BLOG VIEW: As 2017 ends and we look to the fresh start of a new year, it is important to think about all of the things that can and should be improved in 2018. Of course, this list can get quite extensive, so let’s focus on mortgage industry processes that are due for an upgrade; specifically, property reports.
It is no secret that lenders, like all of us in the digital age, want immediate results. They want property information delivered to them instantly in order to get money into the borrower’s hands as fast as possible. In turn, the borrower wants to know immediately when they’re approved, when they can close and when they will be receiving their money.
There is a direct correlation between the time it takes the borrower to receive their money and the chances the lender has to close the loan. For instance, the longer the money is sitting without being delivered to the borrower, the higher the probability that the borrower will choose to go to another lender.
The goal for the entire industry this year must be to shorten the turn time in fulfilling that loan. And, in order to do that, lenders must employ instant property report technology.
In this sense, an instant property report refers to a method of using instantaneous data to determine key information that lenders need in order to make a loan. By utilizing this innovative technology, lenders have the competitive edge that the industry is asking for: speed.
Traditionally, the lender was expected to consider the following information surrounding the property before making a loan: value, flood-zone status, owner(s) and whether or not there was any current interest on it. They would usually pay a professional, in some cases several, to complete research on each property, including appraisal of the property, reading county records and obtaining deed history. This obviously requires a considerable amount of money and typically takes seven to 10 business days.
Instead, this year lenders should resolve to implement software that takes care of this entire process for them and provides all the information they need through one source.
An instant property report provides property value, ownership information, liens, tax status, judgements and more in real time. It instantly collects data from various sources and provides the information to the lender in a comprehensive package. The lender is able to receive everything they need instantly, which allows them to get the money to the borrower much faster.
Utilizing software that provides instant property reporting ensures that lenders remain competitive, satisfy their borrowers and save valuable time, money and resources. It should be on every lender’s list of resolutions for 2018.
Jorge Ponce is director of business development at Austin, Texas-based FirstClose, a provider of end-to-end technology solutions to mortgage lenders nationwide.