Welcome to the future, it’s finally here for the mortgage industry! Don’t blink; this is going to happen fast! “Fast” and “mortgage” aren’t terms that normally go together, but they’re about to! The digital mortgage revolution is here and the change will seem to happen overnight. When it does, the industry’s efficiencies will increase tremendously!
It currently takes an average of 40 days to close a loan and costs a lender more than $8,000 to complete the current mortgage process. Let’s be honest, it’s been tough to be a homebuyer post-Dodd Frank and TRID. This applies at all points in the process, from just thinking about a home to budgeting for a home to finding a realtor to finding a lender. Thankfully, the digital mortgage will speed up the process. But the process isn’t everything, and the Resource TV believes automation may be the Achilles heel for a mortgage company that is tech heavy and relies on a consumer-direct model.
This brings up another challenge for the digital mortgage revolution. They call it the “Apple effect.” Apple made it easy for us to attest and agree to any of their terms and conditions. We just simply scroll to the bottom of the 17-page Apple disclosure and click “yes, I agree.” But you know just as much as I do that we literally have no idea what we just agreed to! You could have just given your kids away and you would have no idea! That’s what the Resource TV worries about in terms of the mortgage industry right now. The hosts love the idea of the e-signature, but worry the Apple effect may take hold in the digital mortgage world. This would then promote the opposite of financial literacy.
Their solution is to slow down and implement some measures to ensure consumers really do understand what they are signing up for. This episode highlights a few of the good and bad points regarding the digital mortgage and the future of our industry.