As is common with lower margins and a declining issuing environment, mortgage lenders will turn to technology to manage costs. And there has been an explosion of fintechs looking for options, said Suha Zehl, chief strategy officer at consulting firm BlackFin Group. However, many medium and smaller lenders lack the in-house person to help them manage the process. BlackFin offers these services.
If a lender decides on a cookie cutter solution, "I'll do that for every borrower, for every customer I have, then you don't differentiate yourself," said Zehl.
The advanced analytics tools now available will help lenders tailor solutions for their clients, said Chris Boyle, president of home lending at Roostify technology platform. “To be able to take in documents, extract data, do some calculations, do some other things – is really good for consumers. It helps them make a purchase decision. It also helps the lender with the loan decision, ”she said.
"The ability to use this data in a very constructive way to achieve this fulfillment is sure to accelerate in the mortgage space in 2022," said Boyle.
She also recognized Fannie Mae's recent decision to incorporate rental payment data into the mortgage decision process as a path to fairer lending, and expects current technology to help eliminate prejudice and achieve more equity. "The digitization process will only be a master in all of this."
There are many providers out there doing the same, and lenders need to analyze which is right for their business and the customer they serve.
"It is very important to analyze and evaluate this in order to determine whether partner A fits in with our culture, with our company management or with partner B?" said Zehl. "You can both offer the same service, but for a successful implementation and successful deployment, the right acceptance by your users and your customers, it is really important to find that synergy between your company and the partners you have chosen."
However, when choosing a new technology, lenders must also consider the user experience for their employees, not just their borrowers. both should be viewed as customers of this technology, said Zehl.
“And if you offer a solution that can be phenomenal for the customer / borrower and that makes the customer / user's life really difficult and challenging, then that will affect your productivity, that will affect your average cycle time and its duration needs you to complete this loan, "she continued.