How Technology May Simplify the Mortgage Process
If there is one industry that has been slower than most to progress into the digital age, it’s the mortgage industry. Traditionally, mortgage companies have dealt primarily with paper, but things are changing as more and more in the field are embracing new technology trends that are designed to help make processing loans quicker and more efficiently.
If you want to make sure that your mortgage company is at the forefront of technology, then here are five ways technology trends are impacting your industry in 2022.
Virtual Home Appraisals
With an abundance of homes on the market and a shortage of home appraisers, the backlog of homes needing appraised was bound to happen, and it has. But technology is coming to the rescue as more and more lenders are accepting virtual home appraisals from appraisers in 2022.
The reason this is happening is because in October of 2021, The Federal Housing Finance Agency announced that remote home valuations can be substituted for some traditional appraisals, meaning appraisers won’t be required to visit properties being sold or refinanced. With these “desktop appraisals” becoming more commonplace, appraisers will be able to turn appraisals around quicker, so lenders and buyers can avoid having to wait.
Automated Loan Application Updates
A few years ago, Domino’s incorporated a handy pizza tracker in their ordering app that allowed their customers to track the progress of their order in real time. This type of automated update technology is already being utilized by some mortgage lenders across the country and in 2022, it’s expected to grow in popularity.
This tech makes it possible for lenders to automate certain processes and provide mortgage applicants with a way of following the progress of their application in real time with the ultimate goal of providing yes or no decisions faster than the usual Fannie Mae and Freddie Mac standards.
Real Estate Firms Backing Cash Buyers
There’s no doubt that cash buyers rise to the top of any bidding war. In fact, a lot of sellers will even accept the sure sale of a slightly smaller cash offer over a financed offer simply to avoid the risk that the financed offer can potentially fall through. Further, there are some enterprising real estate firms out there that are making it easier for buyers to make those cash offers, even if they don’t have all the cash they need on hand.
Here’s how it works: a buyer wants to make a cash offer, but doesn’t have the cash available. The firm steps in and makes the cash offer on behalf of their client. If the offer is accepted, the firm ponies up the cash and then finances their deal directly with the buyer. This practice gained popularity during the coronavirus pandemic, and it looks like it isn’t going away any time soon.
Open Banking to Become More Prevalent
Open banking is technology that allows lenders to examine a loan applicant’s account data in real time. In its current state, this system does not allow lender to perform a complete income assessment, but it does significantly reduce the time required to do one, with reduced data entry requirements and greater accuracy.
The improved efficiency of open banking can dramatically improve the customer experience when it comes to applying for a home loan. Eventually, the technology will be able to reduce the number of working days between application and lending, which typically averages 40 days, to just 18.
Blockchain and NFT Property Purchases
No discussion of influential technologies in 2022 can occur without talking about blockchain, the innovation that underlies bitcoin and other cryptocurrencies. Currently, blockchain isn’t a major player in the mortgage industry, but before the year’s end, that could all change. In fact, some industry insiders are also predicting non-fungible tokens, or NFTs, will expand into the world of real estate as a means of using digital assets to purchase real life property.
However, how soon this occurs, or if it even does, remains unclear due to the securities laws in this area, but it is something to keep your eyes on.
Need Help Finding Mortgage Leads? Partner with RGR Marketing
The 2022 housing market is nothing if not unpredictable. So, having access to reliable mortgage leads is one way to find some consistency in the turbulent waters. At RGR Marketing, we are a leading source of high-quality mortgage leads. Using our 20-plus years of experience, we provide mortgage businesses with exclusive access to high-quality and hyper-targeted leads that have been scrubbed and verified for accuracy.
Purchasing mortgage leads is a trend that never goes out of style because it’s proven beneficial, so contact RGR Marketing today. We’ll provide you with the mortgage leads you need for your business to grow.
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