What is Mortgage Point-of-Sale (POS) Software and How Can It Empower More Efficient Lending?

It’s hard to read an article about the mortgage industry these days that doesn’t include the phrase “tech disruption.” Technology is changing the U.S. mortgage industry, with the COVID-19 pandemic only accelerating a trend that’s been growing for years. Many lenders understand the need for modernization based on borrower demand for an intuitive, digitally-led process. The less discussed but equally important reason for digital upgrades is the massive uplift in efficiency lending teams can hope to gain.

The best tool to improve borrower experience and increase lender efficiency? Mortgage point-of-sale (POS) software.

What is mortgage point-of-sale software?

Mortgage point-of-sale software streamlines the loan process for both lending teams and borrowers by providing a tech-forward platform that organizes the loan in one place. A mortgage POS system provides value in multiple ways for both borrowers on the front end and lending professionals in the back office.

For borrowers, a POS platform enables a digitally empowered experience that allows them to apply for a mortgage from their desktop or mobile device, easily upload documents, track the progress of their loan, communicate with their loan officer seamlessly, and more.

For lenders, a POS platform allows for document management, automated employment verification, fast and easy product and pricing comparison, compliance control, and more.

Increase efficiency through mortgage POS technology

From faster processing times to lower defaults, lenders who use a digital mortgage point-of-sale platform consistently outperform those using paper-based, traditional practices.

Quicker time to close

According to a report by FDIC Consumer Research, lenders on digital platforms enjoy processing times that average 10 days (or around 20%) shorter than average.

Similarly, loans on the Maxwell platform close much faster than industry benchmarks—in our case, we close loans 45% faster. Plus, those processing times are less sensitive to spikes in loan demand, helping high-tech lenders approach volatile market conditions with increased elasticity and fewer bottlenecks.

Reduced risk

Along with an accelerated timeline, lending teams using tech-empowered POS platforms experience reduced risk in the loans they process. Specifically, these lenders see almost 25% fewer defaults among their borrowers. By automatically flagging certain patterns associated with risk, digital platforms help lenders fulfill safer loans benefitting from quick, yet thorough borrower screening.

Increased lending team productivity

A major way high-tech solutions help lending teams achieve efficiency is by increasing the productivity of individual employees. By automating detail-intensive, error-prone tasks and consolidating multiple work sources, digital mortgage platforms allow lending teams to increase the loans they take on.

On Maxwell, for instance, loan officers carry an average of 20% more loans than their peers. That metric alone helps lenders using technology like Maxwell to develop a competitive advantage, giving them the ability to sustain increased volume in booming markets and to remain lean and agile when volume constricts.

Mortgage POS technology features that boost profitability

So, what specific features and tools drive productivity that matters to lenders’ bottom lines? The FDIC’s study found that several automations drive the dramatically improved numbers of tech-empowered lenders:

—Ability to submit the loan application and other necessary documents online

—Integrations that help process and underwrite the loan

—Connectivity with financial institutions to verify balances and income

—Automated employment checks

—Algorithms that identify patterns associated with fraud

—A centralized platform for the entire loan process

Put together, these features help lenders optimize metrics surrounding documentation, borrower communication, financial verifications, and more.

On Maxwell, for example, lenders gather documents 73% faster than the industry average. By improving the way lending professionals perform individual tasks, digital platforms help achieve a faster, more reliable, highly methodical loan process.

If lenders hope to maintain an efficient, profitable business now and in coming years, they need to invest in a POS system that empowers team productivity from application to closing.

Selecting a technology partner to drive your efficiency

What does the right POS technology solution look like for your lending team?

With a growing number of mortgage technology companies, it can be hard to know which option fits your needs. Choosing a partner takes time and careful consideration. When vetting possibilities, you’ll want to consider feature sets, implementation time, and pricing—but also be sure to think through equally vital elements like partnership philosophy, communication style, and customer support. 

While your wishlist will vary based on business needs, consider seeking the following features when researching digital mortgage platform options:

A design-first platform that renders seamlessly on various devices, including mobile

Intuitive automations that reduce the amount of time a borrower needs to spend filling out applications and completing loan-related tasks 

Smart connections with institutions that pull in financial documentation for borrowers and allow for credit card payments

Tech-empowered tools that allow lenders and borrowers to complete tasks that progress the loan even while on-the-go

Customizable elements to brand the design and correlate your company with the lending experience in the borrower’s mind

Robust integrations that allow for seamless workflows within one platform

Collaborative tools that keep all parties—including borrower, real estate agent, loan officer, and processor—involved with seamless updates and pre-approvals

After deciding on the features and services that matter to you, take your time interviewing the team on their client-facing practices, culture, and communication. During these conversations, pay attention to the questions you’re asked as well. Since you’ll be relying on your technology partner to power the work your team undertakes each day, you need to ensure the provider is eager to dig into your unique needs, goals, and pain points.

The right technology partner will embed its team into yours, acting as an extension of your lending practices and working in lock-step with you to unearth efficiencies and satisfy your borrowers.

How Maxwell can help

Before launching Maxwell, our founding team spent a year speaking with thousands of lending professionals about their everyday realities. Based on the feedback from those conversations, we built the Maxwell point-of-sale digital mortgage platform to streamline pain points into efficient processes. Automations that keep borrowers informed and the process moving quickly result in loans that close more than 45% faster than the national average.

To learn more about Maxwell’s digital mortgage features, click here.

Download our free ebook “The Essential Guide to Lending Efficiency” to learn actionable ways to build a more profitable loan process.

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