How to Choose the Right Mortgage Origination System for Your Credit Union
In its simplest form, mortgage lending technology serves as a digital tool that can significantly streamline and automate the lending process at all stages of the homeownership journey. For credit unions and member-owned financial cooperatives, this technology is pivotal in streamlining operations and enhancing service delivery for members and employees.
For credit unions, it's essential to understand what lending technology does, how its design assists in credit union operations, and the different digital tools available to scale for time, retention, and growth. It’s also important that loan officers at credit unions connect with borrowers at the right time. According to McKinsey, 35% of borrowers select a lender within 3 days after starting their home search, which means every missed moment has the potential to be a lost opportunity.
To remain relevant, credit unions must deliver the right experiences at the right time, and choosing the right technology partner is a key part of that strategy.
How do you know your credit union is making the right choice? Below are six key factors to consider when choosing your mortgage lending technology:
Ease of Use: The technology should have a user-friendly interface and require minimal training. The right technology partner providers should offer ample support for implementation and training.
Customization and Scalability: Your chosen technology partner should be customizable to fit your credit union's unique needs. Scalability is also crucial to grow your credit union and allow you to embrace opportunities to thrive.
Integration: Your technology partner should integrate seamlessly with your existing systems and allow for easy data migration.
Security and Compliance: It's critical that your lending technology partner prioritizes data security and adheres to all relevant regulations and standards.
Cost-effectiveness: Consider the balance between cost and value. The total cost of ownership should include both upfront and ongoing costs.
Reputation and Support: Vendor strength and stability is more important than ever. Check the vendor's reputation, read customer reviews, and ensure they offer responsive customer support and have referenceable customers.
The adoption of efficient mortgage lending technology is a critical step for credit unions to streamline their operations, enhance service delivery, and foster growth. The right technology should be easy to use, customizable, scalable, integrable with existing systems, secure, cost-effective, and backed by a reputable provider.
“We wanted a system that was going to evolve and grow with us, specifically in the commercial and business space,” said Lance Hatzenbeller, Senior Vice President of Customer Services at Idaho Central Credit Union.
“With nCino, we are better able to serve our business members by providing them a “one stop shop.” The experience is all in one place for them. They can open a membership and apply for a loan, all in one go.”
As the financial landscape continues to evolve, credit unions must adapt by leveraging digital tools that not only meet their unique needs but also provide value for their members. By doing so, credit unions will be better positioned to deliver timely, modern experiences that resonate with their members and ultimately drive their success in a competitive market.
The mortgage industry has seen some significant changes in recent years with the introduction of digital technology solutions. Organizations are increasingly turning to technology for avenues of competitive advantage, leading many companies into a state of flux as they adjust their business model and digital mortgage strategies to create and maintain profitability with long-term success.
In the current economic climate, mortgage and real estate professionals are facing significant challenges. Rising interest rates, low inventory and high loan production expenses are impacting the market, leading to a decrease in refinancing volume.
Amid this increased competition, there’s a pressing need for lenders to build and maintain strong relationships with real estate agents to bolster their referral base. That’s why a referral strategy that helps you leverage existing relationships and build new ones is so crucial.
In our rapidly evolving mortgage industry, eClosings are becoming increasingly popular due to their ability to provide a seamless, efficient and cost-effective solution for lenders, settlement agents and borrowers. In nCino’s recent white paper, we dive deep into the concept of eClosings, their benefits and how to best select an eClose solution.
Digital Transformation: How eClosing is Shaping the Mortgage IndustryThe days of lengthy, paper-based mortgage closings are giving way to the digital age. More and more, we’re seeing a shift towards digital closings, which are rightfully earning a reputation as the “gold standard” in the mortgage industry.
Why are borrowers and lenders flocking towards this technology-driven solution? Their simplicity, efficiency and the capacity to meet evolving consumer demands are key benefits for lenders, while borrowers are particularly charmed by quicker closings and the convenience of a completely digital mortgage experience.
Beyond their appeal to borrowers, eClose solutions yield remarkable benefits for lenders and settlement agents. From a cost perspective, significant savings per loan are realized when leveraging this digital space. The reduction of human error, improved loan quality and reduced processing/funding cycles make eClosings all the more lucrative for these stakeholders.
Credit unions represent a unique sector within the world of finance. They offer an exceptional service to their member base, backed by competitive loan offerings. In order to deal effectively with this unique operational model, credit unions' lending technology needs to align correctly.
Applying for a mortgage can be a daunting experience. From collecting and organizing paperwork to completing lengthy application forms, the process can be time-consuming, stressful, and prone to errors. With the help of the right digital mortgage experience and a point-of-sale (POS) solution, however, the mortgage application process can be streamlined and simplified for the customer or member, real estate professional, loan officer, title and settlement partner.
Keep reading to learn five reasons innovative financial institutions are choosing a digital mortgage solution with a built-in point-of-sale solution to modernize the home lending experience:
Power lending experiences with a user-friendly interface.One of the biggest advantages of a digital mortgage experience combined with a point-of-sale solution is the user-friendly interface. With one login, each stage of the mortgage transaction is streamlined across all stages of the journey. The right solution simplifies application processes and provides customers with a simple, easy-to-navigate workflow that guides them through the application process step-by-step. It also empowers real estate agents and lenders to provide pre-approval letters at their office, or more conveniently through a mobile device. This ensures customers provide all the necessary information and reach key milestones, and it makes the application process less intimidating and more accessible. The right solution must also make the experience just as simple and seamless for customers that prefer to work directly with their loan officer. With a native mobile experience, customers can apply for a mortgage, receive approval, and close on their home, all from the convenience of a mobile device.
