Business Magazine

Addressing the Challenges Lenders Face Today

Posted on the 02 July 2015 by Codymiles

Today, fear of navigating the home-buying process is one of the greatest challenges keeping potential borrowers from purchasing a home.

In order for lenders to overcome this challenge, they must become digital-first. In other words, they must incorporate the technology that allows them to engage with borrowers, manage their expectations and challenge conventional thinking. Moreover, they must apply the methodologies and strategies that focus on the integration of digital services. It goes without saying that this is a radical transition from traditional modes of operation.


How does the modern lender make this transition to digital? Here is more advice from our recent eBook, “From Front to Back: Integrating Your LOS with the Home-Buying Experience.”

The integration of digital services are key to improved client communication, which is predicated on the delivery of the most up-to-date information. Mitch Siegel and Larry Walker of KPMG put it this way: “As a society, we’ve become hooked on technology. From smartphones to tablets to laptops, it’s a 24-7 experience. The lender that uses technology to innovate the process, to look beyond the status quo and bring the experience to the customer, will be taking the first step toward making the process enjoyable.”

The paper hints at another significant point: the need for mobile-friendly platforms. Mobile payment platforms that just a few years ago seemed exotic are now commonplace. The second generation of these platforms is offering complete business management tools, such as CRM services, accounting tools and inventory tracking. Cloud-based tablet POS systems are cheaper to initiate, operate and integrate. Software updates are instantaneous, troubleshooting is handled by the provider, and the data is securely stored and backed up in the cloud.

Integration can’t stop with services. The Uniform Residential Loan Application should be integrated with the loan origination software so that lenders get direct access to the information contained in Form 1003 using interfaces like Fannie Mae’s Desktop Underwriter.

Talk of technology has a tendency to produce questions about how people will fit into the new equations they create. Writing in Origination News, Accenture’s Kelly Adkisson put it well: “To take advantage of changing customer demographics and preferences, lenders must capitalize on digital technology. At the same time, digital technology should work in conjunction with, not as a replacement for, the loan officer.”

Digital channels can help reduce the administrative burden on loan officers, enabling them to spend more time delivering a superior customer experience, developing relationships with real estate agents and builders so as to position themselves as a market resource, and originating new business.

What does the future look like for lenders in this more technology-leveraged world? KPMG’s Siegel and Walker say “a lender’s ability to leverage data, expose self-service capabilities and transparency across multiple channels, drive data analytics, and cross-sell through an understanding of customer behaviors and transactions will be the mortgage company that challenges conventional thinking.”

Where can this transformation begin? With the decision to ask more of your loan origination software.

How do you Improve the Home-Buying Experience?

It’s clear: to address the challenges lenders face today, they must consolidate their tools while delivering more to the customer. There should be one system that integrates the home-buying experience with all of the lender’s backend processes. A loan origination system that can improve communication with all parties, keep employees compliant, supply the most up-to-date information, deliver on a mobile-friendly platform and reduce data entry can help financial institutions excel in today’s market. Want to learn more? Download our new ebook, “From Front to Back: Integrating Your LOS with the Home-Buying Experience” and discover how to meet the demands of today’s borrower.

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