Taking out a home loan is a big step for anyone. As a credit union, you provide personal, community level service that other financial institutions can’t. You probably want your members’ mortgage lending experience to feel as personal as the rest of your interactions.
Mortgage lending is a big task. And behind-the-scenes stuff like escrow accounts and constantly changing regulations?
Often a total mystery to the borrower! Transparency is an elemental building block of borrower trust.
To truly give borrowers those warm fuzzies about their home buying experience, you have to do more than avoid a bad experience. It goes beyond customer service. It takes a service built around the member.
With the right tech on your side, mortgage servicing gets a whole lot easier. And it can help you curate the warmest, fuzziest, borrower experience.
Integrate Self-Service
The tech age has conditioned people to expect control at their fingertips. They have smart phones that connect them to accounts of all kinds. Google answers every question in seconds or less. But borrower inquiries?
Not so fast. The industry standard for a response turn-around is less than 30 days. And answers often take the full month when servicers are using antiquated technology.
The member has invested hundreds of thousands of dollars in buying their home. They probably don’t want to wait on hold or be transferred around departments when they have a question. And there is always potential for miscommunications during phone interactions, which can be a turn-off.
As a servicer, avoiding those negative experiences is an important part of being borrower-first.
A potential solution?
Introduce self-service options! Some of the perks are:
- The borrower can streamline traditional inquiries or even find their own answers with an intuitive program
- Employees will spend less time digging for inquiry answers
- Self-service eliminates the risk of miscommunication
- The borrower will feel that they have more control over their mortgage experience
The User Experience (UX)
Much like self-servicing option, great UX comes from a member’s quick and clear access to their mortgage information. Providing a platform that gives members that power is especially important now. The COVID-19 crisis has eliminated control over so many decisions.
In response to social distancing, you may have seen a spike in web traffic and mobile engagement like many other credit unions. A greater volume of members are counting access to those alternative channels and their security.
Member-first UX goes beyond simple balance inquiries that can be handled with an SSO or a couple of taps.
More members are needing dealing with loss mitigation. It’s a stressful challenge to face. But forbearance needs to be accompanied by convenience. Reduce some of the stress and effort required on the member’s side. Putting access to the application online or on your mobile app could help. Your members will appreciate knowing if they’ve qualified faster.
Upgrading Your Platform to Be Borrower-First
Your mortgage platform should be able to automatically detect errors. In turn, it provides you the ability to address and fix those errors immediately.
It should improve your UX by providing friction free, transparent, and intuitive technology.
A great mortgage platform will support omnichannel communication—ensuring members have access no matter where they are.
Give borrowers the control they want over their mortgage experience. It’s the member-first way!
The Take-Away
The borrower is a mortgage servicer’s number one priority. Being member-first is about building an experience of ease and efficiency. It goes beyond great customer service and avoiding bad experiences.
Self-service, great UX, and a top-of-the-line platform are the foundations of a member-first mortgage experience!
Much thanks to Valon (formerly Peach Street), who has been providing us with some insight about mortgage servicing.
CU 2.0 Podcast Episode 102 Andrew Wang Peach Street on Mortgage Servicing
Why Digital Trust and Security Are a Credit Union’s Most Valuable Asset
