When automated verification solutions integrate with a digital mortgage point-of-sale (POS), lenders and borrowers win.
Today, there are few products and services that can’t be purchased online, instantly. Until recently, mortgages fell into that limited category.
Traditionally, getting a mortgage is a lengthy process that involves a lot of back and forth, either in person or through email, between a consumer and a loan officer. Part of the reason getting a mortgage is so time-consuming is that lenders need to verify a vast amount of borrower data, including income and employment, to determine if they can pay back the loan, also known as their “creditworthiness.”
The verification process of a mortgage application requires borrowers to provide information like position, salary, employer, income statements, bank statements, proof of employment, employment history, tax returns and more (depending on the lender), either on paper or in a PDF. The lender then has to verify this information is accurate, which is often a lengthy and manual process.
Recently, however, lenders have discovered the benefits of a digital mortgage point-of-sale (POS).
What is a Digital Mortgage POS?
A digital mortgage POS is a web-based platform that borrowers can access from their computers. The mortgage POS guides borrowers through a mortgage application, allowing them to upload the necessary information and documentation. It also acts as a communication portal with their lender. This reduces the time and complexity of the lending cycle because it allows borrowers to complete these tasks at their convenience and securely stores their information in an easily accessible digital portfolio.
But a quality mortgage POS can do so much more…
Digital Mortgage POS Integrated With Automated Verification
Mortgage POS platforms that integrate with data verification solutions further streamline mortgage origination by automating income and employment verification. This has massive benefits for lenders, including:
1. Saving on operational costs
The average cost of originating a mortgage has risen for six consecutive quarters, and a large portion of that increase is attributed to verifying income and employment information. Part of the reason for this is lenders need trained personnel to ensure regulatory compliance.
An automated verification solution can greatly reduce the manpower lending institutions need to process mortgage applications. When integrated into a mortgage POS, it allows credentialed access to data networks that automatically provide the required borrower information.
2. Accelerating lending cycles
Integrating an automated VOIE solution into a mortgage POS also reduces the time it takes to originate a loan. This allows lenders to process more applications with fewer employees.
3. Enhancing decision-making
Not only do automated verification solutions reduce the time and cost it takes to verify income and employment, they use enriched data to provide deeper insights into a borrower’s history. This allows lenders to help customers shop around for the most competitive rates, and enables them to make faster, more informed decisions.
4. Accommodating market fluctuations
Because lender operations weren’t advanced enough to handle sudden market fluctuations, the sharp increase in interest rates in 2022 led to mass layoffs. Digital solutions can accommodate sudden changes in the market, which spares lenders the pain and frustration of hiring and paying high salaries to professionals when the market is hot, and firing them when interest rates climb again.
5. Improving customer experiences
By reducing the time and complexity of the lending cycle, and making it as easy as possible for borrowers, lenders can build trust in their institution and stronger relationships with their clients.
The Perfect Solution for Mortgage Lenders
Together, BeSmartee and MeasureOne deliver the ultimate mortgage POS for lenders. MeasureOne provides industry-leading coverage of enriched borrower data. When integrated with BeSmartee’s mortgage POS, it prompts borrowers to provide credentialed access to their income and employment information, which is then automatically retrieved by MeasureOne.
Automating verification of income and employment is one of the easiest ways lenders can maximize their operational efficiency and position themselves to respond effectively to changes in the market. It also creates a better borrower experience by reducing the time and complexity between application and origination.