Online mortgage shopping is the easiest way to compare rates and conditions.
The rise of digital technology has ushered in a new era in the mortgage application process. Borrowers have taken advantage of historically low interest rates and lenders have adopted digital mortgages more than ever.
The new lending survey found that the pandemic has permanently changed the way consumers use technology, and those who want to buy or refinance homes are looking for lenders to provide loans, online tools to supplement their home mortgages .
The vast majority (90%) of lenders believe that technology can help improve the mortgage loan application process, noting that its benefits include simplifying the entire process (74%), reducing closing time (70%) and data entry (67%).
“The past year has brought a perfect storm to our industry,” said Joe Tyrrell, president of ICE Mortgage Technology. “Not only do you have COVID, which requires lenders to switch to virtual labor, but you must also continue to conduct business with borrowers in a safe and socially isolated manner, and we are seeing historical growth in reserves.
He added: “This has prompted many lenders to re-evaluate their technology partners, the way they develop technology, the manipulation systems they use, and the tools they use. Rely on. We have heard many stories from lenders across the country and they have no idea. Incompletely and permanently change the way they provide services to borrowers.”
According to the survey, the importance of naked solutions provided by lenders, such as online applications in the lending process, has increased for borrowers in the Americas in 2020. 58% of people said this may affect their lenders’ decisions (above 50% in 2018). Although still important, the possibility of providing a specific mobile application is unlikely to affect the borrower’s choice of lender. 47% of people said that the availability of the application will be considered in the 2020 decision (40% in 2018) ).
Owners of online applications prefer a simpler application process (55%), reduced closing time (53%), and reduced face-to-face interaction (49%).
Not surprisingly, the ratio of person-to-person interactions will become more and more important in 2020, because in 2018 only 37% of consumers listed “no need to meet in person” as “they appreciate their appreciation”. The process of applying online. Regardless of whether they have gone through the mortgage process, 64% of consumers surveyed believe that the online mortgage process will make it easier to buy or refinance compared to online transactions.
“From the borrower’s perspective, this epidemic has accelerated the demand for cohesive digital first-borrowing experience,” Tyrrell said. “The electronic signature of documents is quickly becoming a minimum requirement, and borrowers expect a smooth start. To In 2020, many lenders have invented different solutions to meet the needs of borrowers, but this often leads to a more chaotic and fragmented process. Covid emphasizes the need to provide consumers with a unique and cohesive digital experience.”
Currently, online applications and online portals are the most popular digital tools provided by lenders, and more than 9 r 10 provide borrowers with two options (91%). By 2020, among the lenders that provide online applications, 64% said that more than half of all loan applications were submitted online, while 38% said that more than 80% of their loan applications were completed online. Large organizations. Half of large institutional lenders, or institutions with 200 or more employees, report that less than 50% of their loan applications are submitted online.
Borrowers whose online and/or mobile options are offered by lenders choose to benefit from these tools during the mortgage process. In 2020, 61% of borrowers used online applications, up from 58% in 2018. 61% of borrowers also used online portals to electronically sign and notarize documents. Number, compared to 56% in 2018.