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4 Ways To Scan Loans For Faster Approval


Borrowers have always wanted quick approval. But in a mobile world of advance order delivery, that expectation has been raised to 11. This is especially true among mortgage borrowers. Mortgage lenders and HELOC are feeling the pressure to say “yes” faster than ever.

Speeding up the subscription process can seem like a daunting task. With mandatory wait times and ever-expanding compliance requirements, lenders may be tempted to focus on improving other areas of the applicant’s experience. But, thanks to digital lending technology, accelerating the lending cycle is within reach of even the smallest of co-ops.

Here are four ways credit union lenders can leverage technology to speed up their lending process, improve the overall experience, and dominate their local markets.

Digitize the application process – Members expect you to know them and use their data to add value. As your online and mobile banking strategies evolve, integrate the loan program. Consider adding features like automatic preliminary approval based on certain factors. This will help keep your members engaged and get them excited about your programs.

Streamline your suppliers – The integration of a digital web platform like LenderClose brings together all the providers needed to create a mortgage or HELOC in one place. No need to connect to multiple sites, search for multiple document providers, or reconcile different formats and fields. Your compliance team will also benefit from reduced supplier management effort.

Adopt electronic closures – Faster closing is extremely important to the borrower’s experience. If you have waited because of the risk factor, you may want to review the option. The perceived risk of electronic closures has decreased in recent years, helped by court decisions that paperless mortgages were sufficient in foreclosure proceedings.

Fintech partner – Startups want to work with your credit union. They’re looking for a ladder and, most importantly, progressive credit union lenders willing to help them hone their platforms. Because they are more agile, non-custodial technology companies can tweak, evolve, and improve their solutions to meet the unique needs of your loan team and members.

A positive and timely borrower experience is essential as market pressures increase. In Fannie Mae’s Q1 2018 Mortgage Lender Sentiment Survey, ‘Competition from Other Lenders’ established a new survey for the fifth quarter in a row as the top reason cited for lenders’ lower profit margin outlook . And these “other lenders” go far beyond the financial community down the street or the downtown mega-bank. Scotsman Guide called on the startups and other non-depository lenders that make up the Internet lending craze “major forces of change. ”

The credit union movement is likely to become its own force in the credit ecosystem. Supported by technology that digitizes and accelerates the lending experience, local financial co-operatives will become the preferred lenders for the next generation of borrowers.