Discover how the latest technology revolution could change the mortgage industry.
Between COVID-19 restrictions easing across the nation and gradually rising home interest rates, the first quarter of 2022 will certainly be one to remember. Now that Q2 is nearly here, MLOs may need to determine the next steps for their business and, in the twenty-first century, that often involves adopting some new tech.
Before officially gearing up for another quarter, it is important to reflect on the first three months of the year and the technical advances, like the launch of desktop appraisals to Bitcoin loans, that occurred. Here’s what you need to know:
Tech tools won over consumers
Most MLOs agree that the customer experience is key. But, with high demand and limited supply, how can you ensure your clients receive a unique, positive experience, from start to finish? Investing in tech tools, whether it be tablets , a virtual assistant, or even a CRM system, could be the first step.
As of February 2022, nearly half of all seniors, historically the most tech-averse among us, have a smartphone and 67% use the internet. That means that potential clients of all ages will be impressed with a modern, technologically advanced customer experience.
Online lending grew in popularity
In the same vein, certain consumers passed up brick-and-mortar mortgage companies for their online counterparts last quarter. More than ever, consumers are after ease and convenience. Plus, without a building, online mortgage companies can devote more resources to products and offerings. This fact isn’t lost on borrowers.
Whether you build out a fully online process or simply commit to fleshing out your digital marketing strategy, it’s safe to say that most MLOs will need to be online in some capacity moving forward. After all, how else are you going to capture those Gen Z homebuyers?
Automation was king
Of course, with continually high demand and low inventory, automation was integral in the success of many MLOs last quarter. From mortgage processing tech to investing in a CRM, more professionals than ever are letting tech do some of the heavy lifting for their businesses.
Fannie Mae debuted desktop appraisals
Amid such massive demand, property appraisers have struggled to analyze homes in a timely, efficient manner. To remedy the issue, Fannie Mae proposed an online evaluation process, dubbed a desktop appraisal, late last year. Certain loans will be eligible for the new process after March 19, 2022.
Crypto mortgages debuted
No real estate-related wrap-up would be complete without some conversation around cryptocurrency! While the practice is still in its infancy, some buyers are now receiving loans with Bitcoin.
Instead of applying in the traditional sense, borrowers are evaluated on their Crypto portfolio and the value of their potential home. Interest rates range from 5 to 8%, and there are currently about 7,000 people waiting in digital line to get a mortgage with Cryptocurrency. Welcome to the future!
Looking Ahead to Q3 2022
While tech trends can be a bit intimidating, especially for those more charmingly old-fashioned MLOs, understanding what’s happening in the digital world can yield new skills, promote superior customer service, and even give you a professional edge. And you don’t have to buy any Bitcoin just yet - maybe start by checking in on that digital marketing strategy!
Looking for the latest mortgage news, tips, and updates ? Sign up for the wemlo Weekly newsletter where the #teamlo provides everything you need to know all in one place!
