How to close the loop of service to the origin for consumers

For me, the final phase of “lifelong customer engagement” in mortgage lending is a continuous loop of service back to the roots for consumers. This maintains and develops customer relationships while increasing MSR values ​​and reducing origination costs. But like anything else with mortgages, execution is harder than it looks and involves two simultaneous strategies.

Strategy 1: Complete the modernization of the consumer’s journey in the service for a fluid and consistent experience at every point of contact of the borrower throughout the life cycle of the loan. Strategy two: start building new blockchain plumbing to prepare for the next two decades.

Right now, retention in the industry is only 21% (per MBA), which means service providers are still losing around four out of five clients in their portfolios. There are several reasons for this.

First, data and communication gaps erode customer trust as they move from creation to maintenance.

Second, so far the originators have been better than the repairers at offering new rate / term loans, debt consolidation withdrawals, home improvement withdrawals and home purchase loans to consumers at the right price. moment.

Third, customers can also go astray when offered non-mortgage products by other custodians or competing banks.

Here’s how repairers can solve all of these issues to create a lifelong customer engagement loop – and how you can exceed customer expectations today while building for the future.

Shorten the transition from origin to maintenance
The transition from initiator to service provider is too often a failure of the consumer experience and must be a primary objective of service modernization. Repairers can solve this problem by automating origin-to-maintenance through the planning, loading, mapping, converting, and testing processes.

For example, Sagent’s LoanBoard software automates all system processes from LOS to maintenance, such as loading, mapping, converting, and testing. This enables real-time compliance when integrating new services at any scale, with today’s most widely used LOS. Most importantly, it speeds up the identification / correction of errors, which eliminates gaps in customer service for borrowers.

Use fully real-time data to stay ahead of borrower needs
With a smoother transition from plan to service, the next step is to stay ahead of borrower needs and commit at the right time.

For repairers, the key is allowing borrowers to engage with real-time data about their home and financial profiles – and keep it on your platform when it’s time to explore their options.

Whether it’s allowing clients to start searching for a new home on your platform or staying one step ahead of borrower needs with pre-approvals and home improvement loan offers. habitat depending on their activity, fully real-time data makes it easier to offer them the offers that matter to them. them when they need it most.

It is not enough to just offer self-service and stop it. Consumer expectations are changing, and service customers expect both push-button simplicity and on-demand access to intelligent human advice.

We’ve seen consumer-centric digital technology proliferate in fixtures over the past decade, and the service industry is finally catching up.

And if we are successful in modernizing service first for the consumer, we can close the service loop to the origin, engage and retain borrowers, and prepare the infrastructure to set the stage for the next wave of consumer-driven innovation. the consumer.

Define the role of blockchain in the service loop from origin to life
The pandemic has forced a rapid shift to digital from which we will not back down. As more banks and lenders embrace technology to prioritize the consumer experience, the next logical step is to streamline the process itself, and mortgage blockchain is the most efficient way to do this. to do.

Mortgage officers could track borrower payments, complete required monthly reports to GSEs and other stakeholders, manage non-performing loans through loan modules, and manage potential foreclosure, REO and property preservation efforts on the loan. the chain with immutable record keeping to reduce risks and costs throughout the process.

Blockchain in service can also increase transparency by fueling real-time data sharing between services, investors / GSEs, regulators and borrowers.

And blockchain can dramatically improve the portability and value of MSR. The immutability of the blockchain would ensure that loan pools could be freely and easily transferred, as all data from the point of origin is known and validated.

A mature mortgage blockchain will replace our industry’s ‘trust, but verify’ approach to mortgages with truth – the immutable blockchain becomes the single source of real data on borrowers, loans, and loan pools.

At Sagent, we’re laser-focused on our vision of modernizing customer service first from a SaaS software perspective. But we also need to build tomorrow while exceeding customer expectations today, which means building new blockchain plumbing to set the stage for innovation over the next two decades.

You may have seen Sagent and Figure team up to pilot these concepts with Figure’s first privilege creations in 2022.

They now have $ 25 billion in creations and aim to put much of that native on the channel as proof for 2022, just like they did for HELOC in 2019-2020. Sagent will help fuel that, and before you know it, it will be all over the place.

In the meantime, we continue to build the future as described in the sections above.

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