Lenders have long struggled with the challenges of hiring, training, retaining, and paying top notch loan originators.
The LO’s share of what the lender’s loan profit has been increasing and for many lenders this expense has become a little out of hand.
The lender takes on all the risk and expense while the LO makes most of the money. On the other hand, without the LO, there is no business. Where does it all end?
According to 360 Mortgage Group, it ends with NOLO. Not too difficult to figure what that stands for, is it?
Mortgage 360 has introduced the “Loan Originator-less” mortgage transaction. A complete online mortgage application and approval process, without the need for the traditional LO. How long before they add in a digital closing?
Consumers who apply online with 360 can still speak with one of their loan advisors. But, they probably make a lot less money than the traditional LO. Maybe LO’s will be replaced by LA’s.
Mortgage 360 says with their new technology they can close loans in as little as 8 days. That sounds nice. But, how many loans need to, want to, or can close that quickly.
In most cases, other requirements like title and inspections will take some time. Some of that time is being eliminated with the agencies waiver of the need for an appraisal.
Are consumers ready for this type transaction? Will everyone be comfortable? Probably not. Especially the LO’s! But, it’s a start.
It provides 360 Mortgage with the chance to originate and close their loans more quickly and with less expense. Some of that savings can be passed on to the consumers to attract more business. The rest may be going to income. That ain’t all that bad.
Some don’t count out the LO’s just yet. Maybe, they’ll stick around for a while… but, for how long?
Mortgage 360 says NO to the LO.