The CFPB recently released research [1] illuminating three of the biggest issues consumers believe complicate the mortgage lending process: there is a lot of paperwork to review at closing, borrowers do not know who to turn to for questions regarding their loan, and the whole process feels painful and overwhelming.
It’s clear that the traditional closing process leaves a lot to be desired in terms of borrower experience. Paper-based closings lead to a lot of time, frustration and uncertainty for borrowers. But what if they were met with a faster process and the freedom to read the closing documents on their own terms?
eMortgage technology is transforming the mortgage industry by providing borrowers with more ease, efficiency and accessibility. As a majority of the industry is still using paper-based closings, lenders who adopt this technology now can differentiate themselves by delivering a quicker, more transparent closing process and an all-around improved experience for their borrowers.
Specifically, this technology is advantageous because it enables lenders to deliver information to their borrowers more quickly, allows borrowers to obtain documents anywhere on any device and speeds up the process of closing a loan.
Deliver Information Quickly
Delivering information quickly is essential in today’s digital age. Now that many financial transactions can be conducted instantaneously, borrowers expect the quick delivery of mortgage documents and instant access to the information they need. eMortgage technology enables a faster delivery of electronic closing documents to borrowers and allows them to view and sign the documents on any device.
Obtain Documents Anywhere, On Any Device
The convenience of being able to sign a document anywhere, at any time, from any device is enticing to potential customers. With a paper-based closing, much of the work of reviewing and signing mortgage documents is left for the closing table, leaving borrowers with little time to understand what they’re signing. The process is lofty and often results in borrowers feeling uninformed about the terms of their loan. With the right eMortgage technology provider, lenders can quickly generate fully-compliant documents specific to each loan and electronically deliver them to borrowers so they’ll have ample time to review and understand their loans. This efficient process helps borrowers feel more educated and empowered, as they can read the documents at their leisure from any device and will have more time to review.
Speed Up the Process
The key to a better customer experience is speed—both speed to close and speed of close. The average closing still takes around 42 days, which can be frustrating for borrowers who are ready to move into their new homes. eMortgage technology significantly expedites the process by automating many facets of closing and connecting the key parties involved, eliminating errors that would have once slowed down the process. The more efficient this process is, the higher the customer satisfaction rate will be.
the largest investments a consumer will make, and it is not one to be taken lightly. From the 40-50 days it takes to close a mortgage to the stacks of paper that seem taller than the house being purchased, traditional closings are no easy feat. Digital mortgages are breaking the closing mold to eliminate much of the frustration and uncertainty for borrowers.