Taking the enterprise online
One of the interesting disconnects in the real estate and home finance business is that people are very willing to go online to do research about a new home or loan, but when it comes time to transact they choose to do it with a human hand-holder. And this despite the fact that both real estate agents and mortgage brokers are not held in high esteem. While customer service ratings for mortgage loan closings are still in the single digits, people have not embraced the online close.
Executives at Stewart would point out that an online close is not much different for the consumer than closing at home with a closing agent. The only difference is that the consumer is brought to an online closing center, situated in front of a computer monitor and then asked to click and sign while the closing agent watches. Even so, it surprises me that as much as we hate the mortgage lending process, we don't work harder to simplify it by doing more of it online.
Of course, it could be much different for the lender, both faster and cheaper.
I'm currently working on a story for Mortgage Banking about online real estate. What parts of your business are now being handled online?
I know about lead sourcing and management, online LOSs, distributed processing and underwriting, settlement services via VANs and EPNs, wholesale lender websites (though there are fewer now), DU & LP, electronic loan folders and paperless investor delivery. Is there anything else? On the origination side at least, it appears that everything is being done online, except the part that involves the customer.
One notable exception is the HELOC via credit card, but the actual transaction is handled in a more traditional way. The card only allows the borrower to make draws from the existing line. In general, we're still sitting down with the borrower and watching them put ink on paper.
Any idea when we'll actually get past that? Are any of you using bio tools and/or tokens to do fully electronic transactions with your customers without the oversight of a notary or other third party witness? It's coming. I hope to provide some idea of how far off it is in this next article.
If you want to contribute to this article or want to point me in a direction, drop me a note at rick@rickgrant.net or call 570-325-2818.
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Its just a matter of time.
Its just a matter of time. We are in a generational transtion until enough younger buyers, comfortable with technology move into the market and drive demand for a more streamlined, simpler process. A lot of inertia has still to be overcome. We have to get the e- in mortgages instead of pontificating about it. We have to force a cleanup of the bad data upon which most credit scores are based. Appraisals are still too time consuming and unrelaible withregard to value. . . There is plenty to do. Let's get to work!
online enterprise
we have a system that allows a borrower to not only apply for a loan online, but pull their own credit report, in the broker's name, from any location. It delivers FACTA disclosure and billing invoice electronically to the borrower, and locates the broker notifying them of the online application via text message and email. The service is free to the broker, and is customizable and branded to them. Everything integrates with L.O.S, automated lender systems and CRM tools. Designed to work entirely online to eliminate paper, reduce fraud and handle this step in a secure environment for the applicant.
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