Eight Key Advantages of Using Mortgage POS Technology
Borrower expectations are in a constant state of evolution. The need for efficient, user-friendly systems has never been more critical.
31% of borrowers abandon their mortgage application, while 25% of these borrowers say they didn’t finish because the application process took too long, which significantly impacts pull-through rates. 2022 Borrower Insights Survey by ICE Mortgage Technology
So, what can be done about these challenged conversion metrics?
Mortgage point-of-sale (POS) technology simplifies the loan origination process for brokers and borrowers while offering numerous benefits that enhance their interaction. Top-tier POS systems, drive exceptional borrower experiences and keep borrowers connected, from application to close and beyond.
Here are 8 key advantages of using a mortgage POS to automate and streamline the loan origination process, improve conversion metrics, and close more loans faster.
1. Enhanced User Experience
Mortgage POS technology simplifies the application process for borrowers. Accessible from any device, borrowers can input information and track progress in real-time, eliminating lengthy meetings and reducing paperwork. Saving time is key to customer satisfaction. The best POS technologies only ask for what is needed, when it is needed.
71% of consumers say saving them time is the best thing a company can do provide excellent customer service.
2. Improved Efficiency and Productivity
Automating steps in the mortgage loan origination process also saves time for brokers. Mortgage POS technology automates document collection, data verification, and simple communication, allowing brokers to focus on higher value tasks, such as relationship building. As a result, mortgage professionals can handle a higher loan volume without sacrificing quality, leading to increased productivity and profitability.
3. Reduced Human Error
The mortgage loan origination process is complex and involves managing vast amounts of information. Manual data entry and verification is prone to human error. Automation ensures data accuracy and consistency, minimizing errors that could cause costly delays.
73% of consumers say that valuing their time is the most important thing companies can do to provide them with good customer service.2015 Forrester Customer Lifecycle Survey
4. Enhanced Security and Compliance
Mortgage POS technology offers robust security measures to protect sensitive borrower data from potential breaches. Advanced encryption and authentication protocols ensure only authorized users access the platform. The best POS technologies proactively keep up with changing regulations.
5. Improved Communication and Collaboration
Clear communication between borrowers, brokers, realtors and other parties is crucial to successful mortgage loan origination. Mortgage POS technology simplifies communication by offering a centralized platform where all parties can collaborate, share information, and receive real-time updates, resulting in faster decision-making.
6. Data-Driven Decision Making
Advanced analytics and reporting tools within mortgage POS technology provide valuable insights into borrower behavior, market trends, and loan performance. These insights enable brokers to make informed decisions and develop targeted marketing strategies, while lenders can assess credit risk more accurately, leading to better loan approval rates and reducing default likelihood.
Loans supported by a digital point-of-sale system like Floify reach a clear to close status 7.5 days faster. John Norris, VP of Technology & Innovation, Benchmark Mortgage
Whether a business is in a growth phase or looking to do more with fewer resources, the capacity to scale operations is always important. Top tier mortgage POS technology can easily adapt to changing loan volumes, evolving business requirements, and changes in workforce, all while ensuring brokers continue to provide exceptional service. It is important to choose a flexible system that won’t require costly, time-consuming system upgrades as the business evolves.
8. Post-Close Client Care
The best point-of-sale systems allow brokers to maintain and nurture relationships with their clients long after the loan has closed, providing LOs with an important retention tool. Adding value post-close, for example by offering a free moving concierge or home management app keeps the broker top-of-mind throughout the borrower’s home ownership journey.
The mortgage point-of-sale platform is a must-have component of the loan origination process. The best POS solutions lead to more efficient, secure, and enjoyable experience for brokers and borrowers. By adopting POS technology, mortgage professionals can streamline operations, improve communication, increase productivity and profitability, and stay ahead of the competition through continuous innovation.