The Digital Transformation...More than just eClosings.
It’s all changing so fast when it comes to “The Digital Transformation” in the mortgage industry it can be difficult to keep up. However, it’s now clear that what many refer to as “eMortgage” (comprised of elements like eSigning; eClosing; eNotary; eNotes and even eVaults) is no longer a theory or a goal. It’s reality.
And we’re not just in a hurry to digitize the origination or closing process, either. In fact, we recently uncovered an informative survey conducted by Lenders One in 2017. You can see a great write up on it here at progressinlending.com.
One note is the fact that 74% of the mortgage bankers surveyed worry about their customers’ private data. After all, much of it is exposed to any number of third party service providers throughout the transaction...and hackers and identity thieves are taking notice.
We also found it interesting that the majority of bankers surveyed (56%) indicated that “improving operational efficiencies” was their primary motivation for implementing new technology.
In other words, mortgage lenders are beginning to put even more emphasis on margin--not just revenue. They’re looking to improve efficiency while decreasing risk...all while cutting costs. Most of their service providers are taking note.
The best mortgage lenders are taking note as well. They know that a significant part of their “operations” or “production” process is probably outsourced to a service provider (title, valuation/appraisal). And if that partner is outdated or, worse, not secure enough to protect consumer data, then there’s little point to a lender modernizing its own processes.
If you’re a mortgage lender, now’s the time to ask the tough questions of your service providers. What are they doing to keep up with the industry’s tech revolution, and is it enough?