On June 6, 2024, Stavvy sponsored “From Paper to Pixels: How to Deliver a Superior Digital Mortgage Experience for Your Members”, a webinar hosted by Credit Union Times.
Stavvy’s Chief Strategy Officer, Angel Hernandez, was joined by Jeff Bode, President and CEO of Click n' Close and Josh Livingston, EVP of Sales at FirstClose to discuss the impact of digitization in the mortgage lending process for credit unions and their members.
Here are five key takeaways from the webinar.
Hernandez kicked off the discussion by asking Bode what he’s hearing today regarding key focus areas for investments in digital mortgage technology. Bode commented, “Everyone is looking for somebody else to lead and make this work.” He continued by saying that he’s unsure why lenders haven’t moved further forward on eClosing, adding that, in his experience, eClosing saves lenders approximately $400 per file. Given these cost savings as well as the time savings provided by eClosing, Bode describes it as a “no-brainer” for lenders to adopt now.
Livingston added that investing in technology can also reduce the need for human intervention. Given the thin margins, particularly on the home equity side, these transactions need to be completed quickly and at scale to safeguard profitability. Leveraging technology can make the home lending process more efficient by reducing the need for manual intervention and reducing costly errors. In doing so, the home lending experience can be streamlined for all parties while providing financial efficiencies for lenders.
While lending partners are focused on efficiency, members are seeking choice. Livingston explained that while not everyone will embrace a fully electronic closing package, if lenders don’t offer it, they are limiting choice. Regardless of the generation they belong to, more consumers are online than ever and crave the convenience of performing transactions at their fingertips. Not everyone will sign up for it, but lenders must offer choice to serve the diverse needs of their communities. Organizations should strive to deliver personalized home lending experiences that make transactions easy, no matter how members choose to interact.
While Bode recalled pushback when eClosing was first rolled out, he also remembered how quickly staff embraced it after they experienced its efficiencies firsthand. In addition to the ease of use for both lenders and consumers, it also allowed lenders to sell the loans and get them acquired quicker and with fewer mistakes.
Livingston agreed that no matter how positive digital transformation is, it can still be scary for staff who are worried about technology replacing people. He encouraged lenders to reframe solutions like eClosing as tools that empower lenders to focus on what’s most important - the member experience. Outsourcing mundane tasks to technology allows lenders to focus on customer experience, enhancing their jobs by maximizing interactions with members.
Hernandez asked the panelists for their thoughts on SMART Docs® and how it can drive the next phase of digital transformation in home lending. Bode offered the opinion, “I think SMART Docs® will probably be the biggest game-changer in the industry to date.” He explained that by eliminating the need to key in data, all parties will know the information is correct because it came from a verified source. Bode is excited about the opportunities that lie ahead for SMART Docs®.
Livingston agreed wholeheartedly, particularly from the perspective of creating additional liquidity. When asked about the benefits of being able to produce loan documents that can be read natively and verified for consistency and accuracy, he affirmed Bode’s response. “The whole process is about using technology to remove issues and errors, speed up the process, and create a better member experience.” He continued, “If you can remove barriers through technology, you’re leaps and bounds ahead of others because you’re going to create extremely efficient and happy member experiences.”
Click here to watch the webinar recording.
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