Technology is shaping the way people live their lives. We live in a world with a constant flow of software or app updates, new ideas, or new devices. Many consumers are willing to embrace the digitizing of their lives, and that includes how they interact with lenders, including digital mortgages. The lenders that are using digital components are seeing both faster processing times, and lower default rates, too. In a study by the Federal Reserve Bank of New York it was found that technology-based lenders process mortgage applications about 20% faster than other lenders, while decreasing the default rate by about 25%. In the lending industry where time can very literally translate into money, this is a significant improvement.
Borrowers and Digital Mortgages
Borrowers want to have more digital touchpoints, and lenders are recognizing technology is making their job faster, safer, and more efficient. It’s no wonder that digital mortgages are entering the lending space. Digital mortgage trends are shaping the way lenders and borrowers interact and do business. For example, 74% of all borrowers used an online portal to work with their lender. This significant portion of borrowers are showing us that they prefer the convenience of digital interactions, and many lenders are taking note. In the last 2 years, more than 50% of all loan applications included online or mobile components. All lenders should take note of borrower behavior but also analyze how best to incorporate digitization in the lending process for the best experience for the borrower while also positioning the lending institution to grow safely and efficiently.
Digital Mortgage Trends Infographic
In light of the trade show season, we have compiled a few stats on digital mortgage trends and assembled them in the infographic below. What technology are you thinking of implementing? How is technology and borrower demand influencing how you do business?
Click the image below to enlarge the infographic.