SAN FRANCISCO–(COMMERCIAL WIRE)–Mortgage lenders know they must offer a superior experience to acquire repeat business and gain customer referrals. However, the mortgage process remains stressful for borrowers, with 1 in 5 reporting a problem with their transaction. New research from Snapdocs and STRATMOR Group published today bridges that gap, uncovering common pain points throughout the mortgage process and offering recommendations for lenders to improve the borrower experience. To see the full results, download the “State of Borrower Experience” report here.
“Lenders need to find new ways to compete for business in this market. While creating a best-in-class borrower experience is a proven strategy, there is no consensus on what ‘best-in-class’ means, let alone how to measure it,” said Garth Graham, Senior Partner, STRATMOR Group. “This research provides granular insight into the key ‘moments that matter’ so lenders can start building their CX strategies around empirical data.”
The report surveyed more than 7,000 US borrowers, all of whom completed a mortgage transaction in the previous nine months. The findings show that investing in technology and process improvements later in the mortgage process can improve the borrower experience. Key findings include:
Borrowers are generally happy with the application process: Fewer borrowers experience difficulty completing the loan application compared to other steps in the mortgage process. 67% of respondents rated the experience of completing a loan application as an 8 or higher on a 10-point scale.
Document collection and processing issues hurt the borrower experience: Unreasonable document requests caused a 70-point drop in NPS, the most significant impact on borrower satisfaction throughout the mortgage process.
Borrowers experience more frequent and significant problems during closing: More than one in three respondents experienced an issue during shutdown, reducing NPS by 34 points; respondents cited lack of preparation, delays, or closing errors as the key issues that affected their experience.
Snapdocs and STRAMOR offer complementary diagnostic assessments to help lenders understand how they measure up against these industry benchmarks and create customized strategies to optimize your borrowing experience. To get started, visit here.
“As the mortgage landscape becomes more competitive, lenders need the best knowledge, tools and resources to compete and win over borrowers,” said Michael Sachdev, president of Snapdocs. “This new report, along with our custom assessments, equips lenders to assess their borrower experience against industry benchmarks, understand opportunities for improvement, and make changes that encourage repeat business and gain referrals from customers”.
Snapdocs and STRATMOR will present the full findings of “The State of the Borrower Experience” in a webinar with MBA on August 31, 2022. To sign up for the session or to receive upcoming research from Snapdocs and STRATMOR, visit here.
About Snapdocs
Snapdocs is the leading digital closing platform in the mortgage industry. Powering millions of closings each year, Snapdocs combines an open platform, proprietary AI technology, the largest settlement network, and a team of industry experts to ensure digital closing success. Our proven approach enables leading lenders and title companies to automate the closing process and turn it into a competitive advantage. Using Snapdocs, lenders and title companies close more loans at lower costs while providing the modern, reference-worthy digital experience borrowers expect. For more information, please visit here.
About the STRATMOR Group
STRATMOR Group is a leading mortgage industry advisory firm offering a variety of programs and services designed to advise lender CEOs and CEOs. STRATMOR serves more than 250 companies annually, providing strategies that increase growth and improve profitability in sales, marketing, technology, operations, and mergers and acquisitions. The company leverages comprehensive, proprietary data and key insights gained through extensive experience in the mortgage industry. STRATMOR is well known for its financial modeling and collaboration with the Mortgage Bankers Association on the PGR: MBA and the STRATMOR Peer Group Roundtables Program. Learn more about STRATMOR on their website at www.stratmorgroup.com.
