man contact that only a mortgage lending specialist can give them. For many people, buying a home is the biggest financial trans- action of their lives. They want an advisor to help them navigate the entire process, much like they do when they work with their real estate agent. For lenders this can include reassuring them, support- ing them, and helping them figure out alternative options if they can't qualify for the type of loan they initially thought they wanted. It's All About Technology T oday's mortgage industry is a buyer's market. The refi market is gone, and it's going to be gone for a while. Lenders are all competing for the same borrower in the same space, and the only things that are going to differentiate one competitor from the other are fees and the borrower's experience. The key for both is technology. Creating efficiencies, reducing costs, growing market share, offer- ing a better borrowing experience, and providing a better user expe- rience are all tied to technology. So is automation and workflow and compliance logic. With technology, a financial institution can create an integrated process from origination to close with less overall cost. Decrease Risk With Automation F inancial institutions are well aware of the issues of compliance, regulation, and risk associated with mortgages but may not realize how digital capabilities can significantly simplify the process. Manual processes are cumbersome and prone to error, and there are countless compliance rules to consider. Lenders and investors must be able to verify and vali- date that the loan they're about to service or create doesn't have undue risk attached to it. Tech- nology automates many of those tasks, which not only stream- lines processes but also helps diminish the regulatory burden and associated risk. A digital mortgage may mean a digital transformation for some At Your Fingertips A well-integrated digital mortgage portal is crucial to keep up with consumers' on-the- go lifestyles—learn how to make this a seamless process. By Lionel Urban

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