Transforming the Mortgage Lifecycle - Covid-19 and the Mortgage Industry

By inflooens on October 27, 2020

transforming the mortgage lifecycle covid-19 and the mortgage Industry

 

The COVID-19 pandemic has caused industries, around the globe, to rethink the way they do business. This is also true for the people-centric mortgage industry. As the world tries to find a new normal, some changes are inevitable. So, transforming the mortgage lifecycle and causing a disruption in the mortgage industry through digital innovation and leveraging emerging technologies seems like the best-suited option. In today’s blog, we discuss how Covid-19 has impacted the mortgage industry and what changes it has ushered in.

Covid-19 Impact on the Mortgage Industry

2019 closed on a high note for the mortgage industry as the last quarter was the most profitable registered since 2012. With higher Loan Origination, low delinquency rates, and profitability the industry was performing at its peak. From the beginning of 2020, Covid-19 impacts were seen, and by March 2020, the pandemic had taken its hold on all 50 states of the USA. Employment and economic crunch seriously impacted the mortgage industry as people started registering for forbearance and refinance options and there was a huge spike in the delinquency rates. Read our previous blog on forbearance in the mortgage industry to know more about this topic.

national mortgage delinquency rates

Figure 1 - National Mortgage Delinquency Rates Image source - https://newslink.mba.org/mba-newslinks/2020/august/mba-newslink-tuesday-aug-25-2020/mba-chart-of-the-week-mortgage-delinquency-rates/

Need for Mortgage Process Automation

The mortgage industry quickly realized the value of digitization and Mortgage Process Automation. Digitization in the Mortgage industry has been discussed in one of our previous blogs. In addition to the worrying market conditions seen at the beginning of 2020, there was a need for mortgage process automation owing to social distancing norms that were in place in many areas. The lack of proximity greatly increased the necessity of remote and anywhere access to mortgage processes. This includes Mortgage CRM and Loan Origination System, to Post-close and Sales performance management.

From the customer’s perspective, there are new demands as an increasing number of individuals are comfortable with online platforms. Also, with frequently changing market conditions and rules and regulations there is a lot of new information that customers need access to. Here they need the help of loan officers and lending agencies to support them through the crisis. Loan officers are key to Mortgage CRM and can only perform their best if they have information at their fingertips. This is only possible through Mortgage Process Automation that allows information broadcast across markets in an instant. Add to this, a good Mortgage CRM platform should have the functionality of Loan Origination System, Sales Performance Management, Compliance, and Post-close CRM. With inflooens, you can be sure of working with the best mortgage CRM in the market.

customer views on mortgage process

Figure 2 - Customer Views on Mortgage Process Image source - https://www.fanniemae.com/research-and-insights/perspectives/now-time-adopt-digital-mortgage-technology

Fully Digital Mortgages and Loan Origination System

Looking at the high percentage of borrowers interested in digital mortgages, it comes as no surprise that the digital lending platform market in North America is expected to see a CAGR of 19% from 2019-2025. With many people preferring social distancing and remote working becoming an accepted practice, digital tools will allow lenders to better collaborate with their teams and provide continued service to their customers. The critical part of adopting digital mortgages is that it might be limited in the closing stages of the value chain. Lenders may also find difficulty integrating their existing Loan Origination Systems (LOS) to the new platforms. Many times the new platforms may not provide a 360-degree view of the mortgage processes and may be difficult to use for loan officers. It is important to choose a Mortgage CRM platform like inflooens that is convenient and superior to use while being feature-rich.

Mortgage process automation is possible for all stages of the mortgage value chain for transforming the mortgage lifecycle. End-to-end digitization will result in fully digital mortgages that will help to collect and record all necessary data to lenders to monitor lead conversions, mortgage status, team performance, and documentation. This data can be used to provide valuable insights for loan officers and lenders to improve their business by greatly enhancing customer experience and streamlining processes.

Conclusion

The Covid-19 crisis has provided the needed push for change for the mortgage industry to adopt new and emerging technologies for transforming the mortgage lifecycle. Digitization for Loan Origination Systems, sales and performance management, Mortgage CRM, compliance, mortgage pricing, and loan servicing are the way forward. Backed with reliable and efficient technologies mortgage process automation has the potential to provide actionable and empowering insights to anticipate customer needs and provide offerings they need. Digitization will also provide the flexibility to lenders to quickly adapt to changes in the market at have up to date and integrated business processes across the board. That is why choosing inflooens, the best mortgage CRM platform, is the best decision you can make to truly digitize your mortgage value chain.

inflooens is the world’s first “Loan Team Optimization Platform”. This next-generation, cloud-based, integrated mortgage platform aims to transform the entire Mortgage Process and enhance the customer experience. Learn more about the platform on www.inflooens.com


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