Leveraging PropTech to Evolve within the Rapidly Changing Mortgage Landscape
Over the past decade, lenders and consumers have experienced a profound innovation-driven technological evolution in how they operate and interact within the mortgage landscape. Marked by the demand for streamlined services that improve the customer experience, mortgage professionals have embraced tech stacks with automated workflows in lieu of more traditional, slow-moving loan management systems. Impactful efficiency is the name of the game, and lenders who fail to evolve with the changing tides are falling behind their competitors when it comes to closing loans and servicing customers. Additionally, recent regulatory decisions propelled the industry and market to undergo significant changes, which have only intensified the need for modern, digitally driven solutions.
The recent $418 million National Association of Realtors (NAR) settlement exemplifies how the relationship between mortgage professionals and borrowers can radically shift overnight. Going into effect on August 17th, this settlement will require the association to end the long-standing rule that mandates seller-side agents make an offer of compensation for buyer-side agents.
Amid its multitude of changes, one of the more important effects of the settlement is that agents partnering with buyers will now have to sign a buyer representation agreement that outlines the terms of their working relationship. This will only further necessitate agents demonstrate what they bring to the table for borrowers looking to bring them into their homebuying process – a challenge in a market that is becoming increasingly dominated by direct-to-consumer websites such as Zillow and Redfin.
In this new landscape, both agents and brokers will need to showcase their competitive edge in the premium segments of the market and for the homebuyers who are willing to carve out the commission costs.
The trend line of transparency, customer autonomy, and customized service has boomed in other industries, and the mortgage industry isn’t immune. Over time, consumers have become more attracted to concierge service brokerages, as well as agents who leverage technology that provides a seamless and personalized experience throughout the homebuying process.
In order to provide this service, agents and brokers will need to not only be equipped with the right suite of digital tools – they’ll also need to understand how to work in compliance with the new requirements and laws.
As a base framework, agents and brokers should look to their mortgage professional counter parts should understand how to fully utilize and integrate this suite of products – also known as a tech stack. If you aren’t familiar, a tech stack in mortgage combines income, employment verification, the underwriting engine, and the point of sale into an integrated, digital package. The implementation of a strong tech stack can elevate business operations by enhancing impactful and quality efficiency while decreasing operational costs.
Agents should start Integrating a tech stack into their business. One that was made with the core vision of helping agents and brokers easily navigate the changing landscape will be a key competitive differentiator. Recently, Mortgage Automation Technologies launched The BIG Agent, a fintech software created by real estate agents, for real estate agents that are looking to safeguard and streamline their systems. Operating on the core tenets of simplifying workflows and providing agent flexibility, The BIG AGENT looks to make buyer agency agreements easy, keep agents compliant with new laws, and strengthen the broker-agent-consumer relationship while also launching the base of a first of its kind
Agent and broker focused “Tech-Stack. Specific features include:
Broker Compliance: By tracking and maintaining consumer data in a single solution, brokers can ensure that clients have signed required agreements and received all necessary disclosures. The BIG Agent provides tracking for buyer agency contracts, listings, open house check-in agency registration, and offer management.
Buyer Agency Agreements: The BIG Agent streamlines the process of obtaining consumer signatures on buyer agency agreements through a consumer-direct interview, allowing customers to self-enter most of the required information. This enables agents to generate agreements from their phones within minutes.
Open House Management: The platform offers a QR code streamlined check-in process for open house attendees, ensuring agency vetting and required disclosures are completed before entry.
Listing Landing Pages & Buyer Compensation Disclosure: The BIG Agent features a private broker channel interface detached from IDX feeds or MLS, allowing listing agents to create unique listing card QR codes and URLs. This includes various disclosure options and the ability to manage direct offers from consumers and agents.
Affordable Solutions: Brokers can collaborate with sponsoring lenders who meet minimum technology standards, assisting in the cost-effective implementation of The BIG Agent.
Understanding how to put the consumer first and solidify those relationships will never become a fully automated process and will always require that human touch. However, as the industry continues to shift, leveraging the right kinds of technology can serve as the throughline which allows the great agents and brokers to differentiate themselves from the good ones.
Matthew VanFossen, CMB is the Chief Executive Officer of Mortgage Automation Technologies and the Absolute Home Mortgage Corporation.