The 3 most common complaints about the mortgage lending process
Avoid these mortgage lending process issues to win repeat business and referrals
We scoured the internet in a review of the most common complaints that are leveled at loan officers about the mortgage lending process. We looked at not just what borrowers had to say, but real estate agents as well.
Why is this important? Because 92% of consumers reported that they read online reviews of businesses, with 40% of consumers forming an opinion from just 1-3 reviews. Avoid public complaints and negative reviews like the plague to keep organic leads coming into your pipeline.
1. Poor communication
We talk about the benefits of great communication and multiple weekly touch points all the time, but the fact is that this is also the single most common complaint in the mortgage lending process. Both borrowers AND real estate agents want to know that the lines of communication are open. The phrase used most is: calls and emails were not returned within a reasonable timeframe.
In the discussion forums that we investigated, real estate agents complained that when a loan officer doesn't communicate well, the real estate agent themselves become the person in the crosshairs of the borrower(s). Let's just say that this is not a good way to earn repeat referral business.
It's hard to always be on top of every call and email that comes in to the office. One way to help lighten the load is to preemptively answer many of the questions before they're even asked. Using automated status updates to keep borrowers and referral partners in-the-know will help curb some of the "what's going on with my loan?" and doesn't require a Herculean effort.
Communication is key
Turn the biggest borrower complaint into one of your strengths
2. Having to send the same documents more than once
Borrowers know when they start the lending process that there will be quite a bit of personal documentation required of them. It takes time to gather your bank statements, pay stubs, tax returns, etc, and then more time to organize the docs to send to a loan officer. From a borrower's perspective, this is the most time consuming and tedious aspect of the mortgage lending process.
After finishing all of that, being told that the loan officer either can't find, or lost, or "never received", your documents is definitely one of the most frustrating experiences a borrower can go through.
Utilizing a mortgage document management system with a consumer-facing portal will all but eliminate these issues. A document management system will not only show your borrowers the status of their documents, but will also keep a loan officer organized on a file-by-file basis.
When we built Floify's borrower portal, we utilized the red/yellow/green bucket system so that borrowers would intuitively know the status of their documents. Simple automated email messages let them know if a document had to be rejected for any reason, if there are new document requests in their portal, or if they're all done!
3. The process takes longer than average
This issue tends to be compounded by the first two common complaints. Sometimes there are road blocks that can't be avoided on the path to closing, but what really frustrates borrowers and real estate agents is when this isn't communicated.
For many people, not closing on time is something that they can deal with, as long as they know. Real estate agents speak to how frustrating it is when a loan officer they're working with doesn't bring up issues with the loan until it is no longer salvageable in the original timeframe. Even if your intention is to try to fix the issue and get the loan back on track, it's better to under-promise and over-deliver.
By using good systems that keep a file organized and by communicating early and often with your borrowers and real estate agent partners, you can avoid these common negative remarks.
Moreover, by flipping these issues around and providing excellent communication and a well organized platform, you can win positive reviews and referrals.