Ellie Mae recently announced that it has acquired Velocify, a cloud-based intelligent sales automation system, so that it can more quickly deliver a true digital mortgage solution to lenders of all sizes.
Digital mortgages are reportedly a high priority for consumers who want faster mortgage application processing. A recent survey by Ellie Mae, for example, showed that borrowers of all generations would like a mortgage experience that is fast, convenient, and secure with personal interaction.
Another recent survey by J.D. Power showed consumer satisfaction with mortgage lenders dropping in 2016, due primarily to the slower processing of online mortgage applications. Satisfaction for online applications declined by 18 points, and for in-person applications, by 10 points, in 2017, but speed of funding mortgages was also slower last year. The mortgage application process took an average of 36 days in 2017, almost a week longer than it did in 2016.
Customers Expect Faster Mortgage Processing
In 2017, for the first time, both refinance and purchase customers reported that “online/website” was the most frequent method for submitting mortgage applications. A whopping 43% of mortgage customers applied for mortgages digitally last year, compared to only 28% in 2016.
However, when they apply for mortgages online, homebuyers may also have a higher expectation that the mortgage process will go faster. “A critical element of satisfaction is setting expectations, and this tends to be a weakness of technology, which is demonstrated by substantially lower satisfaction among customers who do not work with a human to complete their application,” said Craig Martin, Director of the Mortgage Practice at J.D. Power in a press release.
Acquisition to Move Lenders Closer to True Digital Mortgage Solution
Jonathan Corr, Ellie Mae president and CEO, stated: “In the coming months, we will integrate Velocify’s lead management, engagement and distribution capacity with our own CRM and Consumer Connect solutions to help lenders turn consumer interest into applications through a personalized, high-tech and human-touch experience.”
The new expected level of automation should assist lenders in reducing time to origination and also reducing origination costs, according to Ellie Mae. The automation will also provide loan agents with the information they need to keep customers closely updated on loan status, which the recent surveys showed was important to mortgage consumers. And when the new automation is in finally in place, the faster mortgage processing should result in greater customer satisfaction, and thus help lenders to achieve better results.
Champion Title & Settlements
Champion Title is a full-service title insurance agency providing title insurance and closing support to streamline closings and increase compliance for our diverse clientele. Champion Title fully embraces technology and is proud to offer clients myriad tools and services to efficiently and accurately assist them with all of their closing needs. For more information, contact us today!