The Future of Mortgage Banking

The future of mortgage banking has always been reliant on industry leaders proactively seeking new opportunities to grow their business and leverage technology. Finding solutions that help the customer make informed decisions and giving them access to information and resources is vital.

The mortgage world is a lifelong business and nurturing long-lasting relationships with our clients is essential. It doesn’t just stop when the deal is made, we need to continue to empower our customers. Additionally, constantly adapting to the changing landscape requires investment in people to prepare our teams for tomorrow today.

Going into 2020, this year was looking great for our industry. We had no idea that it would be even more than we expected. Though it has been challenging at times to face new obstacles and confront the pandemic with optimism, lower interest rates and a rising attraction for equity investment have given many loan applicants the opportunity to refinance or rethink their investments. But with all of this, we know there is still crazy uncertainty waiting around the corner. All we can do is be ready for anything.

Innovation Is Key

Technology will continue to drive the momentum for the industry for the foreseeable future. The virus will eventually go away, but the need to continue evolving the tech of our industry will not. Technology has become more important than ever due to social distancing and working from home, but that doesn’t have to be a disruption. Having a greater affinity for innovative resources can help any company weather this storm.

Many firms that were really ready for the pandemic are thriving. By adopting tools like e-conferencing, electronic binders, and other systems before they were even needed, businesses have been able to run mostly unencumbered. This principle will surely hold true for the future as well. Companies must continuously innovate because when they don’t adapt and grow with the changing market, they risk becoming irrelevant or suffering uncompetitive margins. That’s why innovation is the cornerstone of any hopeful mortgage strategy.

Going forward, the industry will need to fully integrate with eClosing systems and use Remote Online Notary (RON) as a matter of course. This would allow consumers to eSign all closing documents and would eliminate the need for face-to-face interaction. Using video conferencing, multifactor authentication, and eSignatures, customers can get their loan documents processed and notarized from their home.

From a digital standpoint, there are many other ways to improve the process for homeowners and originators. Mortgage companies need to implement these to allow us to help more people with less cost. Lenders should investigate all avenues of progress possible, but tech for tech’s sake can be an expensive trap if we’re not careful. If the goal is to build technology that really helps deliver value, then it is something worth investing in.

The Consistency of Change

The key to adapting in uncertain times is to expect constant change and to strive for constant improvement. The mortgage industry should take this to heart because we never know what will be thrown at us. Everything changes, and the current environment is the perfect example of this. But the pandemic isn’t the only example. The Great Recession, 9/11, the dot-com bubble are all events that catapulted the market into uncertainty. It’s important to be aware of the change and be prepared to adapt accordingly at a moment’s notice.

Though we all want the silver bullet, software app, or magic wand that fixes everything, lowers errors, increases margins, and works 24/7, such a thing does not exist. Mortgage companies can certainly do their best to be on top of the latest technology and tools and ensure they are up to date, but at the end of the day, there is no replacement for experience and knowledge.

Don’t Forget Your People

In the mortgage industry there is a…