When it comes to mortgage lending and consumer satisfaction, the lenders that receive the most satisfactory ratings are those whose services are efficient and accurate. They are the companies that have embraced streamlined processes, reduced redundancies, and eliminated chances of error. Because of technological advances, these companies have partnered with tech driven signing services, title companies, and other vendors to streamline closings. Now, new solutions to automate loan approvals, underwriting, marketing, will help them increase CFPB compliance even further.
Mortgage borrower fraud is a common problem for lenders and is one that reportedly costs them $2.6 billion per year. Approximately 20% of scammers execute this kind of fraud by supplying misinformation about their income and assets, frequently by providing falsified bank statements showing their income.
Using paper bank statements as verification for a potential borrower’s financial situation is often a time-consuming process. It can take days, even weeks, to collect a borrower’s information and then review it. Reviewing bank statements is also an incomplete way to obtain a picture of a potential borrower’s financial situation.
Automation eliminates both aforementioned issues. Electronically, it takes only minutes to compile data from several financial institutions. All assets and income are obtained quickly and without opportunity for the borrower to manipulate their documents.
Mortgage lenders have always been responsible for ensuring that their borrowers have the ability to pay their mortgages—but CFPB compliance rules have now made that responsibility more important than ever. The CFPB has doubled enforcement penalties against lenders, and 2020 will likely see similar enforcement actions. Automation tools allow a lender to pull and analyze data from many different sources. With better information at hand, mortgage lenders can make better decisions about borrower viability and increase CFPB compliance.
Besides CFPB compliance and avoiding fines, automation tools will allow mortgage lenders to process more customers’ loans more efficiently. A paper process puts the responsibility on consumers to collect their bank statements, tax returns, and other relevant information to the lender. What customer would prefer to do that work themselves when they could instead choose a lender that can automatically pull that information? Close to none. Technological solutions are setting the standard in the mortgage industry—make sure your company doesn’t get left behind!
For a seemless, convenient and efficient signing of any kind, call BNN services today!