Redefining Post-Pandemic Mortgage Industry with Digital Transformation

The COVID-19 pandemic has brought drastic changes in the mortgage industry, increasing the costs, customer expectations, and impacting other business-critical factors. The year 2022 sees an ongoing spike in inflation, as indicated by CPI. The Federal Reserve’s hike in mortgage interest rates is a critical factor adding to the costs.

The National Association of Realtors reveals that higher mortgage rates will inevitably dampen home sales in the coming months and also slow home price appreciation. Here’s an outline of the common issues faced by the mortgage industry in the post-COVID era.

Top Challenges for Mortgage Lenders

Stringent regulatory norms along with the COVID-19 crisis have created numerous problems for mortgage lenders. The customers’ growing need for a hassle-free mortgage application and automation further aggravate the situation. Here are some of the challenges for mortgage lenders:

• Rampant systemic misconduct during the mortgage servicing process
• Difficulties in the onboarding process
• Difficulty in verifying borrowers’ identity and contact information
• Errors in tracking mortgage applications
• Tedious escrow analysis process
• Inability to process many mortgage applicants and customers

Digital transformation can help the mortgage industry stay afloat and compete in the current scenario. As per a study conducted by Forbes, about 99% of lenders believe that digitization can increase efficiency and profitability by simplifying the entire mortgage process. It can transform the operations to meet customers’ expectations with speed and agility.

To undergo digital transformation amid the changing industry trends, mortgage lenders need to implement digital solutions based on intelligent automation and other AI/ML-powered technologies.

How Digital Transformation Fuels the Growth of the Mortgage Industry?

Digital transformation helps mortgage loan lenders eliminate the tedious manual processes with the help of artificial intelligence, machine learning, data analytics, and digital content management. The goal behind this digital transformation is to provide a seamless and delightful experience to customers.

Here are some of the excellent ways digital transformation is changing the mortgage industry:

1. Crafting an Excellent Customer Experience

Using intelligent digital solutions like chatbots and digital KYC, mortgage lenders can create a smooth loan application experience for customers. For example, automating the loan application processes can speed up the loan disbursal process, enhancing the customer experience.

Customers expect a consistent experience across all channels including phone, email, and chats. They are lured by minimal loan processing timelines and 24×7 customer support. Digital transformation empowers mortgage lenders to create and deliver a hassle-free experience for customers using tools and utilities such as mortgage calculators, faster document processing, and more.

2. Operating Efficiency and Strategic Alignment

Digital transformation introduces businesses to a holistic strategy that aligns all the processes and helps them achieve their goals seamlessly. It brings the entire team including board members, executives, sales representatives, and others on one page to facilitate uninterrupted collaboration.

For example, AI-powered technologies such as Optical Character Recognition (OCR) can help lenders extract information from vast formats such as scanned documents, printed copies, etc. It reduces manual documentation efforts, allowing them more time to focus on strategic tasks.

3. Automating the Mortgage Value Chain

With the help of digital transformation, lenders can automate the mortgage life cycle to generate leads, monitor customer behavior, manage loan portfolios, and a lot more. It leverages ground-breaking technologies such as artificial intelligence and machine learning to improve efficiency and reduce human errors.

Accelerate Digitization with Digital Knowledge Operations™ (DKO)

Anaptyss provides hands-on domain-led consulting with a tailored implementation of intelligent digital solutions to speed up the mortgage lifecycle, right from loan application until repayment and closure. Whether it is origination, underwriting, or closing, these intelligent solutions enable efficient execution with cost-effectiveness and accuracy, elevating the customer experience.

Based on the proprietary Digital Knowledge Operations™ (DKO) framework, Anaptyss deploys pragmatic and practical solutions that allow mortgage lenders to expedite the entire forbearance procedure by automating the request and verification processes. This helps borrowers to initiate the procedure by themselves with no or minimal help from the middleman.

Additionally, Anaptyss can help lenders reduce costs, mitigate risks, and expedite documentation and service delivery.