IRVINE,
Calif., Oct. 23, 2024 /PRNewswire/
-- Cloudvirga, a leading provider of digital mortgage
point-of-sale platforms, today announced the findings of a consumer
survey that highlighted the increasing digitalization of the
front-end of the mortgage origination process and growing homebuyer
expectations for an even more automated, digital experience.
The survey asked recent homeowners, the majority of whom were
first-time buyers, a series of questions about their experience
during the mortgage application and closing process, including
their perceptions on the use of technology, artificial intelligence
(AI) and automated communications. The survey found that the
majority of participants expressed overall satisfaction with the
digital experience provided by lenders and would expect even more
automation with their next mortgage transaction.
While comfortable with the online and self-serve aspects of the
current origination process, respondents raised serious concerns
over the use of AI in mortgages. This presents a challenge for the
industry as lenders explore when and how to implement new digital
solutions.
"Despite the perception that the mortgage industry is lagging in
terms of technology adoption, our survey found that lenders are
increasingly using digital tools to better engage with borrowers;
and it's clear from this research that borrowers are embracing the
improved automated, less manual experience," said Maria Moskver,
CEO of Cloudvirga. "Having said that, they are concerned about the
role of AI in this process. Our survey results reinforce the
growing consensus that homebuyers are becoming increasingly
tech-savvy and expect the mortgage process to mirror the seamless
digital experiences they encounter in other parts of their
lives."
Key Findings:
- Improved Satisfaction with Digital Tools: A majority of
respondents (71%) indicated they were very satisfied with the
technology provided by their lender for managing the application
process. When asked how responsive the lender's online support was,
more than a quarter (27%) said they were somewhat satisfied and 67%
said they were very satisfied. It is worth noting that more
than 75% of the respondents were first-time buyers which means they
did not have a previous point of reference with which to compare
their experience. Moreover, the respondents skewed younger: 74% of
respondents were 40 years old or younger, clearly a demographic
that is more comfortable with digital technology.
- Future Expectations: A majority of respondents (63%)
would have preferred their experience to be even more digital than
it already was, and 77% of respondents expect their next mortgage
or refinance to be totally digital.
- AI isn't fully embraced: Despite consumer support of
automated technology in the mortgage process, respondents expressed
reluctance when asked specifically about AI— 60% said the use of AI
in the loan process would cause them to select another lender.
- Loan Officers Still Play a Dominant Role: Even though
there is satisfaction with digital processes, still a majority of
respondents (58%) said their loan officer handled the initial
application process for them, a percentage that is expected to
decrease as more digital tools increase fully self-serve options.
Almost half (46%) said their loan officer contacted them directly
via phone or email when additional information or supporting
documents were required. Given the level of overall satisfaction
with their mortgage process—which still involved loan officers in
both the application and ongoing document procurement process—this
underscores that while consumers are eager to embrace technology,
they still want the ability to rely on human assistance when
needed.
- Transparency and Efficiency: A majority of respondents
said they had access to technology that allowed them to receive
real-time updates on loan status (69%), automated document
submission (72%) and access to helpful tools like eSigning (52%),
which have contributed to smoother and faster transactions.
- Documentation Delivery Getting More Digital: Respondents
reported general satisfaction related to submitting and managing
documents with 91% saying they used one system to complete and
upload all required documentation, 92% saying they were somewhat or
very satisfied with the process for submitting documentation.
Moskver continued: "The survey results highlight an important
nuance in consumer expectations during the mortgage process. They
want the ease and efficiency of automated platforms and a
borrower-friendly user interface, but they are still relying on
loan officer involvement. Clearly, while AI is an increasingly
major component of digital mortgage origination, it's still not a
trusted system for many borrowers. Lenders need to be cautious with
how they develop their digital, borrower-first experience, taking a
measured approach that meets consumers where they are. Finally, as
a technology company laser focused on the consumer mortgage
experience, these findings are directing our ongoing development
efforts."
The online research, conducted in September 2024, surveyed more than one thousand
recent homeowners across the country who had bought or refinanced
their home in the past two years. More than three-quarters, or 76%,
of participants were first-time homebuyers.
About Cloudvirga
Cloudvirga is a leading provider of
digital mortgage point-of-sale platforms, designed from the
perspective of increasing consumer engagement. With a focus on
streamlining the loan origination process, Cloudvirga solutions
enhance efficiency and accuracy in the mortgage industry. The
company's commitment to continuous improvement and innovation has
positioned it as a trusted partner for mortgage lenders and brokers
across the nation. Cloudvirga is a subsidiary of Stewart
Information Services Corporation (NYSE:STC), a customer-focused,
global title insurance and real estate services company. For more
information, visit www.cloudvirga.com
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SOURCE Cloudvirga