Hello guys, in this article, we will discuss the 5 trends reshaping the future of mortgage processing. So keep reading.
The year 2023 will see the advent of technologies that will reshape mortgage processing and realtor-lender partnerships. Among other things, it involves gaining access to and storing the realtor’s copy of the paid invoice in the Cloud, which can be easily accessed at any later date by the CFPB and other agencies to audit lenders’ and realtors’ co-marketing efforts.
Lenders are also expected to use market intelligence tools to find realtors for beneficial partnerships and referrals. The COVID-19 pandemic and the rise in tech-savvy buyers have necessitated a paradigm shift in the mortgage processing industry. Legacy processes will need to reinvent themselves to stay relevant.
Top 5 Tech Trends Reshaping the Future of Mortgage Processing
In recent times, it has been seen that consumers want to be more pampered. Whoever pampers them more gets the cake. As consumers get less patient, they use technology to access food services online and even order high-end electronics goods to their doorstep. Even though online mortgage processing outsourcing has yet to deliver the same results, the technology in use is being increased for qualitative improvement in services.
1. Faster Mortgages
Digital players are always on the lookout to close mortgages more swiftly – if not in seconds and minutes like in other industries but at least a few days to a few weeks. One obvious obstacle is that mortgage giants like Freddie Mac and Fannie Mae have a seven-day built-in minimum lead time for many mortgage processes.
Online mortgage processing outsourcing players are getting competitive, offering their customers many options. Some focus on letting borrowers know where their application is at any given point in time. Others are focusing on saving time by automating at least parts of the process, such as the verification of pay stubs and tax returns.
2. Virtual Home Appraisal
In the booming US housing market, there aren’t many property appraisers who can evaluate the houses being sold and/or refinanced. The overseers of Freddie Mac and Fannie Mae are yet to restart desktop appraisals. Virtual appraisals/valuations are faster than traditional appraisals, which require property appraisers to visit listed properties put up as mortgage collateral. Online mortgage processing outsourcing players, and virtual property visiting appraisers relying on various data sources, including property photos, can crank out a greater number of property valuation reports. It should dramatically cut turn times.
3. Cash Offers
During the COVID-19 pandemic, bidding wars were common for mortgaged/foreclosed houses. While sellers sift through multiple offers, they tend to favour cash settlement even at a discount. Cash buyers often score a great buy at a discount compared to buyers who relied more on financing. This has created a situation where several online mortgage processing outsourcing companies made instant cash offers on behalf of the buyers. Companies like Ribbon, Unlock, Better.com, and Homeward offer cash deals on borrowers’ behalf; who later get the required finances for their deals.
As the COVID-19 pandemic impacted the US economy; instant buyers or iBuyers slowed down. The US housing market limped back to normalcy causing an upsurge in the number of people buying houses. Online mortgage processing outsourcing providers like Zillow made generous offers even if they couldn’t sustain it. Zillow learnt that valued homes under ‘Zestimates’ realised technology couldn’t be an answer to all. Other iBuyers like Zavvie, as a real-estate technology brokerage company, helps sellers compare the offers from received iBuyers. Mortgage automation software providers as third-party applications can help boost usage of open banking by facilitating mortgage automation.
Open banking is used to control and access financial accounts and banking. The use of automation software coupled with Artificial Intelligence can help promote autonomy in the real estate mortgage industry while helping to automate and expedite the mortgage application process. Besides this, Automation software providers are expected to increase the use of data science to predict mortgage rate changes.
5. Blockchain: Future of Mortgage Processing
Perhaps the most discussed technology set to impact the real estate market in the USA is the use of blockchain. The innovative technology is the base for developing and using bitcoin and other cryptocurrencies. It is set to help real estate players shave off a few days from mortgage closing timelines, thereby giving both sellers and buyers the crucial advantage of faster execution. Blockchain can make the real estate trade efficient and seamless to the core. Even mortgage processing outsourcing providers are expected to use the NFTs (Non-fungible Tokens) market to make real estate deals beyond its usual digital art, and collectables market. This will allow them to buy/sell real estate properties in the physical world in the form of NFTs in the short- or medium-term.
Reputed outsourcing firms offer state-of-the-art visual imagery services for developing feature-length animation movies, short-form media, corporate presentations, brand and image marketing, educational videos, etc.; and also include mortgage processing outsourcing services and automation software services. So, you can check it out today.