STRATMOR: Borrower Satisfaction Driving Lender Technology Decisions
According to the 2019 Technology Insight Study, Greenwood Village, Colo., improving the borrower experience is the key driver for implementing technology, with three of the top five perceived digital benefits specifically focused on enhancing borrower satisfaction with the loan process.
“As with years past, lenders ranked increased borrower satisfaction, faster cycle times, increased transparency for borrowers and greater task, service orders and workflow automation as the top four benefits of digital mortgage,” said STRATMOR Senior Partner Nicole Yung. “Technology limitations impact many of the barriers to digital capabilities, but lenders report the benefits of digital are worth the effort.”
The 2019 study found that for the fifth year in a row, Ellie Mae holds the top spot among point-of-sale mortgage systems. Other systems are gaining ground, however, including Blend, which finished in the number two spot for the second straight year.
In the lead management/customer relationship management market, more than 20 percent of respondents said they do not use a company-sponsored lead management tool, while 6 percent said they use either a CRM built into their LOS or use an internally-developed CRM. The study also found that among the almost 80 percent of lenders using a CRM, 74 percent use one or more of the 25 third-party systems sharing the CRM market. Of those 25 systems, Top of Mind, Velocify and Salesforce held the top three spots. Salesforce gained almost five points, followed by Velocify, which gained two. Top of Mind held 20 percent of the market, according to the study.
The study reported the number of loan origination system platforms used by lenders in the study is falling due to industry consolidation from M&A deals, fewer multiple-system offerings from vendors and because some platforms haven’t kept up with regulatory changes and new technologies, among other factors. The number of LOSs identified as the primary system used by lenders participating in the study has dropped 36 percent over the past four years, from 33 LOS platforms in 2015 to 21 platforms in 2019, according to study.
STRATMOR said 20 percent of lenders utilize robotic process automation to automate business processes, with most using them in the processing and post-closing areas. The study also shows that 75 percent of those lenders use a third-party provider to implement RPA in their businesses. UI Path, Blue Prism and AIF were the most popular third-party providers, and all offer training and certification in RPA through their websites, the study found.
“While technology is capable of improving the borrower’s experience, mortgage professionals using the technology have the greatest potential to make the borrower’s experience better,” Yung said.
The report can be accessed at https://www.stratmorgroup.com/insights_article/six-key-takeaways-from-the-2019-technology-insight-study/.