Mortgage loan

The Covid 19 pandemic has virtually affected every sector in the economy. Some of the most hit organizations are in the banking and lending industry. Among these businesses is the mortgage industry. Being a long-term lending market, the inability to pay has affected revenues and growth plans for most of the players in the industry. As the market starts to pick up again, there are a few steps that you can take to recover your mortgage company from the pandemic. Here are a few tips.

1. Lower Costs by Using Self-Service Tools

Many customers are flocking customer centres to renegotiate terms of the loan or take advantage of the mortgage holidays offered by the lenders. Lenders have two choices; increase the number of customer service personnel in your call centres or use the available technologies to deliver the services remotely.

Some of the self-service tools that you can leverage to lower your operating costs include chatbots, interactive voice response, online forms and text self-services chatbots and IVR offer a human-like customer experience, just like speaking to a customer service representative. With the onset of AI technologies, you can help get solutions to each customer by tracking their behaviour on the page. All this costs a fraction of the cost of training and hiring customer representatives. Find out more on these tools.

2. Make the Mortgage Loan Processing Fast

Processing a mortgage loan takes various stages from the origination, valuation to the funding. Each of the steps is vital to ensure that the loan is advanced to the right customer. However, you may expedite the process through such initiatives like adding electronic components to the application process. Customers can also use electronic signatures to sign forms that require filling without a physical examination.

You can also reduce the volumes of paperwork by allowing customers to send scanned copies of some documents, as long as you have a way of verifying them. If management teams seat to approve loans, such meetings can also be made online to save the cost of travel and time spent in meetings.

3. Embrace New Sales Channels to enhance Onboarding

Over the years, the mortgage industry has been reluctant to use digital tools to reach the market. However, the pandemic has brought about a shift in the thinking of many industry players. One of the new thinking is embracing new sales channels. First, embrace the increased use of social media platforms such as Facebook and Twitter, engagement through professional platforms such as LinkedIn and paid advertisement.

You should also engage the customers by setting up customer service on social media platforms. Take your time to segment the market into various segments and create a unique offering for each. This helps in forming marketing objectives specific to customer requirements.

4. Make the Loan Onboarding Process Easier

Mortgage loan applications are one of the most document-intensive lending processes in the market. There are over 25 types of documents involved, most of which are involved in the corresponding lending. It is essential that there is a standard procedure to process the high number of documents so that there is always the relevant information and the right data to move to the next stage. You can make the onboarding process a lot easier by streamlining the process of submitting and verifying the documents so that customers do not have to wait for long for the manual verification process.

5. Use the Blockchain Technology in Loan Origination

The blockchain technology uses a peer-to-peer verification process to update any change in data across all other terminals. This ensures that the information present is up-to-date and incorruptible. This technology can assist the mortgage industry in making the origination process fast and secure.

Here is how the process can work. During the origination process, blockchain can give quick access to the customer’s financial information, including credit scores, tax returns, asset holdings and current loans. Besides, any data on past property valuation and status of the land can also be accessed with ease. You can also use a distributed ledger to make credit and property valuations via third-party players. Such a process can reduce the risk of title and lower the cost of both the title insurance and valuation. Besides, it can reduce the loan processing time.