Mortgage Point-of-Sale? the What and the Why
The mortgage industry has been rapidly moving to adopt technology systems that allow lenders to increase efficiency and thus reduce the overall cost to originate a loan – all while offering homebuyers a more streamlined, transparent, and technologically-enabled process by which to secure a loan.
With this adoption has also come more definition. Where in the origination process do systems need to have an impact in order to create a positive return on the investment?
Originators know they will need an LOS, or a collection of services to act as an LOS, to serve as their backend fulfillment center. A quality mortgage CRM helps professionals organize their customer data and structure their sales and marketing activities.
The new kid on the block? A mortgage point-of-sale system.
But what exactly is it?
The mortgage point-of-sale system is the one piece of your technology stack as a lender that will actually interface with your customers and provide them with what they need to transact business with you digitally. Common components of a mortgage POS include an integrated loan application, a secure web-based portal for a borrower to track progress of their loan and upload documentation, optional direct-source data verification services, the power to disclose within the point-of-sale with eSignature.
Other bells-and-whistles we see are pricing and decision engines, as well as a direct connection to an automated underwriting system to allow for a quick pre-qualification decision upon application.
The advantages for borrowers are myriad, but loan originators also generate significant return via process efficiency, digital organization and the speed it affords, and borrower satisfaction.
There is a clear movement in the industry towards this piece of software. It is rapidly becoming “table stakes”, or a basic necessity in the current environment.
We’ve written about the changing demographics of homebuyers (Millennials!), the growing importance of a mobile-friendly platform, and the business virtues of mortgage software. All of which would confirm the need for this type of software.
But if you need more proof that mortgage point-of-sale software is being viewed as a critical component of a modern lending process and consumer borrowing experience, just take a look at how about big banks such as Wells Fargo, Chase, and US Bancorp are inking deals with tech partners to provide such a service. There’s also nonbank lenders such as Bay Equity, Movement Mortgage, Guild Mortgage, and others partnering up to launch their mortgage point-of-sale system.
Quicken Loans? They made their name (and LOTS of money) by being one of the first to offer the type of mortgage point-of-sale system that digitally-inclined borrowers were seeking.
This is all to say that this movement and embracement of the mortgage POS is a good thing for the industry. It will push technology vendors (like us!) to continue to update and improve the solutions they provide, and tailor them to the needs of their customers – mortgage lenders and loan originators like you.