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Most believe that the mortgage originator will always be a required component due to the complexities of a mortgage loan process. (Originators)
Although technology can help to acquire and process information, many consumers still want someone available to walk them through the process, available, when needed, to answer questions and provide guidance.
Many believe, for this reason alone, the originator will be an integral part of the process for quite a while. Do you agree?
I believe that, for now, we have yet to come up with the technology that can provide answers to many of the questions and concerns raised by a consumer when financing a home. But, it’s just a matter of time.
This is more than numbers; it’s an emotional decision that requires some planning and analysis. As most consumers do not have the experience or expertise in home financing, they want someone they can trust to help guide them along the path. This could be the originator.
The question is what does the mortgage originator of tomorrow look like? With the new digital generation of homebuyers, will lenders still need field salesman to acquire loans and service applicants? Borrowers of tomorrow want easy online access to information about products and services so they can shop with the ability to make applications on their timetable. This diminishes the need and effects of the current field loan originator.
With the rise in social media and online outlets, more and more lenders are going directly to the consumer to obtain business. For now, this is supplementing their traditional loan origination process of calling on Realtors and builders to obtain business.
However, more and more traditional originators are also depending upon consumer direct business, obtained through referrals and online solicitations.
Times are changing. In the digital world, the consumer is driving more of the business.
For now, the loan originator of today may not be replaced by technology. However, their role may change. Lenders may look more toward in-house sales associates or loan consultants, made available to applicants through online chats, direct phone calls or email contact.
With the increased costs of technology to drive better loan quality and compliance, lenders need to find ways to reduce other expenses to stay competitive. Today’s loan originator’s compensation is one of the single largest expenses a lender has when originating a loan. Odds are this is where they will look to make some cuts.
Most loan originators believe that won’t work as they cannot be replaced. They are too important to the loan process. Maybe; but many in other industries have felt the same way.
The game had changed. Play different.
