Are mortgage lenders ready for a total makeover?
The time has come to transform how business gets done
Until now, we’ve discussed change at a minor level. While greater responsiveness and a more seamless process are important steps to undertaking a transformative experience, they are just the beginning. If the industry truly experienced a real makeover, what could the future of mortgage lending look like 10 years from now?
To consider such a scenario, imagine what your daily life could look like. With the technological advancements taking place, what if electricity could be delivered wirelessly? What if computers became disposable, to be recycled like aluminum cans? What if internet access was free, much like broadcast TV was years ago?
Whether any of these ideas become a reality remains to be seen. However, change of this magnitude would require mortgage lenders to transform how they view change — from a process that is reactionary to one that embraces what is possible. What if the industry could open up to consider the possibilities, and not the boundaries, of change?
Author David Levithan in his book The Realm of Possibility states: “Here’s what I know about the realm of possibility — it’s always expanding, it is never what you think it is . . . Most of the limits are of our own world’s devising. And yet, every day we each do so many things that were once impossible to us.”
What are the things considered impossible today that housing finance will take for granted 40-50 years from now? The sheer volume of information that is available and accessible is changing rapidly. As a result, the expectations mortgage borrowers have is being influenced by experiences in other parts of their lives. What if the function of mortgage origination or servicing, as we know them today, looked completely different? What would it look like?
Is it possible that borrowers would no longer send lenders their financial information? Let’s imagine that all the information resided in the cloud and borrowers granted permission to mortgage companies to examine the data to make an offer. As borrowers demand greater transparency and control of the process, it’s conceivable this is the direction we are headed toward. One firm is already building a model to make this possibility into a reality.