Digital mortgage is the latest buzzword in the lending market today. But, according to an eBook titled, “The True Digital Mortgage” by mortgage technology platform provider Ellie Mae, lenders have just scratched the surface of what digital mortgage actually means, often miscasting the term when referring only to online applications or eClosing.
“As lenders learn what it takes to engage all borrowers, they must also adjust to a purchase-centric market with lower volumes, higher expectations of on-time origination dates being met, and tougher scrutiny of the bottom line,” the eBook says. “In this environment, the savvy lender is focused on reducing the cost of origination (now at nearly $8,000 per loan, according to the MBA) and recognizes the need for automation, exception-based processing, and the ability to better leverage data in all aspects of the origination process.”
According to the eBook, a true digital mortgage must encompass the entire loan lifecycle, from targeted marketing automation to lead generation to the application and all the way through to automated investor delivery. Only then will the promise of the digital mortgage pay off for both borrowers and lenders.
So what do borrowers really wish from digital mortgage? To better understand the preferences of U.S. homebuyers, Ellie Mae surveyed more than 3,000 millennials, Gen Xers, and baby
boomers and found that across generations and genders, homebuyers want a mortgage experience that combines speed, convenience, and security with personal interaction.
When millennials were asked what could most improve the experience, nearly a quarter said they would like the entire mortgage process to move faster and not just parts of it. Millennials not only want the mortgage process to move faster, they also desire more personal interaction. A true digital mortgage combines high-tech service with human touch engagement.