In our previous blog post, we revealed our second of three predictions of the trends within the mortgage origination industry that will gain momentum in 2021. It’s no secret that COVID-19 put many unexpected demands on businesses across all industries — and mortgage lending is no exception. In fact, with record low interest rates, and the growing demand among consumers for more affordable housing in areas outside of urban centers, mortgage lenders, processors, and underwriters have had to become much more nimble and efficient. This is driving adoption of digital technologies to streamline various aspects of the overall process. But we’ve only seen the tip of the iceberg in terms of what digital technologies can deliver, and the new capabilities banks and lending companies can offer to create a smoother process for everyone involved. 

Our first prediction is related to the real estate market correction and new market creation we believe will occur in the coming months, and our second prediction is about the growing demands on brokers and lenders due to low interest rates, the increased home sales, and refinancing activity. Today, we reveal our third and final prediction below. 

Growing Need for a Remotely Supported Digital Mortgage Processing Experience

The scenarios described in our previous two blog posts make it clear that transaction efficiency in mortgage lending is critical. RealKey provides the tools to close more deals, faster, and with less effort. Whether due to limited contact brought on by COVID, or the ongoing shift to working remotely, in-person transactions will be made obsolete, and the need for digital loan processing and communications will be critical. With these trends in mind, the communication between parties, exchange of information, and review of documents and data all need to happen in a centralized online place that is accessible by everyone involved. 

Digital transformation in mortgage lending is not just about improving efficiencies. It’s also about the consumer experience — taking the pain and hassle out of the process, as well as meeting customers where they are. The RealKey platform uniquely addresses the needs for a remotely supported digital loan processing experience for all parties involved in each home purchase or refinance through automation of documentation collection and review, as well as a centralized chat that streamlines communication. 

First, RealKey’s powerful Rules Engine triggers conditions and document needs based on the submitted information, and automatically invites appropriate collaborators at the right time so there is less time spent going back and forth between the MLO, the homebuyers, and underwriting. This aspect of the platform builds education and transparency in the process, and sets everyone’s expectations from the start to ensure the right documents are received the first time around. It also removes any friction that can result from homebuyers being asked to meet certain conditions or provide additional files and documents to close the loan.

RealKey’s centralized chat feature removes the frustration that comes with MLOs and others involved having to make numerous phone calls, leave multiple voicemail messages, and send texts and emails to track down missing documents or information while attempting to keep everyone in the process up-to-date. 

With the efficiency gains it delivers, RealKey will be the new standard for how loans are processed and closed moving forward — with or without the pandemic.

In our previous blog post, we revealed our first of three predictions of the trends and transformations that we believe will take place within the mortgage origination industry in 2021. Coming out of 2020, a year of unprecedented socioeconomic upheaval brought about by Covid-19, organizations have had to learn to shift gears on the fly and operate in a far more agile manner than ever before. The coming year will be one in which mortgage lenders, originators, and underwriters will be required to deliver digitally-driven experiences and achieve operational excellence in order to compete and survive. To succeed in this new era of digital disruption, companies must be ready and willing to harness new technologies that allow for greater efficiencies and enable differentiation within the home buying and refinancing process.

Our first prediction is related to the real estate market correction and new market creation we believe will occur in the coming months. Today, we reveal our second of three predictions as discussed below. We will post our third and final prediction next week. 

More Demands on Brokers and Lenders Due to Continuing Low Interest Rates, which are Fueling Increased Home Sales and Refinancing Activity

The current housing bubble will continue for at least the next few months, until the economy supports increasing the current artificially low rates that are driving a record number of refinances and new home purchases. The spread of Covid-19 will likely slow down, but the effects the pandemic has already had on our daily lives will continue for some time. Many people will continue to work remotely for the foreseeable future, which has been a driving force for homeowners to move to more affordable housing in the suburbs. With rates continuing to remain at record lows, existing homeowners will increasingly look to refinance their home loans. 

With both of these factors driving mortgage loan demand, MLOs and lenders will continue to face tremendous difficulty in keeping up — yet they will want to process as many loans as possible before rates increase again. As a result, they will need improved efficiencies in processing and closing loans so that they can close more loans with less time and effort.

With these factors as the economic and social backdrop for 2021, RealKey is positioned to play a key role in providing mortgage brokers and lenders with much faster, more efficient ways of handling the huge increase in demand, which helps them maintain a competitive advantage. Processing and underwriting efficiency is critical in these scenarios, and RealKey provides differentiated tools to close more deals, faster, and with less effort, while also reducing ramp-up times for onboarding new hires as needed.