Will Mortgages Get Less Like Going To The Dentist In 2019?
For too long now, getting a mortgage is like going to the dentist. You have to do it, but you’d really rather not. Tech is changing that, and lender adoption of this tech ranges from head-in-the-sand to just-join-the-tech-company.
The head-in-the-sand camp believes that good old fashioned customer service will win you over. The just-join-the-tech-company camp sees how fast tech can lower your mortgage rates and fees while also making your process less dentist-like, so they hope a mortgage disruptor will just buy their company.
Only a few select deals like this can/will happen. The rest will be the tech-led disruptor segment of the lending industry slowly merging with the customer service-led traditional segment (which by the way still has the vast majority of the $1.6 trillion in funded loan market share per year). Both tech and service — or digital and local as it’s called inside the industry — matter when it comes to buying and financing your home, so you need a lender that has both.
The good news is that, in addition to the tech-led disruptors and the service-led traditionalists, there is a third segment of the mortgage world: the software companies under the hood powering both disruptor and traditional models. These software companies enable the traditionalists to add a tech-forward experience to the already-strong service and advice they give you. So if you can get the smart, experienced advice AND your home buying/financing process feels more like swiping your phone than having your teeth drilled, then you win big.
Last week Mortgage Coach CEO Dave Savage and I dove into exactly we are in this journey during a webinar we did with our friends at Blend (one of those software companies powering the mortgage process for about 25% of the mortgage market).
Good weekend listening to understand how your home loan will work in the new year. And for you lenders out there, this one is a must-listen so you can de-dentist-ify your process.