Cyclical challenges continue in the mortgage industry, but recent industry research says companies are carefully stepping up their technology investments, particularly in cloud-based solutions and servicing tools.
Although mortgage payment amounts surged 39% in 2022, according to the Mortgage Bankers Association, mortgage delinquency rates are their lowest since the 1990s and foreclosure rates hover near historic lows. Another positive sign: With the recent decline in mortgage rates, Fannie Mae increased its 2023 forecast for sales of existing homes to 4.0 million units. Yet affordability headwinds persist, as 49% of mortgage industry executives cite the lack of qualified homebuyers as the biggest challenge this year, according to new research from Arizent.
Amid the market uncertainty, companies are turning to tech, with a major focus on billing and other financial communications and payments. The aim is to drive cost efficiencies, improve cash flow and boost employee and customer experience.
By replacing error-prone, manual processes with cloud technologies and automated workflows and delivering digital options that consumers want, servicers add value for both borrowers and themselves. “As more consumers expect paperless transactions, the demand for tech services is set to grow,” noted the Arizent report.
Learn about the latest cloud communications and payments technology to enhance CX and operations. We’ll be at MBA’s Servicing Solutions Conference and Expo, Booth #703, at the Hyatt Regency Orlando.
Reduce friction and frustration
Slower than others to respond to changing customer expectations, the mortgage industry is trying to make up for lost time. To meet growing demand for omnichannel options, more mortgage servicers are upgrading to cloud-based customer communications management (CCM) platforms. With CCM technology, lenders and servicers are creating and sending effective, compliant financial communications to borrowers via email and text in addition to print/mail. Integrating digital and self-service account management options, including electronic bill presentment and payment (EBPP), makes doing business with mortgage servicers easier. These tools don’t require heavy IT involvement and deliver convenience and a better overall consumer experience, accelerating cash flow and making back-end processes more efficient for mortgage professionals.
Another advantage of CCM and EBPP solutions: Mortgage lenders and servicers can consolidate the entire billing and payments process with a single vendor and on a single platform. This approach reduces compliance risk, greatly enhances data privacy and cybersecurity and frees up management resources.
Upgrade the customer and employee experience
Omnichannel, customized communications, from statements and disclosures to refinancing offers, are critical elements in the customer journey. J.D. Power research found that 52% of mortgage customers receive a paper statement, but 43% of those customers say their primary means of reviewing their statement is via digital channels — epresentment. Promoting paperless options to customers can help servicers hedge against increasing paper and postage costs. Empowering borrowers to choose how they want to receive information and offering self-service capabilities, including mobile, with 24/7 accessibility boosts customer retention, engagement and trust.
The right CCM approach can help control costs and increase productivity in an uneven market, yet it’s scalable when business rebounds and volume increases.
Contact us to learn more. We’ll be at MBA’s Servicing Solutions Conference and Expo, Booth #703, at the Hyatt Regency Orlando. Schedule a meeting here.