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Digital Transformation

Digital Mortgage Lending Solutions Create Customer Longevity

Applying technology for mortgage lending solutions that deepen relationships.

female and male couple sitting on a sofa looking at a tablet while surrounded by moving boxes mortgage lending solutions
Woman and man sitting on a sofa, surrounded by moving boxes, in their new home while looking at a tablet. [fizkes/Shutterstock]

If real estate is a roller coaster, we are inching toward the peak. The current market exposed consumer expectations for better mortgage lending solutions. Most prefer an all-digital experience with self-service options. Lenders must streamline processes to deliver a personalized home buying experience for borrowers.

While it does seem like a wild ride at times, new borrower needs have led to new lender opportunities.

According to a recent article in Forbes, “In less than twelve months, panic selling, irrational buying, jittery markets, remote work, and the desire to get more space for less money in the middle of the ongoing pandemic have created one of the most frenzied and unpredictable real estate markets in a generation.”

While it does seem like a wild ride at times, new borrower needs have led to new lender opportunities. During the mortgage process, customers provide more information than almost any other transaction. That data can extend lender/borrower relationships beyond home buying into other areas. These opportunities include future financial decisions like life insurance and wealth management.

Accelerated demand for a consistent, digital-first borrowing experience

Securing a mortgage has long been a cumbersome process. Complicated onboarding, siloed data systems, and a lack of transparency led to an unscalable system.

99% of lenders agree technology can help improve the mortgage application process.

The process became even more fragmented when offices closed due to COVID restrictions. Many lenders scrambled to find alternatives to in-person exchanges and paper documents. Some took a piecemeal approach to create solutions for a new normal. This highlighted shortcomings that are resulting in clunky, inconsistent customer experiences. As a result, the move toward a digital mortgage lending solution was fast-tracked.

Customers have come to expect digital interactions and experiences. Homebuyers and refinancers now seek lenders who offer online tools to complete their mortgage loans from home. Ninety-nine percent of lenders agree technology can help improve the mortgage application process. A study at MIT also found companies that embrace digital transformation are 26% more profitable than their peers.

Deepening lender/borrower relationships

Lenders often collect more than 500 documents with information during a mortgage application. These documents get sorted into W-2s, tax returns, pay stubs, and credit reports, and more. They are generally stored in separate systems.

A customer relationship management system (CRM) can integrate the systems to pull all the data into one source. This gives lenders a single, complete view of each customer’s assets and needs. They can also offer more personalized solutions and generate referrals between lending partners.

The goal is for lenders to be more than transactional salespeople. Customers need to trust them to provide bespoke insights and services.

This full customer view can also reveal opportunities to expand the customer’s relationship to other areas of the bank. Some things to consider include:

  • Can customers save money through refinancing, personal lending, and wealth management?
  • Are there opportunities with other business lines such as auto/equipment, B2B, or commercial loans?
  • Might customers need homeowner or life insurance policies for a growing family?

The goal is for lenders to be more than transactional salespeople. Customers need to trust them to provide bespoke insights and services.

The path to creating a better experience for both lenders and borrowers

An end-to-end lending platform experience benefits the lenders as much as the customers. They need seamless engagement from lead to application to underwriting, closing, and funding. For example, auto-filling borrower data across systems helps lenders to service loans faster. Automating manual tasks reduces data entry time and reduces errors. Artificial intelligence-powered insights allow lenders to provide more personal interactions with customers. Better understanding borrowers’ needs allows them to be proactive with offers and advice.

If lenders embrace a digital-first approach, they can transform the mortgage process.

A digitized mortgage lending solution provides:

  • A 360-degree view of borrowers’ loans, applications, and accounts to help them achieve their life goals
  • Post-close servicing that includes education, payments, collections, and loss mitigation
  • Insights to allow lenders to be proactive with personalized customer offers
  • The ability to engage with borrowers across any channel when opportunities arise
  • Prospect engagement that automates lead management and loan officer outreach
  • A portal for borrowers and brokers to empower borrowers with online service
  • A loan origination system and point of sale integration that unlocks borrower, account, and credit data with application programming interfaces to determine loan eligibility and automate the lending processes

Buying a home is one of the most monumental purchases a customer will make in their life. If lenders embrace a digital-first approach, they can transform the mortgage process. What was once a minefield of potential complications can be an opportunity to connect with borrowers in new ways. The key is to establish relationships that will last a lifetime.

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