Many lenders have made the shift to digital lending to help optimize their mortgage origination process — and yet, obstacles remain. The average mortgage process typically takes between 30 to 60 days from application to closing, depending on the borrower’s specific circumstances and the mortgage product.
While there are a number of variables that can cause delays, there are multiple solutions to minimize them, help cut turn times, and create a more efficient process. When these pain points are addressed, loan officers can spend more time creating valuable relationships and closing more deals.
As lenders look to continue elevating their digital origination process, what barriers can they look to improve, and how can a digital platform like Blend help them get there? Here are some specific roadblocks they can address.
Common barriers for lenders
1. Team collaboration
When mortgage tools and processes are disjointed, so are the teams involved. If a processor is working in one system and an underwriter is working in another, getting on the same page, keeping track of completed tasks, and updating the rest of the team can be tedious. Collaborating together effectively helps team members quickly and efficiently push loans through the funnel, allowing for more time to help other borrowers and nurture valuable customer relationships.
2. Process efficiency
Lenders and loan teams who use multiple tools and systems throughout the loan process can find it difficult to navigate through each transaction efficiently. Learning and understanding different tools for one process can be confusing — no one wants to jump from tool to tool to get their work done. This opens the door for delays and errors, wasting time that could have been spent on the next customer in the queue.
3. Transparent communication
Communication is key, especially when dealing with one of the most important financial transactions in a person’s life. Not every mortgage transaction involves people in the same location — or even in the same time zone —, which can sometimes cause delays in communication. Team members may be waiting for an answer to a question or for another team member to complete a step that’s dependent on their own work.
Utilizing cloud banking software to remedy the pain points
What’s the solution to these origination hurdles? One answer that many financial institutions have already benefited from is cloud based banking software.
As a single solution for every step of the loan process, Blend’s Mortgage Suite was designed to streamline workflows for lenders. Loan teams can collaborate and communicate with each other on one unified platform from application to close. In addition, automated steps, including asset, income, and employment verification, save time and reduce loan errors, creating a smoother process for all those working on the loan.
While there will always be challenges during the mortgage process, lenders can rest assured that Blend will continue to create innovative solutions to tackle them.