Mortgage servicing has come a long way since the foreclosure crisis, but the housing market's ongoing recovery has opened the door for many new challenges to emerge. Chief among those concerns is a renewed focus on improving the borrower experience due to the fact that the Consumer Financial Protection Bureau (CFPB) has made borrower satisfaction one metric it will use to determine whether a business is fulfilling its obligations to consumers.
Whether you are overcoming challenges in managing mortgage servicing rights transfers or the portfolio retention and organic growth strategies necessary to sustain a profitable business, most servicers are taking a much-needed hard look at their full range of borrower touchpoints.
Here are three ways to improve your borrower communications:
1. Offer multichannel correspondence. The trend in accessing consumer communications is swinging heavily toward online use. In fact, Walker Information estimates that by 2020, the typical borrower will manage 85% of their relationship with financial institutions without human interaction. With new digital lending applications appearing daily, borrowers have fast and easy access to apply for a loan that meets their needs. This means that engaging with borrowers online and through different channels is important now more than ever.
2. Make it easy and personal. In order to stay in the game, it is a necessity to create easy, personalized correspondence that not only lets borrowers know they aren’t just a number, but also keeps them engaged. Think online loan applications that are pre-populated with borrowers’ personal information.
3. Provide fast and accurate document viewing. Communicating solely via print and mail is not going to cut it in today’s world. In order to improve borrowers’ trust and keep them informed of their loan status and other information, it is necessary to provide secure access to exact replicas of all of their loan documents online. Many businesses now upload all necessary documents to an online portal where borrowers can access their information anytime, anywhere.
In order to keep up with borrower demands and satisfy compliance standards, it is necessary to keep borrower communications top-of-mind. To learn more about how you can improve your borrower communications, click here.