The mortgage lending market has certainly been challenging. As we continue to see rising rates, slower loan volumes, and higher costs of credit for borrowers, it’s more important than ever for lenders and financial institutions of all sizes to be thoughtful and intentional about how to profit in these conditions. Luckily, consumers across the financial services industry are telling us exactly what they want—a borrowing experience that is easy, transparent, and personalized.
Mortgages, just like everything else, are going digital. In fact, a Forbes Insights Survey shows that 82% of 391 banking and lending executives surveyed say digitization is transforming key home mortgage processes.
Jim Deitch—certified mortgage banker and CEO/founder of Teraverde®— shares his insight on SaaS mortgage technology and the opportunity financial institutions have to facilitate a more valuable, personal, and profitable relationship with borrowers through this investment.
Deitch expresses that “one of the biggest opportunities for banks and credit unions is to address the fear that Gen Z and millennials have because it’s a really difficult time in the housing market. They want to buy a home, but there’s a lot of confusion and fear about what’s happening with interest rates and what’s the right product.”
Strategically investing in SaaS mortgage technology and updating your people and processes to adopt that technology, empowers financial institutions to address these concerns more effectively, providing financial institutions with the tools needed to create that frictionless digital experience. And combined with your broad portfolio of real estate lending products, you’ll provide the consultative approach borrowers need to help them understand all their options and get into their home in an affordable, easy, and comforting way.
Deitch explains, “Leaders face a real challenge. The way of doing business in the past, in which a large component of mortgage banking cost was labor, just doesn’t work anymore. Technology being applied to reduce the touch labor in operations can rapidly provide better customer service, lower costs, more competitive pricing … [and] happier originators and all of those things combined can give an originator a competitive advantage to pull through this difficult market.”
Improve Your Digital Mortgage Experience
The same Forbes Insights Survey notes that 78% say the introduction of digital processes and advanced analytical tools to the home lending industry will lead to improved decision making, enhanced security, and better outcomes for borrowers. The figure reaches 94% among leaders and 88% among CEOs.
Designed with financial institution requirements and borrower expectations in mind, MeridianLink® Mortgage helps facilitate the digital transformation of mortgage lending processes. Our cloud-based mortgage loan origination solution helps financial institutions quickly and accurately process loans, open mortgage accounts, and truly go 100% digital with automated pricing, extensive third-party integrations, and customizable workflow automations.
In today’s market, mortgage lending is especially challenging. Yet, it’s more important than ever for financial institutions to be deliberate about how to profit in these conditions. Discover more tips on how financial institutions like yours can profit from opportunities in residential lending by downloading our checklist below.
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Connect with us to learn how MeridianLink® helps our customers streamline loan origination and improve borrower experiences with MeridianLink Mortgage.