While mortgage tech has helped streamline many aspects of origination, there’s a massive disconnect that nearly all tech stacks are neglecting, and it’s causing you to bleed thousands in potential revenue.
Allow us to explain.
Most mortgage technology is focused on the compliance side of the transaction —that’s where components like automation and integrations take front and center, and for good reason. Modernizing lending is long overdue, and strides made in recent years to advance mortgage tech and regulations have been an insurmountable win.
But can you recall the last time compliant-focused software like your LOS helped initiate a loan?
Do you know which facets of your LOS encourage the borrower to keep up the momentum and complete the application?
As you might have guessed, no aspect of an LOS or other compliant-focused tech helps sell loans.
In fact, digitizing the intake process has actually made it more challenging for the consumer!
Here’s why –
Your prospects don’t care about compliance. All they want is to get approved for a loan they can afford in the most straightforward and enjoyable way possible.
Obviously, compliance 100% matters to your business, but when it comes to your clients, relying on compliance-focused mortgage tech rather than customer-centric will make you lose every time.
An LOS is an enabler but is not a complete intake solution.
A recent study demonstrates this idea clearly. When consumers were asked what factor most positively influenced their interaction with a business, only 32% specifically mentioned technology (PwC, 2018).
In contrast, nearly 50% pointed directly to experience as the most important and influential factor. That’s not to say that technology doesn’t matter, but rather it points to how crucial the experience with the technology is –because THAT’S what they value the most. Experience, not functionality.
Furthermore, this study revealed that you have few chances to get it right. 59% of consumers said they would walk away from a business after several bad experiences, while 17% said they would leave after just one bad experience!
And in an industry where your services are needed once every seven to ten years, losing them now could mean losing them forever!
Can you afford to lose over half of your prospective borrowers??
Of course not! No one can afford to lose clients. But that’s precisely what happens when you entrust your revenue to an application focused more on compliance rather than conversions.
Customer-Centric Mortgage Tech is EVERYTHING To Your Business
When it comes to converting website visitors into borrowers, customer-centric technology and how it’s implemented in the borrower’s journey play a crucial role. But what exactly makes tech “customer-centric,” and why is it so crucial for selling more loans?
Simply put, customer-centric mortgage technology places the customer at the center of the intake operation. It engages and involves the customer at multiple touchpoints to unburden them from the mechanics of origination while empowering and motivating them to complete the necessary tasks.
It also fosters a positive experience throughout the journey –from first discovering your brand to considering your service to starting an application to finally completing it –and maps out a path that significantly increases conversion rates and grows your business by creating loyal clientele.
Are you forcing a process on your clients or making it easy for them to send you a loan?
Nearly 50% of consumers will abandon their mortgage application, and friction from a compliance-focused application is likely the reason. Check out the main culprits of high application abandon rates:
- Consumer is confused by the process and is unable to find assistance
- Consumer is overwhelmed by the requirements
- Consumer doesn’t understand the terms or requirements
- Poor user experience from inferior application design and/or technical problems
Burdening your clients with a compliance-focused app because “it gets the job done” completely ignores your client’s needs. And without a client, is there even a loan?
If your LOS is compliance-focused, what helps your loan officers sell more loans?
Competing solely on rates or products will only take you so far. The rest lies in your unique value proposition and the borrower journey you create with your customer-centric tech. This is the battleground for communicating your competitive advantage and how your loan officers will sell loans!
How does your client-facing technology match up with the big-box lenders?
If you’re using a traditional compliance-focused intake, you’re essentially holding the door open for your prospect to walk out and choose a big-box lender.
Never forget that being a pioneer isn’t the only reason that Rocket Mortgage surpassed mega lenders like Wells Fargo and JP Morgan. It was also their keen awareness that the customer’s online experience was how they would win over the consumer.
The same rings true for you. Even more so!
Not only has Rocket Mortgage climbed to the top of the heap to the tune of $340 billion in originated loans a year, but they’ve also revolutionized consumers’ expectations of how online lending should be.
And the boom of online shopping only reinforces this expectation! Anything less than a positive and intuitive online borrower journey is trash.
Now more than ever, a positive borrower experience with customer-centric tech is mandatory for a successful mortgage business.
LenderHomePage has the technology and resources to help you quickly shift your business to a customer-centric model that engages prospects from the first touch, enhances their interactions with your company, encourages high conversion rates, and wins them over to become advocates for your services.
Explore our website and learn more about how we help you captivate prospects and maintain motivation until the loan and loyalty are yours.