There are many misconceptions about millennials and homeownership.
Some attacks have even accused Millennials of wasting their money on avocado toast instead of spending it on buying homes. Seriously.
Well, the older generations couldn’t have been further from the truth. In fact, Millennials make up the largest group of home buyers—and they’re even taking advantage of the low rates and refinancing.
In fact, refinancing accounted for 43% of all loans closed by Millennials in September. [Ellie Mae Millennial Tracker report].
Did you know that there are nearly 80 million potential Millennial homebuyers? So how does this impact the mortgage industry? Greatly. This group is often referred to as the “digital generation” for their tech-savviness. They grew up with advanced technology— so to them, every digital experience should be personalized and convenient. It’s no wonder why they expect every industry, including the mortgage industry, to provide experiences like those of Amazon, Airbnb, and Uber.
It used to be that customer service was the major differentiator amongst lenders. Well, it takes a lot more than that to satisfy today’s average homebuyer looking to refinance, who in addition to great customer service, expects a seamless digital experience that saves them time and money. One of the most painful parts of taking out a mortgage is the amount of paperwork. Collecting the financial information required for loan approval is an onerous task—one that could easily be improved with the use of technology.
Technology In Mortgage
Until recently, the lenders who dominated the mortgage industry ignored the tech disruption experienced by other industries. As the wants, needs, and expectations of borrowers changed, Sovereign Lending Group (SLG) pulled out all the stops in its mission to transform the industry and provide a more cohesive experience for home buyers.
Whilst some borrowers may wish to have a fully digital mortgage process, SLG believes the best approach is to offer a hybrid approach that is a mostly digital process, but with a human touch when wanted—especially near the end, when it comes time to review the terms and conditions of the loan. After all, taking out a mortgage is a very personal experience, and one of the most significant life decisions one can make.
How does SLG’s technology improve the borrower-experience? For starters, it saves them a significant amount of time by:
- Significantly reducing paperwork
- Creating more streamlined and efficient communication
- Improving the speed at which a loan can be processed
- Providing an electronic closing method, simplifying the document review and signing processes
- Enabling borrowers to sign anytime, anywhere with an intuitive e-signature tool
- Providing on-demand self-service tools, such as an online application and paperwork retrieval system
How Did We Pull It Off?
What did SLG do to make this possible? For starters, we hired the right people and invested millions of dollars to build a new loan origination software that integrates with third-party vendors to quickly validate borrower information such as income, assets, employment status, creditworthiness, etc. We also incorporated Robotic Process Automation (RPA), which helps increase productivity and accuracy by replacing the time-consuming and repetitive tasks of yesterday’s loan officers. By using RPA throughout the loan origination process, our technology reduces the occurrence of human errors, which means less back and forth between the loan officer and borrower.
Saving staff time by reducing manual labor allows them to focus on the borrower’s individual needs, providing a more personalized client experience. While some borrowers may prefer a more digital experience, we also make sure that each one has a dedicated loan officer to help every step of the way—especially with the more complex or critical steps of the process.
In addition, we realize that all of the information needed for mortgage loan underwriting exists somewhere as digital data. Why should you have to waste your time trying to find it and gather it when an integrated technology solution can find it for you? It’s true that the mortgage industry used to be complicated, slow, and expensive—but SLG has changed that. Having technology replace and streamline many of the time-consuming and tedious tasks, SLG was able to cut many of the unnecessary expenses found in mortgages.
Sovereign Lending Group
Sovereign Lending Group has transformed the mortgage industry and created a digital experience that is convenient, fast, seamless, personalized, and transparent. The digital ecosystem we built connects loan officers with the data they need and the borrowers needing their help while providing a best-of-breed user-experience AND competitive pricing.
Once an industry with a reputation for being outdated and painful, today’s borrower can now enjoy a seamless mortgage journey—and at a time when demand is at an all-time high. By improving the experience for the “digital generation,” we’ve made it incredibly easy for borrowers to engage with their loan officers. So whether you fill out the application from your computer, upload your documents from your phone, or have a video chat with your loan officer, the lines of communication are always open—however you wish to connect. With Sovereign Lending Group, It has never been easier to take out a mortgage or refinance your home.