Selecting the right mortgage technology can be a powerful differentiator in any market cycle. By implementing a robust point of sale, lenders can reduce costs, increase efficiencies, and build a superior borrower experience. Together, these benefits drive a real, measurable impact to the bottom line.
During times of reduced volume, it might feel counterintuitive to invest in technology. In an attempt to bolster profitability, some lenders slash costs at every opportunity, opting for a “free” mortgage point of sale (or no point of sale at all). This decision, however, can be costly both in the short and long term.
The truth is, well designed, efficiency-driving point-of-sale technology can actively save your lending business money by streamlining your process, empowering your team, and driving down your loan production costs. Here’s how.
The goal of integrating technology into your mortgage process is to help your team achieve more, faster, with less work. Automating tasks such as document collection, tracking loan file status, and sharing pricing scenarios saves lending teams time and eliminates small inefficiencies that quickly add up. By automating these tasks, loan officers can focus on bringing in borrowers and shortening the time to close, leading to better customer satisfaction.
Maxwell Point of Sale, for instance, drives a 17% faster turn time from application submitted to conditional approval on a loan. By saving time on each loan, LOs are empowered to focus on high-ROI tasks, including growing their pipelines. Plus, a streamlined lending process means fewer bottlenecks and touchpoints, delivering savings in the form of reduced leakage.
A better borrower experience
The mortgage process is already confusing for borrowers. Why make it harder with an outdated digital or paper application experience? Today, borrowers expect a convenient, mobile-friendly process with little friction. In fact, lenders see customer satisfaction drop by around 15 percentage points if they take 10 or more days to provide a decision on the application. That makes a simplified process vital for lenders to drive home buyer business: By streamlining the experience with a POS, lenders see higher application completion, better pull-through rates, and a stronger borrower pipeline.
The Maxwell loan application meets modern borrower needs with an intuitive interface that automates away tedious tasks, driving a 90%+ completion rate. Plus, Maxwell Point of Sale provides customized functionalities that help a wide range of home buyers through the process. A fully translated Spanish-language loan application, for instance, allows Hispanic borrowers to toggle between Spanish and English, while mobile-first functionality offers convenience regardless of device.
Features like these allow lenders to capture available loan volume no matter the market cycle by facilitating connections with rising borrower demographics, such as millennials, Gen Zs, native Spanish speakers, and first-time home buyers. With the share of these borrowers rapidly growing, the need for thoughtful features will only become more crucial. By investing in technology designed for today’s consumers, lenders gain powerful leverage in the race to earn borrower business for years to come.
Functions that empower LO productivity
Top LO talent seeks technology that works for them. Specifically, LOs today look for POS solutions that automate tasks and integrate seamlessly with the LOS—allowing for bilateral, real-time data exchange and the ability to manage information in one place. And since high-functioning LOs transact business both in and away from the office, a mobile application is a vital component of a well-designed POS, allowing for on-the-go connection with borrowers.
Maxwell Point of Sale gives loan officers the power to close more loans, increase referrals, and earn more money by spending less time on operational tasks and more time keeping borrowers satisfied. With features from screenshare, which allows LOs to assist borrowers in real-time, and pricing comparisons to streamlined pre-approvals and branded landing pages, Maxwell POS arms LOs for success. In turn, lenders can recruit and retain top talent while keeping sales funnels healthy.
“From an operations standpoint, Maxwell Point of Sale helps us drive team collaboration and visibility across our entire pipeline. Our LOs can deliver a top-tier mortgage experience by automating and configuring many of their day-to-day workflows,” says Milton Karavites, SVP Mountain States Region at New American Funding.
Technology that pays dividends
For lenders considering new partnerships with tech providers, the decision often comes down to simple math: Will upgraded point-of-sale technology pull its weight in today’s market?
While downcycles often result in scrutinized budgets, it’s vital to remember the importance of a strong point of sale when it comes to boosting efficiency, driving down costs, and earning borrower business. The truth is, a dedicated point-of-sale provider acts as a partner to empower your lending team, helping you find creative ways to capture more volume, close more loans, and improve your profitability. These improvements provide concrete benefits to your bottom line. Compared to a top competitor, for example, Maxwell Point of Sale averages a 5.9% higher pull-through rate from rate-lock to close. That improvement equates to $42MM in additional loan volume for the average customer.
With the cost to manufacture a loan soaring to over $10,000, achieving a streamlined process that thoughtfully leverages technology has never been more crucial. Increasingly, innovative solutions will separate lenders into two camps: those who passively react to market changes and those who arm themselves for volume highs and lows by building peak efficiency into their businesses. As competition heats up and inefficiencies continue to creep, can you afford to be in the former?