Digital Mortgage Nirvana: Cheaper, Better, Faster

March 9, 2017
Industry Trends


Shouldn't borrowers expect the same level of ease, empowerment, and transparency they enjoy in their more trivial purchases?

Why do mortgage lenders think that customers are willing to wait patiently for a month or more to learn whether they will be able to finance perhaps the most significant purchase of their lives? Mobile food-delivery apps offer multiple status alerts when we order a $10 pizza. Shipping companies let us not only see every step in a $40 package’s journey but reschedule delivery or redirect the package mid-route. Amazon’s “Mayday” button lets us instantly connect with a live support agent when we can’t figure out how to rent a $2.99 movie. Shouldn’t borrowers expect the same level of ease, empowerment, and transparency they enjoy in their more trivial purchases?

Until recently, lenders could plausibly argue that the question was unfair — they couldn’t offer better consumer experience because of the regulations that govern them, the documents they must review, the complexity of the decisions they make, and the thin profit margins they earn. Today, however, customers have had a taste of the digital mortgage experience through providers such as Quicken.

In this Point of View the authors explore the digital capabilities they believe will quickly become table stakes for mortgage lenders, especially as third-party providers emerge to offer solutions for the required capabilities and as investors and guarantors accept and encourage their use. Given today’s increasing level of competition, they anticipate that digital offerings will quickly evolve to take advantage of already-available technologies in addressing hassles in the application process.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents


Simplified Application Intake



Product Recommendation and Selection Engine



Instant Conditional Approval



Transparent and Quick Journey from Approval to Closing



Human Support When Needed



Electronic Closing


Wait, There’s More



Increased Automation of Fulfillment



Artificially Enhanced Front End for Sales and Service



Risk and Customer-Centric Work



Expansion Beyond the Mortgage Transaction


Avoiding Failure


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