NATIONWIDE COMMERCIAL MORTGAGE BROKERAGE
FAQ
HOW FINTECH LENDING IMPROVES THE CUSTOMER JOURNEY FOR BANKS & CUSTOMERS:
Step 1: Loan Origination
The loan origination process should provide convenience, capture all the required information digitally, and set the foundation for a completely digital lending customer journey.
Capabilities
- Digital loan applications
- Digital document capture.
Bank Benefits
- Acquire loan opportunities from consumers already accustomed to a digital commerce experience.
- Eliminate delays and costs associated with paper documents.Support a completely digital loan origination process with rapid application review and decisioning.
Customer Benefits
- Convenience of anytime, anywhere applications.
- Simplify the origination process.
Step 2: Loan Decisioning
With all applicant information captured in a digital format, extensive automation and pre-integrated cloud-based information sources allow banks to rapidly respond to loan requests based on a more accurate assessment of an applicant’s financial strength.
Capabilities
- Workflows, decision rules, and auto structuring
- Fraud analytics
- Alternative credit data
- Trended credit data
Bank Benefits
- Eliminate manual tasks that delay decisioning.Increase the chances of capturing opportunities through rapid response times. Maintain compliance by consistently applying credit policies and decisioning criteria.
- Identify applications that use false information to increase the chances of obtaining credit.Spot applications with a high probability of defaulting.
- Provide a more accurate assessment of a consumer’s financial standing.Capture more lending opportunities from consumers with no or thin credit history.
- Use recent credit card payment trends to more accurately calculate lending risk.
Customer Benefits
- Rapid approvals (often in a matter of seconds) for applicants with good credit.Competitive credit terms based on an accurate and current assessment of an applicant’s financial standing.
- Indirectly benefits customers by reducing fraudulent applications that lead to defaults and increased lending costs.
- Applicants with limited credit history have an improved chance of obtaining financing.Loan terms more accurately reflect the borrower’s creditworthiness.
- Applicants who demonstrate an improving ability to make monthly payments deserve more competitive terms.
Step 3: Loan Acceptance
The efficiency of the digital lending customer journey shouldn’t be interrupted by paper processes that delay decisions and add to the lending process’ expenses.
Capabilities
E-contracts and E-signatures
Bank Benefits
Respond to offers without paper or postal delays.Maintain a completely digital record of the agreement.
Customer Benefits
Accelerates the lending process and allows for the convenient review of terms.
Step 4: Online Servicing
A completely digital loan origination process provides all the information needed to support digital servicing, allowing borrowers to easily access loan information and banks to reduce customer service costs.
Capabilities
Online self-service
Bank Benefits
Reduced service center call volume.Lower customer support costs.Servicing agents focus on inquiries that truly require their expertise.
Customer Benefits
Anytime, anywhere information regarding account status, payment history, and payoff amounts.Set up automatic payments.Make one-time payments.
FAQ: Mortgage Brokerage
The key difference between a ”mortgage brokerage” and a ”mortgage company” lies in their roles and how they operate within the mortgage lending process:
Mortgage Brokerage
- A mortgage brokerage is a firm or business that acts as an intermediary between borrowers and mortgage lenders. The brokerage employs mortgage brokers who work with borrowers to help them secure mortgage loans from various lenders. The primary function of a mortgage brokerage is to find and arrange suitable mortgage products for clients based on their financial situation, creditworthiness, and specific needs.
- Role: They act as a middleman between borrowers and mortgage lenders, shopping around to offer a variety of loan options from different lenders. Mortgage brokerage’s do not lend money directly.
- Services: They gather necessary financial information from the borrower, compare loan options, and assist with the loan application process.
- Compensation: Brokerage’s typically earn a commission, which is either paid by the borrower or the lender, often based on a percentage of the loan amount.
Mortgage Company
- A mortgage company, also known as a direct lender, is a financial institution that provides loans directly to borrowers to purchase or refinance properties.
- Role: The company provides the funds for the loan and handles the underwriting, approval, and funding process. Mortgage companies can be banks, credit unions, or specialized lending institutions.
- Services: Mortgage companies offer loan products directly and are responsible for originating, underwriting, and sometimes servicing the mortgage over its term.
- Compensation: Mortgage companies make money through the interest paid on the loan and often charge origination fees.
Key Differences
- Loan Options: Mortgage brokerage offer a wider range of loan options from multiple lenders, while mortgage companies offer loan products from their own portfolio.
- Who Provides the Loan: Brokerage’s connect borrowers to lenders; mortgage companies are the lenders themselves.
- Flexibility: Brokerage’s have more flexibility to shop around for better rates and terms, while mortgage companies may have stricter loan products and guidelines.
In summary, a “mortgage brokerages” works to find the best mortgage deal for a borrower from various lenders, while a ”mortgage company” lends the money directly to the borrower.