Mortgage Automation: Friend or Foe?

As we all know, the digital era is upon us. What that means is that everyday tasks and regular activities are being automated and completed online. Almost everything is available in a digital form, and this same idea exists in the mortgage industry today. For example, the traditional 1003 application is available in an easy to use, efficient application which is fully automated online. It is completed within minutes, and ultimately saves the lender in origination and closing costs. This is a great concept that will certainly help the lender excel, however it seems that loan officers fear this advancement in technology. The current discussion that some individuals are having is where the loan officer stands in this process. Many loan officers are concerned that mortgage automation will make their position become obsolete, and they fear that they'll find themselves unemployed. We predict quite the contrary: Loan officers will still be crucial in the lending process, but in different ways from what they’re used to.

What’s next?
Once the mortgage industry becomes fully automated online, loan officers will be responsible for building relationships with the borrower and helping them with any questions they may have. Rather than gathering documents for the borrower and calling realtors, they will be more focused on building a relationship with the potential homebuyers. It will be their responsibility to answer any and all questions that the borrower may have, acting as their mortgage expert. They will be viewed as more of a trusted advisor, if you will. Automation will get them back on to more important, crucial tasks, and away from trivial ones that seem to have taken over. Digital point-of-sale applications will eliminate many of the tedious tasks that are unnecessary for them to be wasting their time on. Loan officers are worth much more than what they’ve been sucked into, and the digital world is here to help them, not eliminate their positions.

Benefits to look for
As previously mentioned, mortgage automation is here to benefit loan officers. Making their jobs more productive and efficient; there is no intent to eliminate them from the mortgage industry. Not only will digital technology be able to relieve them from much of their everyday workload, but it will help them get back to advocating for the homebuyer. In a sense, loan officers will be the face behind the brand. They will be the communicator between the lender and borrower, ensuring that there is a good relationship set in place. They will have to be there to provide answers to questions, represent the company, and ease the worries that many buyers face. Potential homebuyers want to feel like they matter when they’re making a life changing decision such as purchasing a home. A computer, or even a digital 1003 application doesn’t have the ability to do this. The loan officer has to be present to ensure that the buyer is receiving the treatment and recognition that they deserve. Whether they have live chats to personally engage, communicate through loan portals, or even text one another, loan officers are still very much needed in the mortgage industry. There’s nothing more welcoming than a friendly face that will assist in any way they can to close a loan.

Between the loan officer and mortgage automation combination, there has never been a more thriving duo. The loan officer position is very critical even with today’s technology, and will continue to exist in years to come. While their duties may be altered a bit, there is no doubt that both the lender and borrower would benefit from their services. Mortgage automation is certainly the friend, not foe, of an LO.

Curt Tegeler is the CEO and president at WebMax and is responsible for providing direction for action to all employees and business initiatives. Tegeler’s main responsibilities include communicating and implementing the company’s vision and mission; leading, guiding, directing, and evaluating the work of executive leaders; formulating and implementing the strategic plan; forming, staffing, guiding, leading and managing WebMax; evaluating organizational success; and represents WebMax in civic and professional activities.