It’s been called the ‘second digital mortgage revolution’ – the transformation of the back office to support a digital front end for mortgage applications.
Rocket Mortgage from Quicken Loans is arguably the poster child for this revolution. An online mortgage with conditional approval in around 10 minutes, it is redefining the mortgage process. Quicken Loans hastens to point out that Rocket Mortgage is more than a front-end – that it is the work behind the scenes, connecting the various automated procedures, that makes it clever.
Automation has of course, been cutting costs and improving efficiencies in businesses for years, but in many industries a lot more can still be done. In fact, McKinsey & Company suggest that 45 percent of activities people currently undertake at work could be automated. Mortgages are a case in point, with brokers spending as much as 90 percent of their time processing applications. If automation cut this down, it could help shorten wait times for the customer.
One look at the average time to closure for mortgages – a hefty 46 days in August according to the Ellie Mae Origination Insight Report – and the need for speed is clear.
Mortgage seekers want efficiency and a high level of service; making such a significant life decision is stress enough. Quicken Loans shows that technology can help speed up the process. Across channels – online and in branch – more automation could streamline the process for customers and free up time for lenders.