Are Consistently Error Free Closings Within Reach For Lenders?

Welcome back to iLeads Mortgage Market Minute, where we bring you the latest, most relevant news regarding the mortgage market. We hope you enjoyed last week’s edition where we talked about Construction Numbers Pushed Higher by Multifamily Surge. This week we’re bringing you:

Loan origination complaints spike during pandemic*

White borrowers are more likely to complain about loan origination issues, agency says

Loan origination-related consumer complaints rose significantly over the first 18 months of the COVID-19 pandemic, according to a Consumer Financial Protection Bureau’s (CFPB) report published last week.

The bureau’s research brief, which analyzed the relationship between U.S. Census characteristics and the share of consumers complaining about each stage of the credit life cycle, found that between February 2020 and July 2021 there was a “large increase in the volume of consumers with credit reporting and loan origination complaints.”

Specifically, the bureau said that loan origination complaints, mainly driven by mortgage complaints, were 50% higher in 2020 than at the beginning of 2018. The complaints mainly stemmed from communities that were predominantly white and had relatively high incomes, the report noted.

“Much of this volume appears to be related to refinancing of existing mortgages as consumers try to take advantage of historically low interest rates,” the bureau added.

The report found that the number of consumers with credit reporting complaints continued to rise in 2020 from already elevated levels in 2019.

“Because of its unique role in the credit life cycle, downstream from past credit and upstream from new credit, the increase in the number of consumers with credit reporting complaints may also bear some relationship to consumers’ attempts to improve credit scores as they seek new credit, especially given current mortgage interest rates,” the report said.

Read more in-depth here.

How two Fed president resignations will affect Federal Reserve policy*

Bill Lee, chief economist at the Milken Institute, joins The Exchange with his expectations for upcoming Federal Reserve policy and how it will affect the markets. “This is not your grandmother’s inflation,” Lee tells Kelly Evans. This period of inflation is driven by supply shortages, not high demand, Lee argues.

Read more in-depth here.

Are consistently error free closings within reach for lenders?*

Snapdoc’s digital platform automates parts of the closing processes to keep lenders moving efficiently

Largely driven by record-low mortgage rates, lending volume surpassed everyone’s expectations in the past year. But as lenders scrambled to keep up with demand, closing errors naturally crept in.

In the wake of this unparalleled volume, companies across the housing industry have been working to increase the efficiencies of the entire lending process – including getting closings correct the first time around. Many lenders looked to digital solutions to make this happen.

A prime example, digital mortgage closing solution Snapdocs reports that its digital closing platform reduces closing errors by 80%. The platform has helped hundreds of lenders close faster by dramatically reducing the number of missed signatures, initials and more. But Snapdocs isn’t stopping there. The company recently announced the launch of Closing Quality Control, an enhancement made specifically for eliminating any remaining errors in the closing process.

Happier borrowers

A recent borrower study by McKinsey found that “getting things right the first time” is the No. 1 improvement borrowers want their mortgage provider to prioritize. The team at Snapdocs took this data to heart when developing Closing Quality Control.

By eliminating errors through Closing Quality Control, lenders will be able to provide a better borrower experience and put their borrower’s needs first. Borrowers are getting more than a faster, more convenient closing. When it’s done right the first time, borrowers avoid missing closing dates and repeating steps in the closing process. This means less stress during escrow, resulting in a gratifying closing experience and happy customers.

Read more in-depth here.

Finding highly affordable leads to keep sales coming in

At iLeads, we have many great solutions for mortgage LO’s at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!

We’re free and are taking phone-calls from 7AM to 5PM PST, Monday through Friday.

You can also schedule a call here.