Is your business on track and future-proofed? Did you know that, in a study of 1,311 firms across the globe, only 22% of those businesses were found to be future-ready? That means...
Is your business on track and future-proofed?
Did you know that, in a study of 1,311 firms across the globe, only 22% of those businesses were found to be future-ready? That means that less than one-fourth of organizations have the capacity to leverage tech in innovating, engaging, and best serving their clients, all while cutting down costs.
One sure-fire way to ensure you and your business are on track and prepared for the future? Researching emerging trends, applying them to your role, and continuously adapting.
That’s why we’ve compiled some of the top trends to watch as the world of mortgage processing evolves. So, are you ready for a glimpse into the future?
From an increase in Gen Z clients to the impact of AI, here’s what mortgage professionals just like you need to know:
Gen Z is Hungry for Home Loans
That’s right, the future of real estate increasingly lies in the hands of Generation Z!
This generation, born between 1997 and 2012, is quickly approaching peak homebuying age, with more than 27% already owning a home and nearly 75% of the rest planning to purchase in the next six years.
But this generation doesn’t respond quite like their predecessors. The same marketing pitches and sales calls you’re used to probably won’t work quite as well as we head into the future. In other words, you might need to tailor your approach to lock down a deal with one of these young, up-and-coming homebuyers in the years to come.
For example, Gen Z is one of the first digitally native generations, meaning they don’t remember a time pre-smartphone, so you might have more luck with social media. They’re also known to be value-oriented and cause-driven, so your mission and vision need to be crystal clear.
Whatever approach you choose to adopt, this generation will certainly be one for mortgage pros to watch.
Speed Will be More Important Than Ever
It’s not just Gen Z whose preferences are changing, though. Borrowers across the board are prioritizing speed and efficiency more than ever. In fact, this year, speed was one of the top three concerns among borrowers!
This is where systems, processes, and investing in technology all come into play—especially as we look to the future.
Borrowers may increasingly expect advancements in mortgage tech areas like user experience, communication channels, and 24/7 portal access. Anything that can simplify the process, boost speed, and get the client to close that much more efficiently will likely be in high demand.
If you haven’t already, you might want to do some research on technologically advanced mortgage loan processing services that can help streamline the transaction. Then, just imagine your future self breezing through loan after loan.
Expect an Emphasis on Borrower Education
Service providers are increasingly expected to provide more value, impart more knowledge, and ultimately go above and beyond. For mortgage professionals, the clear answer here is championing borrower education.
Remember, in the US, the measure for financial literacy has fallen a disappointing 19% over the course of the last decade. This means that teaching your borrowers a thing or two could quite literally change their lives.
From explaining private mortgage insurance in-depth to fielding questions about underwriting, you both show that you care and provide value when you take on the role of an educator. You also differentiate yourself from the competition, who might not-so-subtly seek to just get their clients in and out.
And the future payoff? Not only will your clients be better off, but you might just see some repeat or referral business as a “thank you!”
AI is Becoming Increasingly Involved
Of course, no conversation about the future would be complete without a little coverage of generative artificial intelligence (AI).
Modern AI tools have the potential to help improve speed, efficiency, and output for mortgage businesses. And, in fact, some of the larger lenders are already working on adoption. That means that, in the coming years, AI could quickly become commonplace in the mortgage world.
The key here is that the applications of AI are still unfolding, and the potential is near-unlimited. It’s hard to predict what exactly this will look like—today, note-takers, chatbots, and document-processing tools represent only square one.
This means that mortgage pros like yourself will need to keep an eye on any advancements in AI, specifically as they might relate to the industry. You might want to start dipping your toes in now, too, whether that’s consulting ChatGPT for marketing ideas or investing in a website chatbot.
Final Thoughts: The Future of Mortgage Processing
The future is (almost) now! From Gen Z entering the real estate market to generative AI disrupting the mortgage tech world, there’s so much for business owners like you to get excited about.
And don’t worry. As the future unfolds, we’ll be here to help you every step of the way.
Ready to have the latest mortgage insights conveniently delivered to your email inbox? Sign up for the wemlo newsletter.
