“There is no technology that can be ‘The Answer’ to a better customer experience in the absence of effective strategy and planning.”- Brad Cleveland
Triggered by the pandemic and the lockdowns the world has dashed into a digital-first economy. Mortgage processing is one of the key areas that requires an abundance of knowledge workers. Even though the US mortgage rates are rising, more Americans are moving in every year compared to the year before. This sets forth a steady opportunity for the mortgage businesses to grab. Unlike buying stuff online, mortgaging involves a lot of human interaction. There will be back and forth paperwork. In such an environment, customer experience is one very important, if not the most important aspect of conducting business. The following are some of the key areas that, if given the right focus, can enhance client satisfaction and lead to tremendous business growth, moving forward.
1. Application and Status tracking
After the 2008 financial crisis the mortgage industry is under tight regulation. Every time the norms are revised, they put on some weight. The changing nature adds another layer of complexity to it. This is where adding simplicity to the process gains you a competitive advantage. You can take advantage of the online application option and digital document management. The key is to make the client do as little work as possible.
Talking about tracking, you cannot manage what you don’t track. Your clients are juggling a million other tasks along with their mortgage application. Getting a mortgage is probably the most important financial decision in the life of an average American. To feel on top of things, the client needs to know the status of the processing on a real-time basis. As real-time as possible. Also, make the status-tracking easy and intuitive. Preferably visual.
2. Fast Turnaround Time
Turnaround Time, hereupon mentioned as TAT, is a defining characteristic of the operational efficiency of any business. In the context of a mortgage business, it has a secondary effect too. Longer TAT results in reduced customer retention. Apart from operating inefficiencies, errors in processing can create bottlenecks that will not only result in longer completion times but also lead to client loss. It will ruin the firm’s reputation. Having industry experts in the payroll and implementing fool-proof systems will eliminate errors in the process. This will reduce the paperwork going around back and forth.
3. Competitive charges
Residential mortgage industry is price sensitive. Competitive pricing is a time tested strategy to gain market share. Particularly, in sectors with multiple established firms. Eking out razor thin margins can bring down prices. But it will also affect the profitability of the company. Bringing overhead costs down is a good strategy over the short to medium term. Working on operational efficiency can also look good on your income statement.
Operational efficiency can save you pennies. Managing your risks will save you big money. Quoting Warren Buffett, the first rule of investing is- ‘Don’t lose Capital. The second rule is- ‘Don’t forget rule-1’. The philosophy is completely applicable to a mortgage lending business. To stay in business a mortgage firm should closely manage the risk of defaults. This will enable the firm to offer competitive prices for the services.
4. Access to Expert Advice
As mentioned earlier, the compliance framework of the mortgage industry is pretty tight. On-demand technical know-how is something without which one cannot maneuver the changing landscape of this industry. Either you have to invest in acquiring that expertise or outsource it. The right information at the right time can save the client a lot of time and headache.
5. Transparent Process
Transparency is a thing the customers demand in today’s market. Give the customer a clear picture about the closing costs involved, including attorney’s fee. This will develop trust in the firm. In a nutshell, follow the Customer is King approach. Optimize on every point where the customer needs to make a decision or take action. In the ideal case scenario, the customer should not have to think about anything at no point in the process. If you are planning to outsource your mortgage processing, Auctor Business Solutions has residential mortgage services and a round the clock customer support team to assist you in every step of your business.
