How Credit Unions Can Meet Rising Member Expectations with Mortgage Automation

As we move further into 2024, credit unions must keep pace with rapidly evolving member expectations, especially in mortgage lending. Members are increasingly seeking seamless, efficient, and transparent digital experiences, and mortgage automation can be the key to meeting and exceeding these expectations.

Here are the insights credit unions need to know about their member's digital preferences, and how they can leverage new advances in mortgage technology to stay ahead of rising expectations.

60% of borrowers cited an easy process from start to finish as a crucial factor in their most recent mortgage experience2024 Borrower Insights Survey by ICE Mortgage Technology

Understanding Member Expectations

Members today are influenced by the convenience and speed of digital experiences in other industries. They expect similar efficiency when dealing with financial institutions, including their credit unions. According to the ICE Mortgage Technology 2024 Borrower Insights Survey, 60% of borrowers cited an easy process from start to finish as a crucial factor in their most recent mortgage experience, up from 55% in 2022.

Moreover, borrowers emphasized the importance of lower costs and good communication. Fifty-five percent of respondents listed lower costs as one of the top three factors in their lending process, while 50% highlighted the importance of communication and follow-up. Transparency was also crucial, with 40% of borrowers noting its significance.

The Role of Mortgage Automation

Mortgage automation involves using technology to streamline the entire loan process — from application to closing. By automating repetitive tasks, providing digital interfaces, and delivering timely updates, credit unions can significantly enhance the member experience in addition to improving internal process efficiency.

Some of the benefits of mortgage automation include:

1. Speed and Efficiency: Automated processes reduce the time it takes to approve and close loans. According to the survey, 65% of borrowers used an online application in 2023, up from 60% in 2022. This increase shows a clear preference for the convenience and accessibility of a digital offering.
2. Accuracy and Compliance: Automation minimizes human error and ensures that all compliance requirements are met, reducing the risk of costly mistakes.
3. Enhanced Communication: Automated updates via email or SMS keep members informed throughout the loan process, addressing the need for good communication noted by 50% of survey respondents.

How Credit Unions Can Meet Member Expectations with Technology

The new generation of mortgage technology systems deliver a wide array of benefits for lenders of all types, but particularly in areas important to credit unions and their members.

67% of borrowers were influenced by the availability of online portals for document uploads, up from 59% in 20222024 Borrower Insights Survey by ICE Mortgage Technology

Seamless Digital Experience

• Self-Service Portals: Members prefer to manage their applications online at their convenience. Offering a user-friendly portal for application submission, document uploads, and status tracking can significantly enhance member satisfaction. The survey noted that 67% of borrowers were influenced by the availability of online portals for document uploads, up from 59% in 2022.
• Mobile Accessibility: With 73% of Gen Z and Millennial borrowers influenced by the availability of a mobile app, having mobile-friendly interfaces is crucial.

Transparent and Frequent Communication

• Automated Notifications: Keep members in the loop with real-time updates on their application status. This reduces anxiety and builds trust.
• Personalized Messaging: Tailor communications to individual member needs and preferences, enhancing their overall experience.
• Real-Time Application Tracking: Members can track their loan application status in real-time, reducing anxiety and improving satisfaction. This transparency is key, as 70% of borrowers said that being offered an online application influenced their decision to work with a particular lender.

Efficiency and Speed

• Document Management: Automated document collection and processing tools speed up the loan approval process, meeting the demand for quicker turnaround times. Sixty-five percent of borrowers used online portals for electronically signing and notarizing documents in 2023, up from 61% in 2022.
• Mortgage Application: Mortgage technology simplifies the loan application process, allowing members to complete and submit their applications online at their own pace. According to the ICE Mortgage Technology 2024 Borrower Insights Survey, 65% of borrowers used an online application, with 70% stating that the availability of an online application influenced their decision to choose a particular lender. This streamlined approach not only saves time but also enhances accuracy and reduces errors, leading to a smoother and more efficient application process.

Real-World Impact

ICE Mortgage Technology's survey found that 60% of borrowers described their most recent mortgage experience as easy, reflecting the positive impact of automation. However, only 36% rated their online experience as great, indicating room for improvement in how these experiences are being delivered. This highlights the need for credit unions to continuously enhance their digital offerings to meet growing expectations.

36% of mortgage borrowers rated their online experience as great, indicating room for improvement2024 Borrower Insights Survey by ICE Mortgage Technology

Additionally, 90% of borrowers stated that their most recent lender met their expectations, with more experienced borrowers being particularly satisfied. This shows that credit unions have the potential to deliver outstanding service by leveraging advanced technologies.

In 2024, member expectations are higher than ever, driven by the digital experiences they encounter in every aspect of their lives. By adopting mortgage automation, credit unions can not only meet but exceed these expectations, providing a seamless, efficient, and satisfying experience for their members. This investment in technology not only improves operational efficiency but also strengthens member loyalty and drives growth.