How Mortgage CRM is providing solutions to overcome the business challenges?

The mortgage industry is demanding effective communication between the customer and the employees, also discerning the need for personalized services by the customer. A wide range of mortgage CRM software is available in the market and all are created with their unique functionalities. It is a significant assessment for the loan officers to choose the best CRM software for their mortgage business and overcome the challenges. Fintech startup inflooens has designed the world’s best “Loan Team Optimization Platform” that is integrated with Salesforce enabled CRM software used in Loan Origination System. Our CRM software is cost-efficient, reliable, and reduces the trammels of the organizations. 

The software is uniquely designed that can be utilized for marketing, sales management, and business development. Mortgage industries value the relationship between the customer and the business and they continuously strive to strengthen the relationship. This commonly demands a specialized approach and CRM software better than a generic one is the initial choice of the mortgage industry. Our Fintech startup inflooens CRM software is particularly designed for the mortgage and finance industry that leads to better Return on Investment (ROI) for the business. To sustain in the highly competitive market, the mortgage industry demands loan pipeline management for better loan processing. 

Role of the CRM software in Mortgage Automation

The main venture of CRM is to provide mortgage automation in marketing, convert leads, and engage with more business enterprises. The foundation of any successful business is its relationship between the business and the customers. The software allows the loan officers to attract more leads through form submissions and engaging with more customers. It is integrated with the lead capture forms and gathers leads by assembling the customer’s data by a variety of means. Once the leads are congregated, CRM software works on these leads and automates the response. Our quality CRM software is an essential asset for any mortgage business to prosper and sustain. 

Apart from simplifying the lending process, the CRM software has eliminated the manual ways of operations and leveraging the ways of mortgage automation. They have paved the way for data collection & analytics and marketing automation to ease the relationships and promote the business brand development. It ensures regulatory compliance and allows lenders to stay updated with new industry compliances for mortgage automation. Drip campaign marketing is another greatest resource for mortgage companies and facilitates sharing the messages with partners and clients. It forwards the automated emails and determines the loan management by tracking the real-time loan status and viewing the loan reports anytime, anywhere. 

Why is our CRM the best for Loan Origination System?

For better loan management, Loan Origination System is integrating with the CRM software for better solutions. A synchronized mortgage lending process cannot be achieved merely with Loan Origination System. Every business needs a mortgage CRM software to integrate with Loan Origination System to avoid any impediments in the lending process. Loan officers entice potential borrowers through social media campaigns, paid ads, and third-parties. The captured leads are asked to fill the form and their details such as income, employment status, and tax returns are recorded. The CRM holds the significant leads and eliminates the disqualified ones to avoid wasting the time of the sales team. Both the applications also incorporate for mortgage application and loan processing, where the customer’s data is stored in a unique location to easily access whenever required. While selecting a mortgage CRM, choose the one that consolidates with Loan Origination System to manage the mortgage through a centralized system that connects both the applications. 

Conclusion

Our team aim to develop Virtual Assistants to make inflooens the smartest CRM in the world. We solely focus to empower your mortgage business with advanced technologies to focus on smart business outcomes. The software provide lead management & tracking and it makes your life easier by automating everything in the loan lifecycle. It helps you to save both time & money by storing the significant information related to data such as transaction records and transaction date & time. It precisely monitors your business data and pulls out the significant data insights from it. Customer retention is the significant aspect of the software and your clientele will be immensely gratified with your services. With the CRM, your business can have a better outlook for growth. Our software is scalable and is able to handle a large quality of data of the users. With enormous space and great operational power, it maintains all the functionalities. 

Fintech startup inflooens “Loan Team Optimization Platform” is integrated with client portal and sales performance management to maintain transparency at every stage of the loan process. 

Why invest in mortgage automation and cloud-based systems?

Instant service and faster turnarounds are the expectations from customers today. Mortgage Process Automation and cloud-based loan processing systems are proving to be assets in the mortgage industry. Outdated legacy systems are slow in loan processing, and paper-dependent systems are prone to errors. Our previous blogs have talked about Mortgage Blockchain and Mortgage Process Automation transforming the mortgage industry. Here, we will explore how investing in mortgage automation, cloud-based systems will benefit your lending business.

FinTech Startups disrupting the Mortgage Industry

During the COVID-19 pandemic, many financial institutions shifted their businesses to online services to keep in touch with their customers. FinTech startups are using mortgage blockchain to make loan applications faster and more affordable. There is transparency in the lending process. Some FinTech startups are providing Mortgage blockchain-based end-to-end solutions. It involves quick and secure data retrieval and validation from third-party providers, including government agencies. Mortgage blockchain technology is allowing the entire mortgage underwriting to be digital. FinTech startups have to meet customers’ expectations of speed, personalization, and transparency in the mortgage processes.

Image 1-Statistics in FinTech space in 2020

Image source: https://atos.net/wp-content/uploads/2018/07/ATOS_LOOK-OUT_BANKING.pdf

Mortgage Blockchain and FinTech

According to experts, the global FinTech blockchain market may grow to $9.2 billion in 2025 from $1.23 billion in 2020. There is an upward trend in using technology like Artificial Intelligence (AI) and Machine learning (ML), Blockchain, and RPA in financial services. According to expert opinion, these technologies will reduce the operational costs by 22% by 2030. Blockchain technology is helping in combating any advance cyber attacks in financial services. Mortgage Blockchain is countering the challenges faced in the mortgage industry by creating infallible transaction records.

Adoption of a cloud-based Loan processing system

A cloud-based Mortgage Loan Origination system enhances the entire loan origination process. Mortgage companies require cloud-based technology for the incorporation of encryption and security features in the Mortgage LOS platforms. Customers can access cloud-based LOS from any device such as a smartphone, tablet, etc. Cloud-based LOS has several benefits such, as

• Management of documents related to the mortgage process to be stored and secured in a centralized system
• Customer data and records are authenticated and verified by systems
• Improvement of customer experience by reducing paperwork and overall processing time, thus reducing the high processing fee
• Quick implementation of the cloud-based Loan processing system as there is no need to download software
• Ensures reliability to the user as the data is stored on a centralized server and made available at any time
• Easy accessibility of data as it is stored on a cloud server and is available on any device at any time
• Automation of all processes gives ample time to the lenders and borrowers for exploring other loan products

Image 2- Benefits of cloud-based mortgage LOS

Cloud technology allows flexibility to manage applications on the best-suited infrastructure. Legacy systems do not work in the cloud. By adopting cloud-based Loan processing systems, mortgage companies and financial institutions can cut operational costs. The mortgage companies can save the expenses required for hosting data on-site and on their servers. The mortgage lenders can transition to cloud servers with the right resources and technical expertise and reap the benefits. inflooens has the best mortgage LOS that meets the requirements of mortgage lenders. It provides the best customer experience and satisfaction and quick closing of loans.

Effects of Mortgage Process Automation on Mortgage Lending

Mortgage Process Automation tools contribute to a faster processing time of mortgage loans. Mortgage lenders are designing smart workflows to separate tasks between bots and humans. It is helping mortgage lenders utilize the highly valued human resources for tasks requiring human intelligence and judgment. Digital transformation of mortgage loan processing is vital for mortgage lenders in 2021. AI tools like voice assistants and chatbots have assisted mortgage lenders in weathering the COVID-19 pandemic. Mortgage Process Automation is at the forefront of meeting the needs of customers and loan officers. The advantages of using RPA bots enables organizations to tackle mundane, repetitive, and rule-based processes. Examples of these processes include verification of pre-funded data, services such as title, credit, etc. Robotic Process Automation (RPA) and AI provide audit trails and reduce compliance risks. Mortgage process automation has several benefits for banks by transitioning to online-based electronic forms and speeding up customer’s loan application processes. Mortgage Process Automation is managing various mundane but crucial tasks of FinTech firms. Mortgage lenders can improve the efficiency of their mortgage processes by ensuring data accuracy and facilitating regulatory compliance.

Image 3- Advantages of Mortgage Process Automation in Mortgage Lending business

With Mortgage Process Automation, Loan Origination Process is not as time-consuming as before. Documents such as appraisal reports, Title reports are verified, validated, and uploaded in a mortgage LOS. Mortgage loans are closed quickly and efficiently by stacking and indexing all the electronic documents. Each mortgage lending business needs to have to best Loan Origination System, which inflooens provides to its customers.

Finally

Mortgage lending businesses require mortgage automation and cloud-based systems to improve the effectiveness of services. They are transforming the mortgage lifecycle with shorter and quicker implementation. Mortgage Process Automation allows seamless, personalized loan processing. Cloud-based LOS decreases operational costs and increases process efficiency. Cloud-based Lending Systems are customized according to the lender’s needs by Inflooens.

10 Factors affecting Mortgage Pricing Systems

Mortgage Pricing Systems have a critical role to play in mortgage origination. These systems are what decide the rate and amount a borrower should be given for a home loan. Simply put, mortgage pricing systems are at the center of the mortgage lifecycle. We have previously discussed how these systems can be integrated with mortgage CRM and the loan application process. In today’s blog, we will discuss the factors that affect mortgage pricing and how innovation in financial services is making mortgage pricing systems more reliable and efficient.

How Mortgage Pricing Systems Work

The mortgage market is very dynamic. It moves often with many factors affecting the rate offered to individual borrowers. There is no single rate or flat rate concept for a mortgage and each lender has their logic for calculating mortgage pricing. Fintech companies like inflooens, providing mortgage LOS with mortgage pricing systems incorporate customizable solutions for lenders. Let’s look at the key factors that are considered in these systems.

Image 1: Factors Affecting Mortgage Pricing System

1. Property

The type and usage of property are considered for mortgage pricing. Usually, condos, high-rise condos, and multi-rise units have higher interest rates compared to single-family dwellings. Also if the borrower intends to buy the property for investment, it will attract higher interest rather than an owner-occupied property.

2. Credit Scores

The credit score of an individual is based on their credit history. Things like the number of bank accounts, credit card payments and defaults, total debt, and loan repayment history are considered while calculating the credit score. This factor significantly affects mortgage rates as it represents the creditworthiness of the borrower. A borrower with a higher score is likely to be approved for a lower rate compared to one with a lower credit score. For example, a borrower with a credit score of 750 may get a 1% lower rate than a borrower with a score of 650, depending on the calculations of the lender.

3. Loan to Value (LTV)

Loan to Value is the ratio between the loan amount and appraised value to the house, expressed as a percentage. For example, if the appraised value is $100,000 and the down payment made by the borrower is $10,000, then the LTV is 90% ($90,000/$100,000). This ratio shows how much equity the borrower has in the property. A lower LTV typically means a lower mortgage lending rate.

4. Loan Amount

Loan amount is an important factor in deciding mortgage rates. Both, very high amounts and very low amounts can attract high mortgage rates. This is because, high-value loans are riskier for the lender, in case the borrower defaults. On the other hand, with a low amount, the added cost of loan origination is built into the mortgage rate and may add even upto 0.75%.

5. Rate Lock Period

A borrower can lock in the interest rate for a mortgage before the close of escrow. This is usually done 15, 30, 45, or 60 days in advance. Most rates are quoted by lenders for a short lock-in period of 15 days. This means the longer the lock period, the higher will be the rate. This is because there will be less fluctuation in the market in a shorter period compared to a longer one where the risk for the lender will be increased.

6. Loan Maturity/Fixed Period

The borrower can opt for long-term periods of loan maturity, the most common are 15years and 30 years. In the case of a longer loan maturity period, the risk of the bank is higher as the period has more chances of market and borrower uncertainty. For this reason, a shorter loan maturity for fixed rate has a lower interest rate. For exampke, a 7/1 ARM (fixed for 7 years) will have a lower rate than 15-year fixed-rate loan, which in turn will be lower than a 30-year fixed-rate loan.

Image 2: 30Yr vs 15Yr Fixed-Rate Mortgage
Image source: http://www.freddiemac.com/pmms/#

7. Combo Loans

Combo loans are where the borrower takes out two separate loans from the same lender. They are sometimes also referred to as piggyback loans. The way it usually works is that the lender first provides a construction loan to build the property. When the construction is completed, a second loan is granted, usually a long-term fixed-rate loan. This is used to close the first loan and continue monthly payments till maturity. It can save the borrower from paying for private mortgage insurance. On the other hand, Combo loans may have a higher interest rate for the second loan, apart from the additional fees for 2 loans.

8. Processing Fees

Application processing and loan origination is a costly affair for lenders. These costs are passed on to the borrowers and calculated as a part of the mortgage interest rate.

9. Refinancing

Some loans have refinancing fees built-in. These have lower mortgage rates than “No-Cost” refinances because extra fees need to be paid to cover closing costs. Also in the case of cash-out refinancing, when borrowers increase their loan amount, rates are typically higher, depending on the LTV ratio.

10. Reserves

Lenders require reserves for meeting their liquidity criteria. This means that the borrower needs to demonstrate the ability to pay back the loan with bank statements that show sufficient cash availability. This significantly influences interest rates. Higher reserves can result in lower mortgage rates.

Conclusion

Mortgage Pricing Sytems handle complex calculations that take into account various factors. There is a need for smart and intuitive tools to perform these tasks efficiently. With innovation in financial services, technology is at the forefront to enhance these processes. inflooens is the best mortgage origination platform that integrated mortgage pricing systems. These can be customized as per the lender’s requirements to provide the most accurate mortgage rates for borrowers.

How is Mortgage Process Automation transforming Mortgage Back office?

Mortgage Automation is not as simple as other businesses. The mortgage process is complex and often varies from one lender to the other. Today, customers expect digitalization of all services including the entire mortgage process. It is not possible to have complete Mortgage Process Automation without back-office optimization through digitization. In this blog, we will explain how mortgage process automation is transforming Mortgage back-office processes.

Automating the Mortgage Back Office

Having an efficient back office is essential for any business. Back office tasks do not require direct interaction with customers and can be performed efficiently offsite. Mortgage loan approval in traditional back offices usually involves paper-intensive and manual processes. In the absence of automation, there could be manual errors or misplaced documents. Based on the research done by Capgemini Consulting, 60% of customer dissatisfaction sources originate in the back office.

Some of the traditional back-office tasks include:

• Data Storage
• Administration
• Accounting
• Recruitment of staff
• Customer communications
• Risk management; and more.

Automation of back-office services will reduce cost, improve customer experience, and comply with data regulation. Employees of companies will focus on value-added services as they will be free from mundane, repetitive tasks. Automation tools such as robotics, artificial intelligence(AI) are helping to improve the quality of work.

A typical mortgage lending process takes 7-8 weeks of processing time. Mortgage process automation is transforming the mortgage lifecycle by reducing the processing time to few days. By automating some of the manual processes, mortgage lenders can improve customer experience.

Mortgage Process Automation transforming Mortgage back office

Mortgage process automation is addressing mortgage back-office needs by improving data integrity and accessibility. Using Mortgage CRM that easily integrates with LOS is improving the mortgage lending process. Implementing mortgage process automation and data analytics with advanced back-office systems is a part of the Mortgage CRM. Robotic Process Automation (RPA) and Artificial Intelligence (AI) are transforming mortgage back-office services.

Robotic Process Automation

Robots (bots) address all the back-office operations of the mortgage industry. Bots seamlessly and accurately connect to third-party applications and reduce redundant tasks. Mortgage process automation allows scalability of operations and enhances customer experience. Robotic Process Automation takes care of Data entry, task assignment, Information gathering, and automated email notifications. Data storage and management are an integral part of mortgage back-office processes. It helps in communicating with underwriters, appraisers, lenders, and customers for optimizing the mortgage lending process.

Image 1: Benefits of RPA in mortgage back-office services

Mortgage process Automation can ensure compliance with all the necessary federal regulations. It helps in auto-validating mortgage records and hence reducing loan processing time.

Artificial Intelligence and Back-office efficiency

Operational efficiency and borrower experience in the mortgage industry is improving due to artificial intelligence. Artificial Intelligence (AI) can process documents and data, read and compile data from various sources. AI-based document processing handles document types, both structured and unstructured data. AI systems operate to provide responses to customer queries and improve lending operations from origination to servicing. AI is transforming back-office processes by streamlining data and helping to close loans faster. AI processes help in improving other stages in the mortgage lifecycle like underwriting and compliance workflows. Read more on this in our earlier blog.

Image 2: AI-improving back-office processes

Document management is one of the bottlenecks in mortgage loan processing. AI-powered systems that help remove bottlenecks in loan processing will provide an error-free and quality lending process to mortgage lenders.

How is Mortgage CRM transforming Mortgage back-end processes?

Mortgage back-end processes involve standardizing practices, maximizing teamwork, eliminate risks and compliance errors. Having a state-of-the-art Mortgage CRM reduces operational costs, improves resource allocation, and brings transparency to the systems. A robust mortgage CRM platform provides access to the necessary data to the parties involved in the lending process. Friendly and effective communications with the borrower improve the business-customer relationships. Mortgage CRM platforms help in managing processes related to customer relationships. It helps in giving accurate documentation of customers for faster closing of loans. We have explored the different nuances of an effective Mortgage CRM in our earlier blogs.

Mortgage lenders can automate marketing and stay in contact with their customers using a customized CRM platform. inflooens provides the best Mortgage CRM in the market that gives information at your fingertips.

Finally

Mortgage back-end services must work flawlessly in tune with the front office services. Toward this purpose, Mortgage Process Automation plays a significant role in transforming mortgage back-end services. It helps in bridging the gaps in the back-office processes of lending organizations. A customized Mortgage CRM that skillfully works with clients and understands business needs is vital for mortgage lenders. inflooens has the best-in-class services that cater to transforming your Mortgage back-end processes.

Loan Origination Systems – Keeping Small Banks and Community Lenders Competitive

Lending has always been a competitive space, especially for the home loan mortgage segment. It can be difficult, especially for small lenders, to maintain an advantage in the market without tools like Loan Origination Systems. We have discussed the features of Mortgage LOS in our previous blog. Things have drastically changed over the past few years as the market has become more crowded with the rise of FinTech lenders. According to the Business Insider, the share of the Top 5 banks in mortgage originations has fallen from 50% in 2011 to 21% in 2019. This demonstrates the changing industry trends. Small Banks and Community Lenders are not only competing with each other, but with alternative lending agencies. This includes digital giants who want to capitalize on the opportunity. In this blog, we will discuss how Loan Origination Systems can turn around the operations of small banks and community lenders.

Image 1: Alternative Lending Key Facts

What Small Lenders have going for them

• Existing Relationships Small Banks and Community Lenders have years of experience in lending and know the market well. In many cases, they are established and trusted parts of the community. This is an edge over alternative and bigger lenders. Small lenders can also provide a more personalized experience to customers, which are always appreciated for repeat clientele and referrals.
• Small Mortgages This is a great opportunity for small lenders as bigger financial institutions may not be interested in lending modest mortgages. This serves as a niche for community lenders and small banks.
• Flexibility Historically credit unions and smaller banks are able to provide more competitive rates for lower credit scores compared to bigger lenders.

Enhancing Competitive Edge with Mortgage LOS

As we move towards a more digital world, small lenders must move with the times to stay in the game. Loan Origination Systems can help transform the mortgage lifecycle to build more reliable and efficient processes.

1. Building Relationships

As mentioned earlier, relationships are one of the strong suites of small lenders. To further strengthen these relationships, loan origination systems can help in lead management. From follow-ups and appointments, to campaigns and record keeping, Mortgage LOS can make the task simpler for lenders and make information at your fingertips a real possibility. inflooens is the best mortgage loan origination system that makes data discoverable and easy to use.

2. Competitive Pricing

Traditionally small lenders have a higher flexibility in pricing because there is less red tape. With Loan Origination Systems it is possible to make calculated decisions regarding loan pricing for individual customers. The platform will consider the credit history of the borrower as well as prevalent and predicted market conditions to suggest the best mortgage pricing. This enables lenders to make the best offers without risking too much. inflooens integrates mortgage pricing with mortgage LOS seamlessly to transform the mortgage lifecycle.

3. Automated Workflows

Mortgage Automation can greatly reduce the burden of repetitive tasks. The best loan origination systems allow customization of workflows as suited to any type of lender. This helps in minimization of operational costs and faster application processing. Automated workflows can boost revenue for small lenders by reducing overhead costs and dedicating resources to building customer relationships. To know more about workflow management, read our earlier blog.

4. Streamline Loan Applications

Online applications are increasingly becoming the norm. There are many benefits to this approach. Not only does it allow the customer to apply from any convenient location, but it also reduces the burden of documentation on the lender. The documents and information collected online can be stored in a data repository and reduce errors or delays due to incorrect or lost papers. The best loan origination systems, like inflooens, take the application process even further to scan, verify, and check applications for loan eligibility.

5. Compliance

In a heavily regulated industry, like mortgage, compliance measures account for a significant amount. Especially for small lenders, it may be difficult to be audit-ready and maintain records without incurring huge costs. Technology can assist here as well. inflooens Loan Origination System helps lenders to keep their records up-to-date and be compliant as per the latest regulations at all times.

Image 2: Mortgage LOS Benefits

Conclusion

Technology in mortgage is here to stay. Big lenders and alternative lenders are heavily invested in technology to drive their growth. Small banks and community lenders must recognize this shift in business and adopt modern loan origination systems to improve their processes and customer experience. This is not only a wise decision for operations and relationships, but also for reducing costs and increasing revenue. inflooens mortgage LOS is flexible, scalable, and economical while providing the best features and tools for lenders.

4Cs of Mortgage and Innovation in Financial Services

Underwriting is an important step in the Mortgage Origination process which determines whether an applicant will be granted a loan or not. Any application is thoroughly verified and validated to evaluate the risk a borrower poses to the lender. Essentially, the underwriter has to carefully examine if the borrower can repay the mortgage. We have discussed the underwriting process and ways to improve it in an earlier blog. In this blog, we will discuss the 4Cs of Mortgage, which are the key factors for a mortgage decision.

Equal Borrowing Opportunity

Before diving into the 4Cs, we need to understand how mortgage equity is ensured by law in the US. Two acts have been created by the US Government for this purpose.

• Equal Credit Opportunities Act (ECOA) – This was enacted in 1974. ECOA makes it illegal for any lender to discriminate against any applicant based on race, color, religion, national origin, sex, marital status, or age. If an individual is creditworthy, a mortgage should be equally available to them.
• The Fair Housing Act (FHAct) – This act prohibits discrimination against individuals in case of any residential realestate transaction such as loans, purchase, selling, renting, brokering, or appraising.

Now that we have discussed that all individuals deserve an equal opportunity at securing a mortgage, it is important to discuss the factors that ultimately decide whether an applicant will be granted a loan or not.

Image 1: Standard Logo used by Lenders and Housing Providers

The 4Cs and impact of Technology

The 4Cs of mortgage have been around for a long time, with underwriters depending on these factors for denying or granting loans. Innovation in financial services has made it possible to utilize technology for underwriting and make the process more reliable and efficient. Let’s look at the 4Cs one by one.

Image 2: The 4Cs and impact of Technology

1. Credit

The repayment ability of a borrower is assessed by looking at their payment trends. Payment history, cumulative unpaid debt, revolving credit, and other factors are analyzed to allocate a credit score that reflects the buyer’s potential payment probability. Borrowers with a decent credit history are often given lower interest rates than those with lower credit scores. During the initial stages of a loan application, a loan officer usually conducts a credit check to determine possible problems based on the credit report.

With technology and mortgage origination platforms like inflooens, it is possible to automate credit checks. Based on the identification information provided by the applicant, the system can automatically check their financial history and provide a credit score. Lenders can set parameters for application rejection and customize the platform according to their needs. Mortgage Loan Officers and Underwriters need only intervene in specific cases that can be flagged by the system. This makes the underwriting process convenient and superior.

2. Capacity

To evaluate the capacity of an applicant, the borrower’s current income is compared to their expected debt. This factor decides whether or not the borrower will be able to repay the loan. Lenders use two ratios to determine a borrower’s capacity: the Housing Ratio and the Debt Ratio. Underwriters look at the client’s debt-and-income ratio to see how they can keep up with the payments on a regular basis. The borrower’s employment and the time they have been in their current jobs are also important factors under consideration.

inflooens is a reliable and efficient mortgage origination platform that provides information at your fingertips. It uses advanced technology to display relevant information about borrowers, including calculations like the housing ratio and debt ratio. With intuitive and interactive dashboards, underwriters and mortgage loan officers get a 360-degree view of their customers to make informed choices about mortgage applications.

3. Capital

The borrower’s assets are taken into account in this component of the 4Cs. Cash in reserve and cash in trade are scrutinized by underwriters. They even look at bank statements to see where the closing funds will come from. Borrowers can use gifts as a down payment as long as they have a clear paper trail to back up their claim. They must also keep track of all big deposits into their accounts. The origin of large amounts of money needs to be disclosed to the loan officer. The underwriter examines the assets to ensure that you have enough money to cover the down payment, loan fees, closing costs, escrow, impounds, rainy day funds, and moving expenses.

inflooens makes it possible to easily record this information for all applicants and make it available to underwriters or loan officers whenever they need it. With a discoverable and easy-to-use user interface and a reliable platform performance, the chances of loss of data are negligible. In conventional systems, borrowers may need to provide paperwork many times at different stages of the mortgage origination process. inflooens ensures that the process is up-to-date and integrated so that there is a single source of truth for all applicant data which is error-free and accessible.

4. Collateral

Collateral, also known as a home valuation, considers a variety of variables before assigning a value to a house. The location of the property, its size, the condition of the house, the cost of restoring it, and the cost of comparable homes are all factors to consider. The aim of a lender is not to foreclose on the house, but to provide protection that can be used to safeguard the loan if the buyer defaults. The buyer may want a house that the investor is not keen on regardless of credit, capacity, or capital.

With mortgage origination platforms like inflooens, the lender can circulate guidelines and directions for mortgage loan officers and underwriters. These can be customized as per local market needs based on the age of the property, area or location, and potential appreciation of the house. Such information can be shared instantaneously across all markets to make sure that everyone involved in the lending process from underwriters to field mortgage loan officers have information at their fingertips.

Mortgage Blockchain, Solving Mortgage Industry’s Data Problem

In these trying times, there is a push for digital transformation by financial organizations and mortgage lenders. Blockchain technology is a game-changer in the Mortgage Industry with its data security features. In this fast-paced world, outdated traditional mortgage processes are replaced by Mortgage Blockchain technology. Mortgage Blockchain is transforming the data issues plaguing the Mortgage Industry. We have talked in our previous blog about the benefits of blockchain in the Mortgage Industry. Here, we will explore how Mortgage Blockchain is solving the Mortgage Industry’s Data Problem.

Data Problems in the Mortgage Industry

Most people feel that home mortgage processes are lengthy and tedious financial transactions. Borrowers, lenders, insurers, appraisers, underwriters, loan officers etc., depend on large amounts of data from various sources. The loan-level data is acquired inconsistently from unreliable sources. There are high chances of mortgage fraud due to data security issues. Manual entry of data, long processing time, and information about the customer’s financial credibility is posing a challenge to mortgage lenders. Data challenges in the mortgage industry have increased during origination, process, and fund transfer. There are data regulation problems concerning compliance checking. The answer to these data problems is Mortgage Blockchainis bringing about Mortgage Transformation.

How is Mortgage Blockchain causing Mortgage Transformation?

Blockchain brings transparency to the mortgage process by using cryptography. Mortgage blockchain technology can synchronize mortgage transactions with the related data. The chief features of blockchain technology include:

1. Digital Ledger Technology (DLT)

Using Distributed Ledger Technology (DLT), blockchain is decentralizing all the transactions. The storage of all transactions includes electronic evidence of the mortgage process. An open, secure DLT provides accurate, real-time information. It uses blocks (records) across many nodes (computers) to record transactions.

Image 1: Blockchain technology process- increasing transparency in the mortgage market

Each transaction in the mortgage blockchain is validated, verified, and combined with other transactions of other applicants. It forms a block of data. All transactions are available in a ledger. It is accessible to the parties involved in the different stages of the mortgage process in real-time. Data is encrypted, and only the parties involved in specific transactions related to their work can read or write to the ledger. DLT is simple as only a single data entry is required to streamline the mortgage process. The data is encrypted and offers no scope of tampering by companies or lenders. Transaction in the mortgage blockchain is validated, verified, and combined with other transactions. It forms a block of data. All transactions are available in a ledger. It is accessible to the parties involved in the different stages of the transaction in real-time. Data is encrypted, and only the parties involved in specific transactions related to their work can read or write to the ledger. DLT is simple as only a single data entry is required to streamline the mortgage process. The data is encrypted and offers no scope of tampering by companies and lenders.

2. Smart Contracts

Smart Contacts are codes that are programmed to automate transactions. Smart Contracts verify the loan applicant’s employment, income and liabilities. The Smart contract is automatically executed based on pre-agreed terms. The parties involved in the Contracts are anonymous. Smart Contracts provides data for compliance and reporting to regulatory authorities or auditors.

Image 2: How Smart Contracts work?

Both DLT and Smart Contract features of blockchain technology are solving data problems of the mortgage industry.

Mortgage Blockchain is playing a significant role in the mortgage ecosystem by:

• Assessing loan information for mortgage issuance- is accomplished by examining the risk parameters, collection and data validation.
• Searching, validating property titles and transfers as a part of the closing and renewal process
• Completing the mortgage closing process by having interaction among lenders, title agents, and other parties
• Servicing as required by GSE’s or other noteholders by performing monthly reporting activities as well as managing non-performing loans
• Creating a securitization pool for validation of individual loans against pool parameters and managing pool updates

Mortgage Blockchain lowers the costs to borrowers with no third-party involvement during the mortgage process.

Mortgage Loan Origination System and Mortgage Blockchain

Mortgage lenders use different formats to record data. Sometimes digital records are scanned copies of print documents. Accessibility and reliability of the data are increasing the likelihood of inefficiency in loan origination. Mortgage lenders have to verify many data points such as borrower’s assets, credit score and transaction history. Regulators are expecting loan-disclosing data from loan originators. The underwriting data is not standardized and requires periodic reviews.

Mortgage Blockchain provides better access to data and increases automation in Mortgage LOS. The digitally originated loan is on a ledger (in the blockchain). It is entered automatically into a smart contract. The mortgage blockchain has important underwriting information consisting of borrowers’ credit score, DTI ratio, and other data. The data becomes immutable, time-stamped which reduces the risk of information loss or alteration of data. Mortgage Blockchain improves transparency, traceability and record-keeping during the mortgage process. Mortgage blockchain is disrupting the Mortgage Industry.

Image 3: Storing records in Mortgage Blockchain

Mortgage blockchain can improve data security. A mortgage loan origination system can store and access loan applications as well as approval information. Mortgage blockchain is reducing loan processing time and operational costs. It is because of accessing the same data by an appraiser, underwriter, or any other third party. Adopting Mortgage blockchain is giving a competitive advantage to mortgage lenders. Blockchain technology is transforming the Mortgage Industry by providing the best customer satisfaction. Inflooens has the best Loan Origination System that incorporates all the benefits of blockchain technology.

To summarize

Mortgage blockchain technology is enhancing customer experience and reducing operational costs, and encouraging regulatory compliance. Every innovative technology has some pain points. One of them is, Mortgage blockchain needs the participation of all parties involved in the mortgage process for its implementation. Inflooens has adopted blockchain technology in its Mortgage LOS and is providing seamless operations to its customers.

How do Mortgage Loan Officers boost sales?

The Mortgage Industry is booming this year with the increased demand for houses due to the low interest rates. Homebuyers require qualified and trained mortgage loan officers to advise and navigate the min buying homes. Mortgage Loan officers also need to understand the customer’s requirements and close mortgage loans swiftly in this competitive environment. In this blog, we will explore how Mortgage Loan Officers can boost sales.

Recent developments in the Mortgage Market

As the economic and job market is on the path to recovery, the Mortgage Credit Availability Index (MCAI) has increased in March 2021. There is an expectation that the home purchase market will grow as first-time home buyers’ demand is increasing. The MCAI is calculated based on several factors such as credit score, loan type, loan-to-value ratio, etc., which are related to the borrower’s eligibility.

Image 1: Increase in MCAI from 2020

At present, home sales and refinancing activity are high as there is more demand among home buyers to buy homes. According to the National Association of Realtors, the U.S. housing market will face a shortage of 3 million available homes. Millennials are potentially first-time homebuyers who are keen on purchasing large homes. In this scenario, Mortgage Loan officers are the ones homebuyers trust in their journey to buy a home. Mortgage Loan Officers need to use simple sales strategies to enhance their businesses and exceed customers’ expectations.

Steps to boost Mortgage sales

Mortgage Loan Officers have to decide the best mortgage plan for their customers. They need to understand customer’s property type, loan amount, credit score, etc., and close their loans as quickly as possible. Each homebuyer is different, whether it is a first-time buyer or a repeat customer. Mortgage Loan Officers need to research the products and services that will fit the customer’s requirements and boost sales.

The steps taken by Mortgage Loan Officers to boost sales are:

1. Widen referral network

Sales usually happen by connecting with the people at the right time. In the Mortgage Industry, referrals play an essential role in boosting sales for Mortgage Loan Officers. Referrals by word of mouth help in expanding business. Real-estate agents and appraisers can refer homebuyers to Mortgage Loan Officers. Recommendations from past clients and their friends will go a long way in building the referral network. Mortgage Loan Officers should update their online presence so that customers can easily connect with them.

2. Ask open-ended meaningful questions!

Mortgage Loan Officers need to ask meaningful questions to their customers at the right time. Loan Officers can provide superior service to customers by understanding their plans by asking open-ended questions. Mortgage Loan Officers can provide general mortgage information, educate the clients about different products, and engage them in making decisions. Additionally, asking personalized questions helps the customers feel comfortable in dealing with the Mortgage Loan Officers.

3. Use of digital technology

The use of Mortgage Process Automation will help in boosting sales. Robotic Process Automation (RPA) benefits the mortgage industry by

• Improving customer experience, wherein automation reduces the time for closing loans.
• Improving productivity and efficiency by use of bots that validate customer information in minutes
• Eliminating human error by automating routine tasks thus reducing process costs and reducing risks
• Automation is minimizing deployment costs with less than three months’ ROIs.

Image 1: Use of RPA in the mortgage industry and its impact on sales and marketing

The mortgage Loan Operating System (LOS) makes the loan application process simple and improves borrower-lending relationships. Sales automation tools help in closing the mortgage loans faster. Mortgage Loan Officers keep their customers up-to-date about the various stages of loan processing. The use of AI and machine learning technologies in Mortgage LOS will reduce operational costs. Mortgage LOS improves customer experience and helps to close loans faster. The mortgage industry is increasingly adopting digital technology and transforming itself with future-ready Mortgage LOS. inflooens has the best state-of-the-art Mortgage LOS platform that provides the most efficient lending experience to its customers.

4. Diligently use social media as a marketing strategy

Social media marketing is one of the essential strategies adopted by Mortgage Loan Officers to grow their business. By posting live videos, ads on Facebook, and advertising services on Twitter, LinkedIn, Mortgage Loan Officers can connect with their clients. General mortgage information and success stories about home-buying experiences from past clients go a long way in attracting customers. The best place to network for Mortgage Loan Officers is Instagram so having a business account makes sense. Instagram is the social media platform of choice for 68% of homebuyers under 39 years of age. Creative marketing strategies using photos and videos can influence potential homebuyers.

5. Keep in contact with customers even after the loan is closed

After the mortgage loans are closed, a follow-up is vitalso that the client reminisces their mortgage experience.A follow-up sales email or a video message saying thanks to the customers for their trust in Loan Officers. Mortgage Loan officers should reach out to customers on their special days like birthdays, anniversaries, etc., to help build relationships. Mortgage loan officers have to keep in contact with their customers for repeat or new business. It is one of the ways for lead generation and builds a referral network.inflooens allows you to manage leads, including follow-ups and automated reminders for your customers.

The bottomline

Homeowners looking for mortgage advice and loan processing feel comfortable with Mortgage Loan Officers who understand their requirements. With the help of digital technology, Mortgage Loan Officers are processing and closing loans faster. inflooens has the best Mortgage LOS with embedded CRM tools that help Mortgage Loan Officers efficiently close loans.

How are Fintech Startups bringing Innovation in Financial Services

People’s perspective towards technological advancement in financial services has changed since last year. Many people have adopted online interactions in all aspects of their lives, including the mortgage industry. There are many reasons for adopting Financial technology solutions by consumers. In a report of Business Insider Intelligence, Fintech consumers found it easy to set up an account.

Figure 1: Top reasons for adopting Fintech solutions

Two out of three people did their financial transactions online in 2020. Financial corporations are investing in digital technology as they understand that innovation will keep them afloat. Innovation in Financial Services has helped people to have access to affordable homes. Online mortgage counseling is provided by Fintech firms so that homebuyers are aware of their options before buying a property. How Fintech Startups have disrupted the mortgage industry is in our earlier blog. Here, we will discuss how Fintech Startups and innovation in financial services are transforming the Mortgage Industry.

Fintech Startups and the Mortgage Industry

Incumbent financial institutions (about 88%) believe that part of their business will lose out to standalone Fintech companies in the next five years. Fintech Startups harness innovation in financial services and achieve business growth. According to Statista, Fintech Startups are the most populous in technological fields globally.

Figure 2: Distribution of Startups worldwide by industry

Fintech startups provide an easy-to-use mortgage calculator that helps borrowers figure out their monthly payments. Borrower’s details like home price, downpayment, taxes, insurance, and interest rates are accounted for while deciding mortgage payments. Fintech startups have advanced client portals that allow seamless loan application processing from pre-qualification, approval to loan closure. Explanation about Fintech Startups is preventing loan defaults is in our previous blog. The technology used by Fintech Startups includes Python, Django, NGINX, Gulp, among others.

The leading Fintech Startups provide services relating to mortgage loans with the best offers. They help customers in comparing different mortgage lenders and help them choose the mortgage lender of their choice. Fintech Startups use AI and Machine learning techniques for easy loan application processing. Customers can use both the web and mobile versions of the Fintech startups platform to research a property and apply for a mortgage with an interactive AI-powered dashboard. Some of the Mortgage Fintech Startups help in the buying and selling of homes with no hidden payments. Some other Fintech Startups provide home loans to customers and issue unbiased mortgages even to borrowers with no credit history.

Soon with the advance of technology, Fintech Startups will mature into established companies.

Innovation in Financial Services

Artificial Intelligence (AI), IoT (Internet of Things), Big Data, Cloud computing, and blockchain technology are the driving force for innovation in Financial Services. Big Data is used a lot in the financial services industry. IoT and Big Data are giving valuable insights to fintech companies concerning customers’ needs. AI-enabled innovation in Financial services helps mortgage applicants make the lending experience seamless and borrower-centric. Financial institutions are using cloud computing to store and process large amounts of data of customers. Customers are given internet-based access to their accounts through mobile device apps and websites.

The benefits of innovation in Financial services are varied, and some of them are:

• Mortgage loan processing is made smoother- Users get a step-by-step guide for seamless loan application processing. It reduces manual updating of data, including documentation, thus increasing productivity.
• Simplification of captured data by AI-Loan applicant’s details like addresses, income, credit score is stored and tracked for loan processing.
• Customizable financial services-Mortgage lenders upload customer’s borrowing habits with the help of API-led applications. The entire lending process is automated that optimizes the customer experience making it easy-to-use.
• Interactive dashboard with chatboxes and voice assistants- help the borrowers fill the relevant forms for the mortgage loan processing.

Also, innovation in financial services facilitates automation in the loan processing system. One such innovation in the financial services sector is cloud-based Mortgage LOS. This innovative cloud-based Mortgage LOS is giving a much-needed boost to the Mortgage Industry.

Cloud-based Mortgage LOS and its benefits

Cloud-based Mortgage LOS uses cloud computing technology for better management of the loan Operating Systems. Its customer support services run 24/7 and provide extra security to lenders and borrowers. Cloud-based Mortgage LOS improves customer satisfaction by involving less manual intervention, paperwork, and costs. It also saves processing time. The complex documentation process is streamlined with automatic sharing, storing, and updating of documents. Cloud-based Mortgage LOS can be easily configured and is available to the user instantly by using Blockchain technology, there is communication between the lender and borrower. Its use for authentication and verification of the borrower’s details. These details include the borrower’s history, creditworthiness, and finally, closure of loans. Cloud-based Mortgage LOS involves less operational costs and high process efficiency. Customization of the Mortgage LOS is according to the user’s requirements.

Conclusion

Innovation in financial services has benefited the mortgage industry by streamlining mortgage loan processes. Fintech firms are making the existing processes for homebuyers more efficient by using automation and advanced technologies. The potential of Fintech startups in the home lending sector is increasing steadily, with the economy recovering. inflooens has the best, state-of-the-art Mortgage LOS, which is causing transforming the Mortgage Industry with its scalable and super-fast outcomes.

Mortgage Automation – A strategic priority

Mortgage Automation should be a well-known term if you work in the Mortgage Industry, and especially if you deal with Loan Origination Systems. One of the first workflow engines for Mortgage Automation was granted a patent in 2002. Since then Fintech Startups have taken on the challenge and made digital loan origination systems a common industry practice. Some global banks have gone as far as to condense the loan origination process to just 3 minutes for application and 1-second approval with superior workflow management. So if you are not on the mortgage automation train yet, this blog will tell you why you need to make it a strategic priority for lending. We have discussed the concept previously in our blogs.

Why Mortgage Automation?

Consumer experience and behavior are the most important factors in decision-making for any business. This is also true for the mortgage industry. Surveys and statistics suggest that consumers prefer lenders who provide ease of application, error-free processes, and faster loan processing.

Speed, customer service and getting things right first time are critical ‘battle zones’ to differentiate and win in mortgage

Figure 1: Top Drivers of Consumer PreferenceImage Source: https://www.mckinsey.com/industries/financial-services/our-insights/banking-matters/competing-on-customer-experience-in-us-mortgage#

Mortgage Automation allows lenders to provide all these opportunities by enhancing the loan origination process. The benefits of digitizing the loan process include faster application, fewer errors, and an improved underwriting process that ultimately translates to higher consumer satisfaction. Lenders can see as much as a 3 times increase in loan origination volume by automating up to 85% of standard loan tasks, as per studies.

inflooens is a reliable and efficient mortgage automation platform that incorporates all these functions in an easy-to-use setup.

Fintech Startups and Legacy Systems

Many lenders are running processes on systems that are decades old. The apprehension of making the shift with mortgage automation is understandable. But these systems are expensive to maintain and not flexible. They also do not offer benefits like quick processing and fast release of new features or products. Fintech startups are transforming the mortgage lifecycle, especially the loan origination process, with new and innovative solutions.

Legacy systems are making it difficult for traditional lenders to compete with digital mortgages. This is also shown by the fact that the digital lending platform market has shown steady growth to become worth $3.5 billion in 2018 and an expected CAGR of 20.7% from 2019-2026.

Figure 2: US Digital Lending Platform Market SizeImage Source: https://www.grandviewresearch.com/industry-analysis/digital-lending-platform-market

One step at a time

Despite all the benefits of Mortgage Automation, it may seem overwhelming for some lenders to overhaul the entire mortgage lifecycle at once. Even though end-to-end digitization would be the best thing for a future-ready loan origination system, it is possible to gradually introduce digitization to mortgage processes. This allows the organization to adapt to new systems and make the most of this opportunity.

Let’s look at the areas where paced adoption can be introduced.

1. Loan applications

This is possibly the first process that can be easily automated. Collecting customer information online through dedicated systems results in reduced errors or missing documents in applications, a lower requirement of operational staff for the application process, and providing a single source of information for lenders and loan officers.

2. Application processing

Mortgage Automation can help in faster sorting of applications using advanced scorecards. These are based on traditional knowledge of credit data and alternate sources like financial information submitted by the customer. This helps in identifying credit-worthy customers faster and more accurately.

3. Risk evaluation with Predictive Analytics

AI and ML have revolutionized the way we use data. With platforms like inflooens, it is possible to evaluate large volumes of data to make accurate predictions about loan applications. Predictive analytics can be displayed using intuitive dashboards that provide a 360-degree view of the entire loan process.

4. Underwriting

Automating the underwriting process saves valuable time for lenders and allows underwriters to give real-time decisions. Automation will also help in staying compliant and consistent while increasing productivity. More on this topic in our previous blog.

5. Loan Approvals

From loan decisions to disbursement, mortgage automation can make the task of lenders easier and faster. Straightforward and simpler cases can be handled by the mortgage platform while teams can focus on more complex applications. Also, status updates can be provided to loan officers and customers for transparent loan processes.

Mortgage Automation is the best strategy

By now it must be clear that lenders need mortgage automation to improve their processes and customer satisfaction. Depending on their adoption capacity, lenders may go for complete digitization or a gradual transition. Mortgage automation is the new normal for the mortgage industry and it should be an important part of a lender’s strategy. Fintech startups like inflooens have proven to be the right partners in briging the gap between legacy systems and mortgage automation.