Mortgage loan applications used to take weeks to process back in the day before they could be approved or declined. Although that was a poor situation to be in as a borrower for sure, it was also bad business for the lenders. Speed is of the essence in any business and the lending business is not an exception to that rule. When a bank or a credit company takes too much time to process loan applications, they are indirectly pushing potential customers towards the competition. To better understand that statement, read on.
Importance of Speed in the Lending Business
The lending sector in its early days was not always an extremely competitive industry but that has changed. Ever since the commencement and availability of digital mortgages, the competition among lenders has become so much steeper. If someone needs a fast mortgage, then the lender must reply fast as well to get their business. Stats confirm that fast, streamlined responses to mortgage requests usually yield positive results for both parties. Even if the applicant did not qualify for the loan, the lender must become aware of that fact as soon as possible, inform the applicant, and move on to processing the next application. Mortgage applicants may benefit from working with a mortgage broker to speed up the whole process.
Speed Vs Security?
Being able to successfully process multiple loan applications within a comparatively short span of time is a major advantage, but it must never come at the cost of security. Unfortunately, that is precisely what happens far too often, even today. In their rush to process as many mortgage applications as possible, banks and other lending companies will often end up skipping some of the verification and validation standards that are necessary for processing both online and offline mortgage applications.
While that does allow lenders to respond quickly and positively at a much higher rate, this lapse in verification and security standard practices also leads to several bad loans being approved every year. Countless dollars lent to mortgage parties are either lost completely or partially due to a variety of reasons that range from forgery to bankruptcy. It’s not a paramount issue anymore though because loan processing speed and loan security do not have to be on the opposing end anymore.
FCRA-Compliant Asset Verification Mortgage Reports Present the Ultimate Solution
Thanks to electronic asset verification technology, it is possible for lenders to maintain a much safer, more efficient, and thoroughly secure digital mortgage market today that’s favorable towards both themselves and genuine borrowers. For example, Yodlee’s FCRA-Compliant asset verification mortgage reports help lenders process, verify, validate, and respond to mortgage applications quickly and confidently. Their electronic asset verification process pulls in the applicant’s financial data from all relevant financial organizations in real-time, which is then used to generate the only comprehensive document that the lender would need to approve/disapprove/modify the mortgage request.
Digital mortgage applications are supposed to be a streamlined experience for all parties. Therefore, the fact that a single financial report can eliminate the inconvenience of having to submit and process multiple, different financial documents and associated paperwork is a major advantage for both parties.