The mortgage industry’s promise of technology creating a faster and easier mortgage origination process does not appear to be fully recognized, as mortgage customers are reporting slower purchase processes. That’s according to the J.D. Power 2017 U.S. Primary Mortgage Origination Satisfaction Study,SM which finds that overall satisfaction with mortgage originators has declined this year, due in part to a perception of a slower process, despite a significant increase in the number of customers applying online.
“We’re at a critical inflection point in the mortgage industry where new technology and the growing use of digital mortgage application channels has made it possible for the origination process to move more quickly; however, the customer is still the final judge of speed and quality,” said Craig Martin, Director of the Mortgage Practice at J.D. Power. “A critical element of satisfaction is setting expectations, and this tends to be a weakness of technology, which is demonstrated by substantially lower satisfaction among customers who do not work with a human to complete their application.”
Following are some key findings of the study:
>>Overall satisfaction declines as purchase process slows: Overall satisfaction with primary mortgage originators is down 8 points (on a 1,000-point scale) in 2017. This is driven in part by reports of longer times from initial application to closing. On average, the purchasing process took 36 days this year, an increase of almost a week from 2016.
>>Digital use surges but not digital satisfaction: For the first time in the study’s history, both refinance and purchase customers cite online/website as the most frequent method of submitting a mortgage application. A total of 43% of mortgage customers indicate applying digitally in 2017, up from just 28% in 2016. Satisfaction among customers applying online/via website has declined by 18 points year over year and trails satisfaction with in-person applications by 10 points this year.
The Lodasoft Digital Mortgage Platform provides loan officers with complete loan visibility, accountability, and transparency in one easy to use digital mortgage solution. In addition, the solution acts as a 24-hour virtual assistant providing one point of access for system driven communication, gathering of documents, automated lead generation, in-process status updates and post-closing follow-up.
Our intelligent digital loan manufacturing workflow helps lenders automatically identify and complete rudimentary tasks throughout the enterprises lending lifecycle, streamlining the origination process to assist is closing loans faster. Our digital mortgage platform offers mortgage lenders the ability to further simplify their origination and closing process while keeping borrowers, realtors, and all other interested parties involved every step of the way.
The Lodasoft difference is in focusing on the loan, manufacturing it in as little time, with as little errors as possible, while communicating every step of the way. When implementing Lodasoft, lenders can take a traditional pipeline-driven model (file by file) and move to a prioritized task-driven model while automating communication simultaneously.
By focusing on the loan, lenders are able to identify all of the mini-bottlenecks from lead to prequalification to in-process, closing, post-closing and beyond. The borrower will see the benefits of more transparency and faster processing. As a result of simultaneously automating communication along the way, all interested parties have a new sense of involvement creating much deeper relationships further driving greater borrower satisfaction.