Quicken Loans for home MortgagesLoans Quicken for Home Mortgages
Home Mortgage Loans Over Two Million Loans Closed!
Taking Finance to the next level
Where mortgages are concerned, US bankers are receiving around 10 million client requests a year. On the other hand, however, credit institutions also face difficulties with the costs and volumes of mortgages, so they are looking for technology advances that could speed up the credit processes. Wherever the challenge of the mortgages hides:
Although complying with the regulations for the mortgages markets is nothing new, following the 2008 global economic meltdown banking institutions were confronted with a number of new rules and regulations. Legislators saw the need to establish a new regulator - the Consumer Finance Protection Bureau (CFPB) - to safeguard clients from misleading and improper credit practice and supply them with up-to-date information to speed up the search for mortgages.
Qualified Mortgages Standard, published by the Office, not only protects clients from damaging credit terms such as a pure interest rate term or adverse amortisation, but also protects creditors from possible repurchases. Due to all these changes, the amount of documentation needed to acquire a mortgages has increased drastically to over 500 pages.
Also, the costs of taking out a credit have increased: with an annual increase of 12%, the costs of taking out a credit in 2016 amounted to USD 7,845 (Accenture's Mortgages & Compliance As as-a-Service Study). Although the vast majority of clients have already taken advantage of the benefits of on-line transaction with wireless applications, the concept of digitising the mortgaging lifecycle is still in its early stages.
Currently, taking out a home loans is an important cause of disappointment for an average client. In general, borrower view this as one of the most time-consuming, paper-intensive and nerve-racking activities. It is this latest addition to the range, which uses computer and cell phone for almost any type of business activities, that awaits the same degree of enjoyment for home buyers.
For this reason, by digitising the mortgaging processes, a bank can satisfy its customers' needs by ensuring visibility, less red tape and less loss of track record in a retail store. Historically, corporate banking has been the largest provider of mortgages in the US mortgages industry, led by several large financial institutions such as Wells Fargo, JP Morgan Chase and Bank of America.
However, the mortgages environment was disturbed by up-and-coming investors in financial engineering and seed capital. The Daily says that business banking has reduced the amount of mortgages by 22%, while non-bank loans have almost doubled and currently account for about 43% of mortgages in the US. For example, Quicken Loans, with its rocket mortgages platforms, has become one of the country's most sought-after on-line mortgages providers.
From 2013 to 2016, it succeeded in achieving a total of almost $300 billion in mortgages in all 50 states. Even mortgages start-ups such as Lenda or SoFi are trying to integrate themselves into the mortgages markets with the help of innovations. The difference between all these businesses and conventional creditors is the extraordinary client experiences and the comfort they offer them.
Lenda in particular is promising faster processing and fee reductions, while SoFi enables creditors to obtain more funding than conventional banks. In order to alleviate the threat from fintech and start-ups, the bank sector decided to build its own electronic mortgages solution. At present, incumbent mortgages banks are offering a variety of client applications and platform offerings that make home buying much simpler and less complicated.
The majority of them have already activated an on-line recruitment procedure so that clients can fill in the recruitment forms at any moment and in any place suitable for them. A number of mortgages companies provide e-signatures and e-delivery utilities that facilitate and accelerate the supply and receipt of mortgages. Others established e-closing to facilitate the verification, signature and authentication of documentation.
In most cases, however, they do not succeed in establishing an embedded odnichannel hypothecary offering. Compared to financial products, most bank products are more spread across multiple sources, both digitally and physically, making it difficult to quickly close mortgages. In order to open up more possibilities and make the mortgaging proces more efficient, financial institutions can consider setting up a portable application according to the fintech-like approach.
The Quicken Loans is a good example of a business trying to build a real ubiquitous channel mortgagesolution. In addition to its on-line trading system, Quicken Loans launches the MyQL portable applications that allow borrower to monitor mortgages on the move, make payment and digitally sign documentation. Looking at it from the customer's perspective, a portable appliance is an easy-to-use way to speed up the loan request proces.
A recent JD Power survey confirms that 62% of consumers under the age of 35 would use a portable phone to apply for a home loan. Even some larger financial institutions have already recognised the full extent of the possibilities offered by portable mortgages. Bank of America opted for a portable approach that would enhance its mortgages eco-system following the launch of an on-line mortgages fulfilment centre in June 2016.
In addition to the provision of conventional electronic mortgages functions, such as the integration of credit clerks, e-signature, documents download and others, the appliance speeds up the request procedure itself. If it is a matter of a mortgages request, a client has to fill in about 250 boxes of information, which makes the whole thing a true nightmare for most borrowers.
In order to minimise the effort of clients and conserve valuable resources, Bank of America will prefill these areas with client information already saved in bank management software (LOS, CRM, Mobiles, etc.). Long range consumers can potentially achieve more profits and reduce costs with a portable application. Chase also followed and chose to work with a company named Roostify to develop a portable self-service mortgages solution for home buyers.
It will contain on-line questionnaires that already contain default values for people. Clients can evaluate their mortgages via both an on-line bank as well as Morgan Mobility and follow all phases of the mortgages request. There is great untapped scope for digitising the mortgages request procedure. Even though the current state of the economy is characterised by a small number of built-in mortgages, the sector is still active.
Under these conditions, a portable canal can be a leap forward in creating a complete eco-system for electronic mortgages.