Say Hello to Mortgages for Financial Services Cloud
Learning Objectives
After completing this unit, you’ll be able to:
- Describe the business problem solved by Mortgages for Financial Services Cloud.
- List the features and benefits of Mortgages for Financial Services Cloud.
Responding to Digital Disruption
Like many other industries, the mortgage industry is in the throes of digital disruption. Young customers demand exceptional experiences—and they will do business only with those companies that offer them. That means companies like yours need to pivot fast and rethink how they’re connecting with their customers at every touchpoint. They need to make digital investments that enable first-rate customer experiences.
Borrowers find that applying for a mortgage is the most complicated and time-consuming task they experience when engaging with a financial services institution. In fact, it takes an average of 46 days to close on a mortgage, due to data and archaic processes that are fragmented across many different silos and stakeholders. This experience is not acceptable for anyone, let alone younger, digital-first buyers, who make up 37% of the home-buyer market (and growing).
And with the increasing competition from fintech disruptors and independent brokers, mortgage companies are under greater pressure than ever to make the lending experience seamless and borrower-centric.
Fortunately, Mortgages for Financial Services Cloud can help solve these problems.
In this module, you learn more about Mortgages for Financial Services Cloud and how to set them up.
What Mortgages for Financial Services Cloud Can Do
Here are some of the benefits of Mortgages for Financial Services Cloud for all of the key players in the mortgage process.
Guided Residential Loan Application
Guided Residential Loan Application takes borrowers and loan officers on a seamless journey through a 1003-compliant residential loan application form. It guides users through prebuilt, step-by-step actions and recommendations to capture relevant data. Traditionally, loan officers have to manually upload data and documentation about borrowers throughout the loan process. This is error-prone and leaves room for critical documentation to be overlooked, creating a lengthier approval process for borrowers. With Mortgages for Financial Services Cloud, applications are smoother for all parties, loans close quicker, and borrowers get the keys to their dream homes even faster.
Document Tracking and Approvals
Document Tracking and Approvals provides simplified document collection with templatized checklists and automated approval management. For example, loan officers and borrowers can collaborate by following the checklist and ensuring no document or task falls through the cracks. If a document such as a W-2 is missing, a borrower can easily upload these files through a secure portal. Structured document tracking and approvals allow loan officers to pivot the focus from moving paperwork around to helping her clients move into their dream homes.
Mortgage Data Model
Mortgage Data Model delivers comprehensive prebuilt mortgage objects that make it easier to capture information such as a borrower’s address, income, and employment, enabling loan officers to view these details in context with a borrower’s household relationships, goals, and other financial accounts. Given that borrowers are required to provide more information during the mortgage process than at any other touchpoint, capturing this data also creates opportunities for companies to use Financial Services Cloud to generate needs-based referrals to other lines of business at their institutions. With these pre-built objects for data capture, loan officers are able to ensure consistency and streamline the overall mortgage application process in one place.
Meet Cumulus Mortgages
Let’s see how these benefits help an example loan officer and their company.
Sofia Lopez, a mortgage loan officer at Cumulus Mortgages—a large, well-diversified provider of mortgage services nationwide—assists prospective borrowers, both consumers and business people, in choosing and applying for suitable loan products. For borrowers like Richard Bennett, she’s the main point of contact with the bank through the loan closing process.
Most loans require a ton of paperwork, and mortgages are no different. But Sofia’s superpower is to make it all look effortless to borrowers like Richard so they can focus on what’s important: getting that mortgage at the best interest rate and with the least amount of friction. Sofia guides clients like Richard through the mortgage application process.
Meanwhile, mortgage underwriters like Shah Jahan help the Cumulus lending process run like a well-oiled machine in the background. Shah determines if Richard does in fact qualify for a mortgage. To do this, Shah uses the three C’s of mortgage underwriting:
- Credit reputation and behavior over time
- Capacity to repay the loan
- Collateral, or the value of the underlying asset the borrower is purchasing
Shah is meticulous, and at the end of the three-C’s process, he makes a determination to approve, suspend, or decline Richard’s application file.
Sofia learns that Mortgages for Financial Services Cloud can simplify and accelerate the mortgage application process. No more clerical grunt work! Mortgages for Financial Services Cloud can unify the mortgage experience for borrowers, lenders, and partners. This includes guided loan applications to speed up the mortgage process, streamlined document tracking, and approvals, and a mortgage data model for lenders to build deeper, more complete relationships with each borrower.
Now that you know the basics, you can move on to set up basic user access to Mortgage features in the next unit.
Resources