Streamline Loan Processing – Improve Borrower Pull Through Rate

Streamline Loan Processing – Improve Borrower Pull Through Rate

Mortgage lending has been as competitive as ever, and lenders have been processing regular volumes in the last few months. Having said that, the true winners are the lenders who have the highest rate of application closures.

As the borrower starts engaging with the new technology-enabled lender, the original lender that sourced and spent significant time engaging the potential borrower is left with little revenue to pay the expense of lead generation and loan pre-qualification. It is not uncommon for non-technology-enabled lenders to see pull-through rates (the percentage of close applications) of less than 35% in a refi market. This constitutes a significant expense to these non-technology-enabled lenders. They never get revenue from finished loans but are still responsible for all lead generation, loan prequalification, and other costs.

What can lenders do to improve this pull-through rate?

What factors contribute to a higher pull-through rate? We’d suggest enhanced borrower experience, increased processing speed, and a minimum of back-and-forth iterations with borrowers over missing documents.

A borrower who is satisfied with the overall experience you can provide and whose application is processed quickly, far faster than anybody else, is more likely to convert.

Accelerating Processing

After the borrower submits documentation, the pertinent data must be retrieved and made available in the Loan Origination System (LOS) for review by the Underwriter . For most lenders, this procedure is manual or semi-manual, with assistance from offshore BPO service providers. Additionally, because a big portion of the process is manual, there is a high probability of errors slipping in.

Most lenders would like to make this procedure as quick, efficient, and error-free as possible on their LOS. Privo Processing’s ‘Ready to Setup’ model enables us to quickly onboard you and begin supporting your processing requirements, enabling you to compete in the marketplace.

Our professional team can assist you in managing all loan processing chores, greatly reducing your work and operational costs.

Enhance Borrowers’ Experience

Borrowers are your gold mine, so you must concentrate on making the entire origination process simple for them. From the user interface to making information accessible via mobile devices, it can improve the borrower experience. Successful lenders are already taking significant steps to create a positive borrower experience.

Enhancing the borrowers’ experience has a positive effect on the closure ratio as well. Because when you satisfy borrowers, they are more likely to stay with you and complete the mortgage than go to a competitor.

Summary

For a mortgage lender, streamlining loan processes and reducing turnaround time enables them to close loans faster, maintaining borrower engagement. This contributes to increased pull-through rates and profitability.

Privo Processing has partnered with several lenders to assist them in streamlining their mortgage operations. We can cut origination costs, improve turnaround time, and increase pull-through rates due to our domain experience and technological expertise.