More than ever, lenders are introducing and touting new technology and client interfaces as huge breakthroughs and the solutions to all mortgage problems. One of our competitors recently spent $80 million on new technology, leaving us to wonder … how? and on what?
We too are on the technology bandwagon and are in fact getting a demo today by the industry’s largest software vendor. BUT – we know that technology is not a panacea.
Mortgages and especially purchases are far too complex still to be handled with software. There are simply too many variables.
This was driven home to us yesterday b/c we are completely revamping our massive training program. We have entire modules devoted to topics that require highly skilled question asking and analysis. Machines can’t ask the right questions and borrowers can’t begin to provide the right info, no matter how frictionless the client interface is.
Complex topics include: Alimony, Child Support, Schedule C and E Income, K-1 Income, S-Corp and C-Corp Ownership and Income, Retirement Assets and %’s Allowed, Gifts, Special Loan Programs, Spotting and Resolving Issues on Purchase Contracts, Reading Inspection Reports, Appraisal Guidelines, etc.
Until mortgages change to a world of pure algorithms, software will never replace highly trained people.
This is the risk for borrowers when they use a lender solely b/c its interface is “smooth.” Their lender will say they are “pre-approved” when they most definitely aren’t.
How do we know this? We get transactions all the time after they blow up at a lender with cool tech and little else. Lenders need cool tech and smart people.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167