A downturn may be the best time to focus on implementing new software solutions, preparing your team for a roaring return.
In 2022, the mortgage industry was focused on weathering the storm as interest rates surged. While the current environment is making mortgage professionals cautiously optimistic, many lenders are undecided about adopting new technology. Remaining undecided and not adopting modern solutions during volatile times puts lenders at risk of experiencing increased costs per loan. The MBA is forecasting an increase of $143 billion in loan volume from Q2 2023 to Q2 2024. This represents an over 26% increase in mortgage originations. When increased volume returns, lenders can find themselves scrambling to find time to adopt solutions, like software automation. Every lender should evaluate if this cycle is happening to them and break the pattern.
Nataliia Peterheria, an operations manager with Django Stars writes, “Today’s mortgage businesses should rely on technology heavily to do more with less. With the US Federal Reserve increasing interest rates and borrowing costs, banks stepping back from mortgage servicing, and 49% of homebuyers preferring self-service portals, according to ICE Mortgage Technology, mortgage market players must rapidly adopt technology to remain competitive.”
New technology allows lenders to commit more time to closing new business, enhance customer touch points, and eliminate routine manual tasks. The reality is, now is the perfect time to adopt automated solutions before loan applications increase.
Recent data is showing that mortgage applications are on the rise. Nadia Evangelou, Senior Economist and Director of Real Estate Research for the National Association of Realtors mentions that while home sales dropped by 2% in March of 2023, 34% more homes were sold in March than in February. “This increase is actually larger than the pre-pandemic historical average growth of 33% that typically occurs between February and March.” As mortgage applications are expected to increase, selecting the right technology should automate current processes, reduce costs, eliminate customer friction, and allow a team to focus on meaningful work.
With the increasing need to reduce costs per loan coupled with the forecasted rise in loan volume, it's clear that technology will better position a lender for tomorrow.
Evaluating new software can be a time consuming process. Lenders are required to review current business workflows and map out how new technology will integrate with their processes. Software assessments can be lengthy and last months. With the increasing need to reduce costs per loan coupled with the forecasted rise in loan volume, it’s clear that technology will better position a lender for tomorrow.
The Willow Servicing platform automates and streamlines all post closing/interim servicing processes. From sending out required borrower notices, eliminating missed payments, reporting 1098 statements, updating mortgagee clauses, administrating escrow, to automating reports, Willow puts servicing on auto-pilot.
Willow Servicing reduces costs by at least 70% through cloud-based software automation, providing instant ROI. Manual and inefficient processes are costly and bog down teams, disrupting the ability to meet company goals. In a recent case study, First World Mortgage was able to automate post closing procedures and reduce manual tasks by 80%.
If you are interested in seeing a demo or learning more about how Willow can help your company, click here.