By Brandi Hamilton
Mortgage Lenders are facing a more competitive marketplace where credit decisions have never been more crucial. To thrive in today's world of heightened regulation and increased competition, Mortgage Lenders should look to collaborate with users of Cloud Technology - which offers multiple advantages, including improved scalability, efficiency & reduced fatigue.
A red-hot housing market, changing regulations under a new administration, and the many dynamics brought on by COVID-19 continue to impact the mortgage industry. Lenders are under persistent strain, and some are battling "lender fatigue" or burnout.
Because of this environment, it is worth taking a closer look at some of the obstacles and pressures lenders face—and how those challenges are driving technology changes. First, there's competition. Lenders are facing competition from many players both on- and offline, as well as from traditional and new, emerging lending platforms. This has put more pressure on lenders to find new ways to compete in a much bigger marketplace.
Then there's the ongoing need to be more responsive to their customers. Consumers want information about their creditworthiness and loan status available on demand, but express security concerns about sharing sensitive banking credentials and don’t want to be inconvenienced by the hassle of providing pay stubs.
But Here's The Good News: Integrating Secure, Cloud-Native Technology Can Help Reduce Friction on Borrowers, and Possibly Reduce Lender Burnout
To streamline lending processes and make faster decisions, lenders must embrace new technology quickly or risk falling behind competitors who already have it deployed. For example, digital income and employment verifications from a third-party provider such as The Work Number® can help lenders who are performing loan decisioning to reduce the potential for burnout by allowing them to make the most of their time and resources. There are also other benefits—and it makes sense to explore this option for your business. Here's why:
Spending Less Time Manually Completing Tasks That Could Be Automated Translates to a Faster and Smoother Workflow
Income and employment verification is an essential part of loan decisioning. Automating and integrating this step within your existing Loan Origination System (LOS) can free up time to focus on higher-level activities—saving valuable time. During loan origination when a processor has to "swivel" from one system to another to verify employment or income, or worse, make a phone call to an employer to verify that information, it can not only delay “Closing Day”, but also creates friction for both the borrower and the lender. Lenders can cut through these complexities and stressors with help from The Work Number.
Increased Flexibility by Enabling Lenders to Integrate Automated Employment and Income Verification
Automation and an agile workforce allow mortgage lenders to succeed during periods of change. The cloud is a key enabler for this success as it helps provide greater flexibility. While many borrowers are demanding a fast, easy digital lending process – online – many still prefer a high-touch, personal process. Digital verifications give lenders the flexibility to be high-touch and responsive to customers when needed by automating certain other tasks.
Improved Security with the Latest Encryption, Authentication, and Data Protection Technologies
In addition to the security protections built into the cloud environments, The Work Number data is further protected by additional rigorous security controls, ultimately creating a solid security framework. Our solutions are designed to integrate with the digital technologies of tomorrow with the lending industry needs of today. Both cloud-based services and Equifax controls regularly undergo independent review for security controls to help meet global standards. These include various general data security certifications that independent governing organizations regularly audit. What does this mean for lenders? Our solutions can help lending institutions with their verification needs without sacrificing customer experience, privacy or operational efficiency.
Allow for a Better Customer Service Experience
In today's market, the most successful lenders are often those that can best meet consumer expectations of speed and convenience. And those lenders usually deliver on that expectation in a way that often creates a positive, if not delightful, customer experience. A key component to success in this new borrower-lender model hinges on the ability of the lender to effectively access consumer data from a secure, independent, third-party source. Savvy lenders rely on instant access to borrower information to help enable quicker, even same day, decisions regarding a loan application.
In conclusion, cloud-based technology is an essential part of many lenders' loan decisioning platforms. They may benefit from higher customer satisfaction and employee productivity. Mortgage lenders need to choose a provider, like The Work Number, that not only meets but exceeds their requirements so they can focus on what matters: being successful in this competitive market.
Download our free eBook to learn more about how automation and collaboration with technology solution providers like Equifax are essential for today's mortgage lending landscape. Also, visit The Work Number’s mortgage page for even more information.