{"id":493095,"date":"2021-05-13T09:03:32","date_gmt":"2021-05-13T13:03:32","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/ice-mortgage-technology-borrower-and-lender-survey-shows-momentous-surge-in-technology-adoption\/"},"modified":"2021-05-13T09:03:32","modified_gmt":"2021-05-13T13:03:32","slug":"ice-mortgage-technology-borrower-and-lender-survey-shows-momentous-surge-in-technology-adoption","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/ice-mortgage-technology-borrower-and-lender-survey-shows-momentous-surge-in-technology-adoption\/","title":{"rendered":"ICE Mortgage Technology Borrower and Lender Survey Shows Momentous Surge in Technology Adoption"},"content":{"rendered":"

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ICE Mortgage Technology Borrower and Lender Survey Shows Momentous Surge in Technology Adoption<\/b><\/p>\n

Record volume during pandemic shifts industry to increased digital mortgage focus <\/i><\/p>\n

PLEASANTON, Calif.–(BUSINESS WIRE<\/a>)–ICE Mortgage Technology\u2122<\/sup><\/a>, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology and market infrastructure, today shared that this past year borrowers took advantage of historically low interest rates and the mortgage industry embraced digital mortgages more than ever before. According to ICE Mortgage Technology\u2019s\u2122<\/sup><\/a> latest Borrower and Lender Insights Survey<\/a>, the pandemic has permanently changed the way consumers utilize technology and those looking to buy or refinance a home are seeking lenders who offer online tools to complete their mortgage loans from home.\n<\/p>\n

This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20210513005319\/en\/<\/a><\/p>\n

\nThe overwhelming majority (90%) of lenders believe that technology can help improve the mortgage application process, citing benefits that include simplifying the entire process (74%), reducing time to close (70%) and minimizing data entry (67%).\n<\/p>\n

\n\u201cLast year brought our industry a perfect storm,\u201d said Joe Tyrrell, President, ICE Mortgage Technology. \u201cYou not only had COVID, which required lenders to shift to virtual workforces, but you also had to conduct business in a safe and socially distanced way with borrowers; at the same time we were experiencing a historical increase in loan volume. This caused many lenders to reevaluate their technology partners, how they were leveraging technology, the systems that they employed, and the tools that they relied on. We heard many stories from our lenders across the country that had to completely and permanently shift the way they served borrowers.\u201d\n<\/p>\n

Importance of digital solutions on the rise <\/b><\/p>\n

\nAccording to the survey, the importance of lenders offering digital solutions such as online applications during the lending process increased for borrowers in 2020, with 58% saying the availability of an online application would likely impact their lender decision (up from 50% in 2018*). While still important, the offering of a mobile app specifically was less likely to influence borrowers\u2019 lender selection, with 47% saying availability of one would factor into their decision in 2020 (compared to 40% in 2018).\n<\/p>\n

\nHomeowners who used an online application appreciated the simpler application process (55%), reduced time to close (53%) and resulted in fewer in-person interactions (49%). Not surprisingly, decreased in-person interactions grew in importance in 2020, as just 37% of consumers in 2018 cited \u2018no need to meet in person\u2019 as something they liked about their online application process. Whether they had been through the mortgage loan process or not, 64% of consumers surveyed believe that an online mortgage process would make buying a home or refinancing easier than an in-person process.\n<\/p>\n

\n\u201cFrom a borrower\u2019s perspective, the pandemic has accelerated the demand for a consistent, digital first borrowing experience,\u201d said Tyrrell. \u201cSigning documents electronically is quickly becoming the minimum, and borrowers expect a seamless experience from start to finish. In 2020, many lenders cobbled together different solutions to meet borrower demands, but that often led to a more confusing, fragmented process. COVID highlighted the need for a single consistent digital experience for borrowers.\u201d\n<\/p>\n

\nCurrently, online applications and online portals are the digital tools most offered among lenders, with more than nine in 10 offering both options to borrowers (91%) respectively. Of lenders who offer online applications, 60% said more than half of all loan applications are submitted online, while 38% said more than 80% of their applications were completed online in 2020. However, traditional loan application methods may be more common at larger organizations. Half of large institutional lenders, or those with 200 or more employees, indicated that less than 50% of their loan applications were submitted online.\n<\/p>\n

\nBorrower respondents who were offered online and\/or mobile options by their lenders took advantage of those tools during the mortgage loan process. 61% of borrowers used an online application in 2020, slightly up from 58% in 2018. 61% also used an online portal for electronically signing and notarizing documents, compared to 56% in 2018.\n<\/p>\n

Borrowers, lenders agree on amount of communication, but not necessarily the channel<\/b><\/p>\n

\nResponses from borrowers also revealed opportunities throughout the mortgage application process for better alignment, understanding and service on the lender\u2019s part. Specifically, borrowers and lenders had differing views on the time needed to fill out a loan application and the method used for ongoing communication with borrowers. However, lenders and borrowers tended to agree on the right amount of communication to be used throughout the mortgage loan process.\n<\/p>\n

\nAdditional insights included:\n<\/p>\n