STRATMOR Study Finds Borrower Satisfaction Driving Lender Technology Decisions
Lenders rank “increased borrower satisfaction” as the top perceived benefit of new digital mortgage capabilities, according to mortgage advisory firm’s 2019 Technology Insights Study
OCTOBER 30, 2019 – GREENWOOD VILLAGE, CO – According to the 2019 Technology Insight™ Study (TIS) from mortgage advisory firm STRATMOR Group, improving the borrower experience is the key driver for implementing technology with three of the top five perceived digital benefits specifically focused on enhancing borrower satisfaction with the loan process.
, “As with years past, lenders ranked increased borrower satisfaction, faster cycle times, increased transparency for borrowers and greater task, service orders and workflow automation as the top four benefits of digital mortgage,” said STRATMOR Senior Partner Nicole Yung in her article, Six Key Takeaways from STRATMOR’s 2019 Technology Insight™ Study. “Technology limitations impact many of the barriers to digital capabilities, but lenders report the benefits of digital are worth the effort,” Yung wrote.
The TIS is the only independent technology study in the industry that gathers data on how lenders feel about their mortgage technology, including both their own systems and those provided by vendors. The TIS includes comprehensive mortgage technology data, analyzed and quantified by STRATMOR’s team of data experts.
The 2019 study found that for the fifth year in a row, Ellie Mae holds the top spot among point-of-sale (POS) mortgage systems. Other systems are gaining ground, however, including Blend, which finished in the number two spot for the second straight year.
In the lead management/customer relationship management (CRM) market, more than 20 percent of respondents said they do not use a company-sponsored lead management tool, while almost 6 percent said they use either a CRM built into their LOS or use an internally-developed CRM. The study also found that among the almost 80 percent of lenders using a CRM, 74 percent use one or more of the 25 third-party systems sharing the CRM market. Of those 25 systems, Top of Mind, Velocify and Salesforce held the top three spots, according to the TIS. Salesforce gained almost five points, followed by Velocify, which gained two. Top of Mind held 20 percent of the market, according to the study.
The study found that the number of loan origination system (LOS) platforms used by lenders in the study is falling due to industry consolidation from M&A deals, fewer multiple-system offerings from vendors and because some platforms haven’t kept up with regulatory changes and new technologies, among other factors. The number of LOSs identified as the primary system used by lenders participating in the study has dropped 36 percent over the past four years, from 33 LOS platforms in 2015 to 21 platforms in 2019, according to study.
STRATMOR found 20 percent of lenders utilize robotic process automation (RPAs) to automate business processes, with most using them in the processing and post-closing areas. The study also shows that 75 percent of those lenders use a third-party provider to implement RPA in their businesses. UI Path, Blue Prism and AIF were the most popular third-party providers, and all offer training and certification in RPA through their websites, the study found.
The article also notes that while technology is capable of improving the borrower’s experience, mortgage professionals using the technology have the greatest potential to make the borrower’s experience better.
In a second article in the report, ”A Tale of Three Borrowers,” STRATMOR Marketing Director Lisa Grote echoes that thought. She writes about three STRATMOR mortgage experts who recently applied for mortgages and had very different loan origination experiences. Grote found that while technology can enable a better borrower experience, it is the mortgage professionals who worked with the borrowers who made the mortgage experience memorable.
Click here to download the October 2019 edition of STRATMOR Insights Report.
About STRATMOR Group
STRATMOR Group is a leading mortgage industry advisory firm that provides a range of programs and services designed to counsel lender CEOs and senior executives. STRATMOR serves more than 250 companies annually, providing strategies that increase growth and improve profitability in sales, marketing, technology, operations and mergers and acquisitions. The company leverages comprehensive, propriety data and key insights gained through extensive experience in the mortgage industry. STRATMOR is well known for its financial models and its collaboration with the Mortgage Bankers Association in the PGR: MBA and STRATMOR Peer Group Roundtables Program. Find out more about STRATMOR on its website at http://www.stratmorgroup.com.