According to estimates, the lending industry is set to originate ~$2.5 trillion in loans over the next three years. To put this in perspective, this amount is 40% higher than in 2019, just before the pandemic. With interest in lending for home ownership skyrocketing, lending providers need to keep up or risk falling out of the race. Mortgage POS (point of service) software is one solution to help borrowers connect with lenders faster than before, staying in touch through the process from origination to delivery to collection. But why is mortgage point of sale software winning over alternatives and just what makes them so competitive?
What is Mortgage POS?
Mortgage point of sale software, or mortgage POS, for short is a scalable lending solution that allows businesses to help their clients access and manage credit more effectively and efficiently. Essentially, mortgage POS streamlines the borrowing process developing an experience that is more user-friendly.
With 63% of homeowners in the US having a mortgage, indicating a large market for home-buyer lending. However, many may face challenges with applying for loans, such as access to a local credit provider, fear and simply not having enough time to explore their options. Borrowers need a more efficient way to apply for home-buying loans. Mortgage POS is the solution.
Mortgage point of sale software allows potential lenders to apply digitally for a home loan. The application is then assessed via a digital portal, secured with the latest technology. Once the essential documents have been uploaded, the application can be processed quickly, and decisions are given faster than ever before. Due to the streamlined process potential buyers are more likely to engage and have greater control over the credit they plan to take.
What’re the Benefits of Mortgage Point of Sale Software?
Mortgage Lending Trends 2022: Rates, Technologies & Forecasts It’s obvious that mortgage POS is convenient for clients, but what about for companies? Unsurprisingly, mortgage POS systems offer significant benefits on the provider side as well. With coronavirus changing how the public expects financial services to be delivered, in addition to a greater demand for homeownership, point loan origination software offers a convenient way to bridge the gap between client interest and loan origination.
Commercial mortgage software offers a number of effective tools for businesses to create a seamless borrower experience, including onboarding, transparent and accurate services, loan processing, and more. In addition, mortgage POS systems:
- Help build customer relationships by always being connected to the client and keeping the line of communication open
- Deliver greater control for the client so they always know what to expect and are more likely to keep up their loan repayments
- Manage a wealth of data—lending rates, risks, borrower behavior, etc.—that allows the provider to enhance future business processes and tailor them to client needs
- Process loans more efficiently and reduce risk by gathering all the data digitally.
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What Core Elements Should any Mortgage POS Software Solution Possess?
No mortgage POS solution is alike, depending on your particular business needs you may consider the following areas:
Loan origination and processing
An efficient onboarding and loan management process can be make it or break it for a provider. Efficient loan processing software can ensure the client’s journey is as streamlined as possible by creating the optimal conditions for helping the client complete the task they approached the company for in the first place. Loan origination and processing tools allow clients to onboard, complete a loan application, and track their finances without ever leaving the application.
Compliance: KYC and AML
KYC and AML Processes or How Automation Improves Compliance in Lending When it comes to finances, some things are a must. Essential regulatory procedures are a need to do no matter whether the application happens in a bank branch or via a mobile app. Mortgage POS software needs to come equipped with secure, accurate tools that align with its operational regions’ KYC and AML laws and store data securely.
When it comes to lending provider communication, it’s not just getting the clients through the door that matters, it’s keeping in touch long-term. For example, this may be following up after a failed loan application with tips for next time or communicating to remind a monthly payment is due. Better communication often leads to more successful outcomes for both client and provider.
Digital Signature in Banking: Points for Financial Organizations to Consider Depending on your region of operation, e-signatures may be an option for completing a legally binding loan application, reducing time and paperwork. However, this is location-dependent, and it may vary from state to state.
Reports, analytics, planning
Most Important Insights & Reports for Your Lending Business From tracking loans to analyzing the results of the quarter to tracking risk and more, analytics and Big Data are at the core of any future lending solution. Tracking performance indicators can help indicate risky behavior early and help prevent defaults on payments. By analyzing the data available, you stand the best chance of ensuring efficiency in your business.
Customization and personalization
In today’s market, being able to personalize and customize your service to meet individual client needs is a customer-pleaser. From calculating individual risk to personalized lending rates and conditions, having smart mortgage POS software can help you ensure that you boost client satisfaction rates while taking on minimal risk to your business.
Mobile or web
Nowadays, mobile is king. However, that doesn’t mean that your business shouldn’t have a web-based solution. When it comes to choosing a platform or making the best of both worlds, it’s important to seek out a provider that specializes in ensuring cross-platform functionality.
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Mortgage POS: Next Steps
Finding the right mortgage point of service software provider is no easy task. It’s likely you will have to analyze the offerings of numerous businesses and the services they deliver. So, what should you look for when finding a provider?
First, stop and look at the specific needs of your business and match these to a POS lending software provider(s) that specializes in this area. Work with the team to complete discovery and set out a strategy for software implementation. Make sure you find a company that has been tried and tested with reviews that you are confident is up to the challenge.
Interested in point of sale for mortgage lending? Get in touch with HES.