This post is a continuation on a series detailing a homebuyer’s experience, specifically in the loan processing and underwriting stages.
Missing Data, Homebuyer Inconvenience
Josh Smith went to the loan officer’s office to sign a stack of 28 forms so the underwriting process could begin. Unfortunately, these forms were missing the property address. Later on, he received an email telling him to sign them all again, even though he had already signed three-fourths of them.
“And because I’m here and they’re there,” Josh said, “my choices were: hopping in my car, driving across town and handing them back in or what I did, which is basically scanning them in using my phone. So taking pictures of each one, converting them into a PDF, going back into the encrypted email and sending them back.”
Providing these documents was not a problem for Josh; however, the manner in which he was asked to provide them was inconsiderate of his time and availability. If he had been given prior notice for the required paperwork, he would have been much less stressed by the experience.
Too Many Variables in the Mortgage Process
Everyone’s experience while buying a home is different, which is part of the problem. Jeff Murnane, ATS Secured’s SXO, says, “The best closing in today’s world will probably still be a long, drawn out process with at least a glitch or two. When you contrast that to the worst one, it looks vastly different. Then in the middle, you’re going to have a whole bunch of different random experiences.”
Investor guidelines and overlays are designed for a broad set of the population, but individuals’ experiences are unique and that is difficult to manage. Situations in peoples’ pasts such as divorce, child support, bad credit ratings and gaps in employment history all contribute towards multitudes of setbacks.
Risk of Mortgage Fraud
This arbitrary process lends itself to opportunities for fraud, security risks and bad customer experience. There has to be a better way to collect, review and sign off without sending borrowers all over town and frustrating them.
What is stopping the mortgage industry from streamlining its process?
There will naturally always be something that causes delays. However, the current mortgage process fosters these problems at an elevated rate.
ATS Secured believes in putting every entity into a digital vault where the appropriate information can all be collected and variance is mitigated. What are other industry experts’ thoughts on this issue?
Stay tuned for the next post in this series, “Hey Mortgage Industry, Pass the Ball! Part Four”