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Direct-to-Consumer Platforms: The Future For Mortgage Servicers

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Traditionally, mortgage servicing has been a broker-centric institution. Only recently has technology enabled direct-to-consumer channels to blossom.

Millennials coming into their own are looking for a variety of channels which provide incisive and efficient services. It is true that experts feel broker-centric services will continue to exist, as consumers crave for personalized attention.

However, mortgage software solutions are taking up advisory roles by way of connecting lenders with borrowers rather helpfully.

The property market is gaining its health back, as economies, employment, and spending continue to grow. After the implosion of property prices in 2008, things are definitely looking up. Construction has been on the rise with single-family homes showing 50% increase since then.

Millennials, with a population of 75.3 million, are slowly taking over from Baby Boomers and Gen X. In fact, the purchasing power of Millennials has galvanized the housing market. Technology has been a great leveler and the old fashioned lender-broker-consumer market is diminishing to pave way for the direct-to-consumer approach.

Should you maintain direct-to-consumer as well as referral-to-realtor pipelines?

The realtor-based consumer market is shrinking, and therefore, lenders should look into a more inclusive platform for mortgage software. Solutions like loan origination software should be lead based, so that business is augmented by realtor-based leads along with direct ones.

On one hand, a direct-to-consumer channel helps in reaching out to tech-savvy Millennials comfortable with the information superhighway. The direct approach also helps in brand loyalty. On the other hand, companies can create their realtor-referral pipelines and control them easily. As a lender sending referrals, you can wield some bargaining power over the realtor.

Customer-service driven process

With progress in technology, mortgage servicing software need to enable customer experiences that are seamless and efficient. How?

· For borrowers and brokers, closing is top priority. The success of transactions depends on the originator’s ability to close mortgages without snags.

· The lender can assure borrowers by highlighting its credentials and accolades.

· The simplicity and speed of the process is a major factor for it to be customer friendly.

· The mortgage servicing software should also have broker access, which will help to deliver better person-to-person communication.

· Through technology, costs can go down and be offered to customers as discounts.

Mortgage software solutions like loan origination software, mortgage servicing software, loan servicing software and more can guide customers to the right products and services. The solutions should also provide information about the right payments, loan schedules, loan structures, and tax benefits. It will add value to consumer service and make direct-to-consumer services more attractive for many people.

Author Bio: Preethi Vagadia is currently a Senior Business architect with the Service operations practice at a well-known IT Industry in Bangalore. She has worked in several process improvement projects involving multi-national teams for global customers.

She has over 8 years of experience in Mortgage Technology Solutions and has successfully executed several projects in Logistics management, Logistics Integration, Reverse logistics, Warranty software and Programmatic Solutions.

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Robert D. Cobb
Founder, Publisher and CEO of INSCMagazine. Works have appeared and featured in places such as Forbes, Huffington Post, ESPN and NBC Sports to name a few. Follow me on Twitter at @RobCobb_INSC, email me at robert.cobb@theinscribermag.com

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