The mortgage industry is as competitive as ever. The good news is that for the last few months, lenders have been processing some consistently high volumes. Having said that, the real winners are the technology-enabled lenders who are leveraging technology to get the most from the applications that they are processing.
The non-tech-enabled lenders that sourced and spent significant time engaging the potential borrower are experiencing lower pull-through rates and are left with no revenue to offset the cost of lead generation and loan prequalification. Borrowers are being enticed to move to the new technology-enabled lenders for faster processing and overall experience that is delivered through available technology. It’s not uncommon for non-technology enabled lenders to experience pull-through rates (the number of applications that actually close) of less than 35% in a refi market. This represents a large cost to the non-technology enabled lenders as they never realize the income from the closed loan, yet bear all the costs of lead generation, loan prequalification and more.
What can lenders do to improve this pull-through rate?
Improving Pull Through Rates:
What contributes to an improved pull-through rate? We would say an improved borrower experience through a more expedient process that results in minimal hassles for borrowers in the submission of required docs and the overall origination process.
A borrower who can have their loan processed quickly and efficiently will be happy with the overall lending experience and be less likely to be enticed to move to another lender mid-process. This translates into higher conversion and pull-through rates for the lender.
Speeding up Processing
Once the borrower submits documents, the relevant data from these documents need to be extracted and made available in the LOS for the underwriting review of the loan. With most lenders, this process tends to be manual or semi-manual (leveraging help from third-party vendors/BPO service providers) thereby inviting a higher potential for errors typically associated with manual processes. Most lenders would want to make this process fast, efficient error-free and accessible within their LOS. Visionet’s VisiLoanReview (VLR) has a fully functional integration with Encompass®. The integration allows lenders to efficiently and securely share data between VisiLoanReview and Encompass to drive quality and efficiency in the loan origination process.
VLR – Encompass integration – Let’s walk through some of the benefits:
VisiLoanReview can directly access the borrower loan documents within Encompass. The documents can be indexed, stacked and relevant data from these documents can be extracted for further processing in less than 4 hours right within Encompass. The entire process is automated and seamless, ensuring error-free operations. You no longer need to do unnecessary follow-ups with your BPO partners.
With the VisiLoanReview – Encompass integration, lenders can now process a large volume of loan documents with a high degree of accuracy and precision. They can enjoy the benefits of faster loan disbursals, improved pull-through rates, and over 30% savings due to reduced document processing costs.
Increased efficiency, reduced cycle time, higher quality loan production and immediate ROI, all in one solution without the need to change LOS systems. Would you like to see a demo of VLR and how you can experience its benefits? – Write to us
John is a seasoned Mortgage professional with more than 35 years of experience in the Financial Services and Mortgage banking industry, with his experience spanning across all sectors of operations, production, consulting, process optimization, project management, product development, underwriting, loan fulfillment, sales, and marketing. He is a visionary with an entrepreneurial spirit, a deep understanding of critical business drivers in multiple markets, and a track record of continuous success. As a strategic thinker and planner, he is highly successful in building relationships with upper-level decision makers, seizing control of critical problem areas, and delivering on customer commitments. He is also a featured industry speaker and is regularly cited and published in industry publications.