How to make Loan applications easy for customers with Mortgage Pricing Systems?

By inflooens on March 17, 2021

how to make loan applications easy for customers with mortgage pricing systems

 

Gone are the days when loan originators had to figure out the pricing method of mortgage rates from fax machine printouts. Now, Mortgage Pricing Engines presents Loan originators with automated Mortgage Pricing instantly. There is intense competition among mortgage lenders to provide borrowers with the best interest rates. With the economy improving with vaccination roll-out, there is a slight rise in mortgage rates. The current mortgage rates, according to Freddie Mac, is illustrated below:

mortgage rates

Image 1: Mortgage rates as of 03/11/2021 Image Source: http://www.freddiemac.com/pmms/#

The best mortgage lenders provide lucrative online experiences to their customers to be ahead of their competition. Here, we will discuss how mortgage lenders make the loan application process easy for customers with Mortgage Pricing Systems.

Hurdles in Mortgage Pricing

Mortgage lenders face hurdles like long lead times, lack of trained resources when managing mortgage pricing in legacy systems. Many factors are responsible for these hurdles faced by mortgage lenders. Some of them are:

  • Mismanagement of product and pricing processes leads to longer lead-times. Pricing processes are reactive to market needs, and by manual searching, the process becomes slow and inefficient. This mismanagement affects the quality of work.
  • Lack of skilled, trained resources in handling mortgage processes is harming the businesses of mortgage lenders. There is a need for resources to manage LOS platforms, marketing strategies, regulations, and IT processes.
  • Dependence on a single resource is risky (“key man risk”) to manage mortgage pricing processes leads to inadequate knowledge management. It leads to higher costs which otherwise could be easily automated.
  • Lack of communication within teams and untrained resources can result in pricing errors. There are chances of entering inaccurate data into the system.
  • Focus on competition -Mortgage loan officers are busy researching competitive offers for each loan application rather than following leads.
Factors causing hurdles to mortgage pricing

Image 2: Factors causing hurdles to mortgage pricing

Mortgage Pricing Systems can overcome the hurdles faced by lending companies.

Mortgage Pricing Systems

Mortgage Pricing Systems have an innovative Product Pricing Engine (PPE) that allows mortgage lenders to calculate pricing options. The discussion on factors affecting Mortgage Pricing Systems and the working of PPE is in our earlier blogs. Having the right Mortgage Pricing Systems will reduce the turn-around time in loan processing to about 30% and cost to about 50%. Mortgage Pricing Systems overcome the hurdles faced by legacy systems in managing Mortgage Pricing. Mortgage loan officers use the right loan program, rates, prices, and adjustment information with the Mortgage Pricing System.

How Loan processing is made easy with Mortgage Pricing Systems

Automation of the mortgage loan processing is streamlining the process for mortgage lenders. Mortgage lenders and financial institutions are working towards incorporating technology such as AI in making the loan application process easy for customers. The Mortgage Industry has technological advancements with the incorporation of Loan Optimizing Platforms with Mortgage Pricing Systems.

Reduction of lead-time and transparency

Mortgage Product Pricing Engine (PPE) saves time by seamlessly sending the loan application information from the borrower to the PPE for further loan processing. There is transparency in dealing with Loan Officer Commission in loan pricing and profits garnered by lenders. Mortgage lenders can upload rates for processing and view the status of pricing files. Inflooens’ Mortgage Pricing System provides customer satisfaction with its reduced turn-around time.

Real-time Customer-friendly process

Mortgage Pricing System has an automatic system of monitoring of loans concerning daily rate changes. Mortgage Lenders can set rate and price targets and receive alerts of rate changes by email. It allows mortgage lenders to help the borrowers find the best target price. Mortgage PPE help in blocking borrower’s rate to give borrowers to shop for a home with confidence.

Integration with mortgage software platforms

In the Mortgage Industry, AI-powered analytics help to determine the optimal price for a mortgage. Machine learning algorithms provide unprecedented technology to the mortgage industry. Mortgage CRM plays a vital role in customizing mortgage pricing options for customers. Mortgage software platforms like LOS or POS work in confluence with the Mortgage Pricing Systems make the loan application process simple and easy. The customers develop trust and confidence with the Mortgage Pricing offered to them.

Integration with mortgage software platforms

In the Mortgage Industry, AI-powered analytics help to determine the optimal price for a mortgage. Machine learning algorithms provide unprecedented technology to the mortgage industry. Mortgage CRM plays a vital role in customizing mortgage pricing options for customers. Mortgage software platforms like LOS or POS work in confluence with the Mortgage Pricing Systems make the loan application process simple and easy. The customers develop trust and confidence with the Mortgage Pricing offered to them.

Loans closed faster

Mortgage Pricing Systems offer regulatory compliance checks to the loans offered. They can auto-generate rate sheets without any manual intervention. Mortgage PPE gives the worst-case scenario predictions and historical pricing that saves time in closing loans faster. Mortgage Pricing Systems gives an idea to the customers about the pricing till the loan is closed.

Conclusion

Mortgage Pricing Systems are helping customers in closing loans faster. Technology such as AI and Machine language provides superior support to the Loan Operating Systems and the entire Mortgage management systems. Inflooens’ Mortgage Pricing Systems provide real-time pricing and quotes with reduced turn-around time.


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