Millennials are blowing up the housing market, and they’re using digital means to do so.
Now aged 26 to 41, millennials accounted for more than half of all home loan applications last year, according to real estate data analytics firm CoreLogic. They use the internet to find and view homes, shop for mortgages, close the deal and pay. According to the National Association of REALTORS®, almost 70% of the activity happens on mobile devices.
Mortgage lenders and servicers are capitalizing on this trend by providing digital financial communications to consumers using cloud-based customer communications management (CCM) software. CCM systems let mortgage servicers promote paperless choices, manage communication channel preferences, send email and texts and offer self-service options with electronic bill presentment and payments (EBPP) solutions.
In addition to meeting millennials’ preferences for speed and convenience, using CCM technology to capitalize on digital opens up new opportunities for efficiencies and improved customer experiences:
- Add ageless appeal
Digital channels are increasingly popular with all adults. Nearly 50% of consumers want only digital communications versus a combination of paper + digital or paper only.
- Mitigate rising mailing costs
Digital communications with CCM can offset rising costs in the print/mail channel. Despite multiple postal increases last year, First Class Mail rates are scheduled to increase again in July. In 2023, postage rates will increase twice yearly, in January and July. Another challenge for paper-based customer communications: Supply chain disruptions and double-digit paper goods price increases.
- Anticipate ARM customer needs
As the Fed raises interest rates multiple times this year to slow inflation, you’ll want to connect with borrowers who have an adjustable-rate mortgage (ARM). With CCM software, it’s fast and easy to personalize messaging and segment communications so you can push out offers to convert to fixed rates, send out ARM news quickly or present newly required consumer loan disclosures.
- Improve performance even if volume slows
Inflated home prices and creeping interest rates could decrease mortgage loan transactions and refi originations. Yet notices and disclosures still have to go out, and firms continually add or update critical information in loan-related communications. You can improve process workflows and deliver cost savings with a CCM partner that offers an end-to-end solution.
Create digital communication strategies
The majority of American homeowners have mortgages. That triggers a great deal of paper during the closing process and certainly during the loan servicing phase ‒ statements and escrow analysis, disbursement checks and tax forms ‒ it’s a long list.
Seize this opportunity to shift more communications to digital channels. With CCM technology’s omnichannel capabilities, mortgage servicers can create and distribute paper, email and text communications and offer self-service options to consumers, all of which improve engagement and satisfaction. Consolidating consumer communications within a single platform also reduces the complexity of managing multiple vendors and significantly boosts privacy, security and compliance.
Borrowers expect an easy, online financial experience, a great payment portal, quick digital communications, and flexibility and choice in where, when and how they make loan payments.
That’s exactly what they’re getting from firms committed to servicing people, not just their mortgages.