For busy loan originators who want to understand their general efficiency level, there is no better “30,000 foot” metric to evaluate than the average loan cycle time, which can be improved through the use of a mortgage point-of-sale system.
Sure, it’s more effective to understand the intricate details of each individual stage that your loans pass through. Nevertheless, as a holistic measurement, it’s hard to beat the impact that reducing overall loan cycle time has.
Obviously, borrowers want their loan funded quickly. However, for the loan originator, there is a tangible impact on the bottom line when loan files turn faster.
Referral sources send business to their most efficient partners. Borrowers give their business to a lender who is going to close their loan fast. With this quick loan cycle time, the originator has more time dedicated to generating even more business.
The positive effect on the bottom line can be tremendous.
In today’s tech-driven world, the key to decreasing cycle times is to employ a robust mortgage point-of-sale system. The reasons are multi-fold, whether due to the specific functionality or increased borrower accountability.
Having a modern, well-thought-out loan application is critical in beginning the loan processing stage.
If designed well, it’s easy for borrowers to complete and submit. Modern mortgage POSs like Floify also utilize TurboTax-like section reviews so borrowers must double and triple-check their information for accuracy.
Including the loan application as part of the point-of-sale and not as a separate system allows information to flow easily into the POS. This makes file setup that much more simple.
Next-generation 1003’s use business logic to create needs-lists for borrowers based on the application submission. This allows borrowers to immediately begin collecting and submitting documents into the POS without ever needing to speak to someone on the origination team.
This optimized process provides the jumpstart a loan file needs to process quickly and land on an underwriter’s desk.
Document Collection and Management
A core function of the modern mortgage POS is to provide a secure and intuitive place for borrowers to upload supporting documentation.
With so many documents now digitally available – bank statements, tax returns, W2s, asset statements – it’s easy for borrowers to download the necessary docs from their bank or tax preparer and, in a couple of clicks, upload these documents to their file. No faxing, no mailing, no dropping off documents in-person.
All documentation is organized in one central location, making it incredibly intuitive for borrowers to know what they’ve already submitted and what they still owe. Even credit reports can be ordered from and delivered directly to the point-of-sale.
Lenders who take advantage of Fannie Mae’s Day 1 Certainty program can attest to how quickly files come together when direct-source data integrations are used to retrieve borrower documentation. Bank statements, tax returns, and other docs are pulled directly from the corresponding institution. This makes the collection of important documents instant as well as 100% accurate.
Often, loan files drag their way through processing because of document gathering issues. With a well-designed mortgage point-of-sale, you can shave days off the collection process and focus on attracting new business.
Keeping borrowers accountable for their responsibilities throughout the loan process is the bane of most originators’ existence.
Documents aren’t submitted, disclosures aren’t signed on time, and simple tasks are forgotten or ignored.
With a modern mortgage point-of-sale, the system itself consistently prompts borrowers to return to their POS to finish outstanding tasks. The accountability that this system creates through these reminders pushes borrowers to complete tasks in record time.
Furthermore, this type of system easily handles changes in conditions or needs. It notifies borrowers of these changes and allows them to respond quickly.
Borrower accountability is crucial to a speedy process and a short loan cycle.
Both the availability and acceptance of eSignature have risen dramatically over the last few years, for good reason. eSignature gives originators a tool to combat disclosure deadlines imposed by TRID. This helps the sending and signing of disclosures be completed as quickly as possible.
Of course, eSignature isn’t limited to just the Loan Estimate and Closing Disclosure. With the exception of one or two wet-only signature requirements, most documentation required during the loan process can be signed electronically.
Floify’s modern point-of-sale system combines all of the above functions into one convenient and easy-to-use package, along with many other features that aid in lender/borrower communication and custom pre-approval letter generation.
With a POS system like Floify, you can produce a superb and smooth experience for your borrowers. Your loan cycle times will shorten, and the accuracy of your loan files will increase. These aspects lead to shorter turn times on the underwriter’s desk, a funded loan, and a new home for your client.