DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/1527854
5 October 2024 October 2024 ยป M T E C H SURVEY REVEALS OPPORTUNITIES FOR EXPANDING DIGITAL VERIFICATION TOOLS A s the mortgage industry increas- ingly embraces technology to streamline the homebuying pro- cess, a recent survey reveals a significant opportunity for broader adoption of digital verification tools. Despite the efficiency and simplicity these tools offer, many homebuyers remain unaware or hesitant to use them, indicating a need for greater industry outreach and education. The survey, conducted earlier this year, focused on homebuyers who pur- chased a property with a mortgage ac- quired by Fannie Mae between January and November 2023. By comparing this data to a similar survey conducted three years ago, the study highlights key trends in consumer behavior and preferences regarding digital mortgage technology. Growing Interest in Digital Mortgages T he survey found that interest in a more or fully digital mortgage process has surged, with many recent homebuyers expressing a strong pref- erence for online channels. This trend spans all demographic groups and marks a significant shift from 2021 when such preferences were less pronounced. Homebuyers value the speed and simplicity digital tools bring to the mort- gage process. According to the survey, 75% of respondents cited accelerated processing as a top benefit of digital mortgages, while 71% appreciated the ease of completing steps online. Underutilization of Digital Verification D espite the enthusiasm for digital solutions, the survey revealed that many homebuyers were not offered the option to use digital verification tools during their mortgage process. Digital verification allows borrowers to grant lenders or third-party service provid- ers (TSPs) access to their online bank accounts to verify employment, income, and assets, eliminating the need for man- ual submission of financial documents. Only about one-third of respondents reported being asked to use digital verification for closing or down payment fund verification. Among those offered the option, most agreed to grant access. However, 4% declined, citing data secu- rity concerns as their primary reason for opting out. Interestingly, experience with digital verification seems to play a significant role in future adoption. Slightly more than half of those who used digital verification for their current mortgage said they would use it again. In contrast, only 15% of those not offered the option indicated they would use it in the future. Experience Matters for Adoption T he survey results suggest that familiarity with digital verification technology can help alleviate concerns about privacy and data security. Respon- dents who had positive experiences with the technology were less likely to worry about these issues and more inclined to use digital channels for other homebuy- ing tasks. "Effective communication between loan officers and homebuyers is key to driving greater adoption of this technol- ogy," the survey report noted. "Potential borrowers need to clearly understand what digital verification is, how it works, its benefits, and how its risks are man- aged and mitigated." Call for Broader Adoption T he findings indicate a strong poten- tial for expanding the use of digital verification tools across the mortgage industry. By proactively offering these options and educating consumers about their benefits, lenders can help normal- ize the use of digital tools and further streamline the homebuying process. As technology continues to evolve, the industry stands at a pivotal moment where embracing digital verification could enhance efficiency, reduce costs, and improve the overall borrower experience. The survey suggests that with the right approach, more homebuyers could soon take advantage of these modern solutions, making the often-complicated mortgage process simpler and more secure. MORTGAGE MACHINE SERVICES ENHANCES AI-POWERED DOCUMENT MANAGEMENT SYSTEM M ortgage Machine Services has announced the launch of Auto Split, an enhancement to the Click n' File document management system embedded into the Mortgage Machine loan origination system (LOS). Specifically designed to extract and store loan documents, Auto Split enables lending staff to improve loan processing efficiency, enabling mortgage lenders to optimize speed to close. "With the introduction of Auto Split, we're taking a significant step forward in streamlining loan processing for our cli- ents," said Jeff Bode, Founder and CEO of Mortgage Machine Services. "This en- hancement reflects our commitment to innovation, ensuring that mortgage lend- ers can operate with greater efficiency and precision. By automating document management within the Mortgage Ma- chine LOS, we're empowering our clients to reduce processing times and improve overall productivity, ultimately helping them achieve faster closings." Using artificial intelligence (AI), Auto Split seamlessly dissects large PDF loan files uploaded to Mortgage Machine into their individual components, automat- ically classifying each extracted docu- ment. From there, Click n' File identifies, categorizes, and indexes the information from these documents to sort them into the appropriate folders. "Our goal with Auto Split is to empower lenders by reducing the time and effort required for document man- agement," said Dan McGrew, Director of Sales at Mortgage Machine. "By leveraging AI to automate the extraction, classification, and organization of loan