In the last installment in this series, I talked about a homebuyer’s experience in the pre-approval and contract stage in the mortgage process. There were many problems including redundancy, weak communication, failure to utilize technology and security risks. The entities involved in the home buying process do their best to make it efficient and secure—unfortunately, the process just doesn’t lend itself to efficiency or security. It is much like a soccer team that fails to pass the ball.
How Could This Process Change to Empower Mortgage Industry Participants?
1) Living Mortgage Documents
One of the frustrations that Josh Smith, the buyer I interviewed, had was that several of the groups like the realtor, loan officer and lender gave him several of the same documents to fill out. There were also times when he had to fill out these documents more than once for the same entity because of a hiccup in the system. If everyone were working off of the same set of documents in a vault database online, this redundancy wouldn’t occur. It would also eliminate inconsistencies in the paperwork and the security risks Josh experienced.
The existing process encouraged Josh to email personal information through unencrypted email. Living documents in a secure vault would protect this vulnerable data and ensure it never be transferred in the body of an email in the first place.
2) Mortgage Alerts
There were many times when Josh didn’t know where he was in the process. He said, “There weren’t days or steps or timelines, it was just sit by your phone and wait.” In soccer, knowing where a teammate is on the field can be the difference between completing a pass or not.
3) Virtual Mortgage Loan Process
There were many instances where Josh needed to drive to various locations, taking an entire day to do so. When asked what would be a better process, Josh answered that simply using mobile devices would have saved countless wasted hours.
In soccer, the teams that do the best are the teams that pass and let the ball do the work. It’s the same thing in the home buying process. There’s no reason to travel all over the city to sign different forms when it can be done digitally—letting the online vault do the work.
“There are opportunities for the entire process to be more efficient and secure,” Josh said. “Once a form’s filled out, it could be archived and used by anyone that needs it.”
ATS Secured believes in empowering the mortgage industry with technological advances so they can start passing the ball in a safe and efficient way. We want to protect lenders and settlement agents while providing buyers with the efficiencies, communication and transparency they are looking for.
“Pass the ball over here—I’m open!”
Stay tuned for the next post in this series: “Mortgage Series Part Three: the Need for a Streamlined Mortgage Process”