Customer-Centric Mortgage Tech: Your Key to Closing More Loans

The mortgage industry has undergone significant transformation thanks to technological advancements, but there's one critical aspect that often goes overlooked, leading to potential revenue losses. Let us shed light on this issue.

Most mortgage technology primarily focuses on the compliance side of the transaction. This is where automation and integrations take center stage, and rightfully so. The modernization of lending and regulatory advancements have been monumental achievements in recent years.

However, take a moment to think – when was the last time your Loan Origination System (LOS) or compliance-focused software actively initiated a loan? Do these tools encourage borrowers to maintain momentum and complete their applications? The answer is likely no.

In fact, digitizing the intake process has inadvertently made it more challenging for consumers!

The reason is simple – your potential borrowers aren't concerned with compliance; their primary goal is to secure an affordable loan through the path of least resistance and in the most enjoyable way possible. So while compliance is undoubtedly essential for your business, relying solely on compliance-focused mortgage tech rather than customer-centric solutions will cause you to miss countless opportunities.

An LOS is undoubtedly a valuable tool, but it isn't a complete intake solution.

Recent studies support this notion. When consumers were asked about the most positive influence on their interaction with a business, only 32% specifically mentioned technology, according to PwC in 2018. In contrast, nearly 50% pointed directly to the experience as the most significant and influential factor.

This emphasizes that while technology matters, the user experience is paramount.

Furthermore, this study revealed that you have few chances to get it right. A staggering 59% of consumers said they would stop patronizing a business after several bad experiences, with 17% willing to leave after just one negative encounter.

In an industry where clients are engaged once every seven to ten years, losing a prospect now could mean losing them forever.

Can your business afford to lose over half of your prospective borrowers? Of course not. No one can afford to lose clients. However, that's precisely what happens when you prioritize compliance-focused applications over conversion-focused ones.

The Power of Customer-Centric Mortgage Tech

When it comes to turning website visitors into borrowers, customer-centric technology and its implementation in the borrower's journey play a pivotal role. But what defines "customer-centric" tech, and why is it vital for increasing loan sales?

In essence, customer-centric mortgage technology places the customer at the core of the intake process. It engages customers at multiple touchpoints, simplifying origination mechanics while motivating them to complete necessary tasks. This approach fosters a positive experience throughout the journey – from initial brand discovery to service consideration, application initiation, and completion. It significantly increases conversion rates, ultimately growing your business and cultivating a loyal clientele.

Are you imposing a process on your clients or making it easy for them to apply for a loan?

High application abandonment rates, hovering around 50%, often result from a compliance-focused application that confuses consumers, overwhelms them with requirements, or presents unclear terms and conditions. Poor user experience due to inferior design or technical issues exacerbates this problem.

Forcing a compliance-focused application onto your clients disregards their needs, and without satisfied clients, there won't be any loans.

If your LOS prioritizes compliance, how will your loan officers sell more loans?

Competing solely on rates or products has limitations.

On the other hand, your unique value proposition and the borrower journey, facilitated by customer-centric tech, are where you communicate your competitive advantage and empower your loan officers to excel.

How does your intake compare to that of big-box lenders?

If you're still using a traditional compliance-focused intake, you're essentially inviting prospects to explore other options, potentially leading them to choose a big-box lender.

Remember that Rocket Mortgage's success isn't solely due to pioneering online lending; it was their unwavering commitment to enhancing the online customer experience. And this strategy has been working incredibly well! Rocket Mortgage has not only dominated the market with $340 billion in originated loans annually but has also revolutionized consumers' expectations of online lending.

The same holds for your business, perhaps even more so.

The surge in online shopping further underscores the importance of a positive and intuitive online borrower journey. More than any time in lending history, a positive borrower experience with customer-centric tech is mandatory for a successful mortgage business.

At LenderHomePage, we possess the technology and resources to help you quickly transition your business to a customer-centric model.

We help you engage prospects from the very first interaction, enhance their engagement with your company, encourage higher conversion rates, and turn them into enthusiastic advocates for your services.

Explore LenderHomePage.com to learn more about how we can help you captivate prospects and maintain their motivation until the loan and loyalty are yours.