Do you know what your house smells like? Probably not — unless you haven’t been there in awhile, in which case you may detect a mixture of vanilla and soy sauce. Or musty books and cigarette smoke. You have a moment when you walk in the door where the smell lingers, then it disappears, not to return until you take another hiatus.
This here-today-gone-tomorrow phenomenon isn’t isolated to odors.
First-Time Homebuyers Are Often Surprised By the Amount of Time, Effort and Paperwork Involved In Creating a Loan.
Everyone’s experience is different, but the reaction many have is overwhelmed confusion. “I’ve already sent you that information,” they might say. Or, “Why do I have to sign these papers again when I’ve already done it twice?”
Mortgage lenders may answer these complaints with, “It’s just the way things are done.”
Real estate and banking professionals are used to duplicate paperwork and therefore aren’t as sensitive to its inconveniences as first time homebuyers. It’s their job to deal with delays, errors in documentation and complications. It is human nature to become accustomed to things that happen frequently, even if they are unpleasant.
But Homebuyers Have a Point.
They may be more likely to spot inefficiencies than an industry professional because they aren’t used to the “way things are” and haven’t accepted that they have to be that way. Their “nose” is sensitive—a good thing, for spotting problems.
This is one reason the Consumer Financial Protection Bureau (CFPB) enacted the TRID rule: to change the consumer’s experience for the better. It was like a parent coming into a college dorm, wrinkling their nose and saying, “Something’s gone rotten. You should check your kitchen.”
Changing processes and procedures might seem inconvenient and expensive, but it could make your job much easier in the long run. Here are a few more reasons:
1. Regulatory Oversight is Empowering the Homebuyer
Gone are the days when a homebuyer’s venting goes unnoticed. The Consumer Financial Protection Bureau (CFPB) allows homebuyers can file complaints on its website—and this data is public.
2. The Rise of the Millennial
Millennials hold 68% of the first time homebuyer market. They’re also accustomed to new technologies and streamlined processes, having grown up in arguably the fastest changing environment since the Industrial Revolution.
Unfortunately, the mortgage industry isn’t known for its use of technology or streamlined processes. In order to gain a millennial’s loyalty, financial institutions would behoove themselves to be up to date on the latest and greatest.
3. The Customer Is Always Right
Your customers impact your paycheck. In the short term it means getting paid on a single transaction, but in the long run it means building a successful pipeline with repeat customers and referrals. If the customer isn’t happy, no one’s happy. So, what sort of rotten policies, procedures and tools could be smelling up your mortgage process?
1. Redundant paperwork, procedures and policies
2. Incomplete records of communications/actions taken on a mortgage loan file
3. Unexplained or confusing policies, forms and procedures