For mortgage lenders, technology is a central part of revenue generation, largely because it makes processes more efficient than they were in the days of all-manual origination.
But the mortgage technology stack that most Loan Advisors have today still requires them to carry out a lot of manual processes in order to get underwriter-ready loans. Spread over an entire organization, those manual processes amount to a lot of lost time, which means a lot of missed opportunities to drive top-line revenue.
But exactly how much could a mortgage technology solution change things? A lot, actually. In fact, our customers have seen such significant revenue improvements after adding Cloudvirga to their tech stack that we created an ROI calculator to help other lenders understand…
- How much money they could save by tapping into the power of compliant automation.
- How much additional revenue their Originators could be generating with the efficiency and time savings our software enables.
Read on for a breakdown of all the areas you could be driving more revenue with support from Cloudvirga’s mortgage technology.
1. Deal Structuring: Complete Deals Within Seconds
Deal structuring is at the core of what Loan Advisors do. With Cloudvirga, they can do it faster and more accurately than with loan origination software alone.
This is possible thanks to the intelligent, compliant automation that powers our mortgage technology: as soon as a borrower submits a digital application, our system gives Loan Advisors access to more than a dozen data points, including product eligibility and fees, reserve calculations, mortgage insurance pricing, and more.
This function yields several benefits:
- With data from both the borrower’s application and a variety of third-party platforms visible in a single dashboard, Loan Advisors can focus on talking and listening to borrowers during initial conversations, rather than hopping between systems to structure a deal. This helps build rapport and trust.
- Because data comes directly from the source, you never have to offer borrowers an estimate – instead, they see real-world pricing. This increases borrower confidence in the loan you’re structuring, which makes them more likely to convert.
- The automated and interconnected systems ensure that products, pricing, and fees update every time you change a parameter based on a borrower conversation. This helps ensure that you’re always compliant.
What’s more, Cloudvirga’s mortgage technology captures all relevant loan information in visual formats that borrowers can view in real time, even if they’re in a different location than their Loan Advisor (see figure 1).
Figure 1, Detailed Loan Summary
Briefly, Cloudvirga facilitates deal structuring by turbo-charging a lender’s underlying mortgage technology stack: it pulls together dozens of data points to empower Loan Advisors to offer borrowers real-time, real-world loan scenarios, which shortens the time from application to structured deal.
This means Originators can deliver underwriter-ready loans to borrowers immediately after they’ve completed their application, when they’re highly motivated to move forward on the loan and before they have a chance to shop around.
2. Disclosures: Automated Guardrails to Let Loan Advisors Move Faster
When Loan Advisors can send disclosures quickly, they tend to close more loans. Cloudvirga’s system makes it possible to send disclosures and get borrowers’ signatures during an initial phone call.
What’s more, Loan Advisors can send disclosures without support from an Initial Disclosure Desk. That’s possible thanks to the “automated guardrails” within the Cloudvirga system:
- Disclosure document packets are generated automatically, based on the specific loan you generate for a borrower, which means you’ll never send the wrong disclosures because of human error.
- Automatic pricing, product, and fee updates minimize tolerance cures: loan parameters shared with borrowers aren’t good faith estimates. They’re actual loan terms.
The potential time and money savings here may be modest for any given loan, but multiplied by every loan generated by every Loan Advisor, the savings add up fast. But that’s not the only benefit automated disclosures offer – in fact, there’s a whole cascade:
- While disclosures are being auto-generated, the Loan Advisor can walk borrowers through the needs list to ensure they know what actions to take to finalize their loan.
- To follow along in the Consumer Portal, borrowers have to eConsent. When this step arises, Loan Advisors can sing the praises of eSign: for borrowers it saves time and hassle. For lenders, it also saves money.
- When borrowers consent to eSigning, they set the stage for a faster and more efficient remainder of the lending process.
Again, when these modifications are applied to every loan a lender originates, the savings in time and money can be significant. Factor in the savings from fewer errors in disclosures, and the savings pile up even more.
3. Appraisal Management: Borrower Skin in the Game Earlier with Real-Time Capabilities
With traditional mortgage technology software, the lender orders an appraisal as soon as the borrower has signed the initial disclosures. With Cloudvirga powering your point of sale, borrowers can handle this task in real time, as part of their application workflow.
This is possible thanks to Cloudvirga’s partnership with EXOS, a leading provider of cloud-based solutions to real estate lenders and servicers. The partnership enables not only a more streamlined appraisal experience but also a smoother way to handle other processes, like title closing and scheduling.
It works like this: once the borrower has eSigned, they see an appraisal ordering screen, where they can input their payment info and submit their order. They can then schedule the appraisal appointment and check its status at any time from their portal.
This offers a few benefits:
- It helps ease borrower concern about reading credit card numbers over the phone to a Loan Advisor, which can make the process run more smoothly.
- It reduces compliance risk by eliminating any questionable payment card storage practices that might have otherwise happened when borrowers read their info to Loan Advisors.
- It creates a complete loan file early in the lending process.
- It lets lenders create a sense of urgency – and lets borrowers act on that urgency.
- It streamlines the mortgage borrowing process so that borrowers can easily handle the entire experience on a mobile device.
In brief, automated appraisal management empowers both borrowers and lenders while reducing compliance risk.
4. One-Click Dual AUS: A Best-Fit Loan Every Time
Most Loan Advisors prefer either Fannie Mae’s or Freddie Mac’s underwriting platform. On the phone with a borrower, they’re likely to use just one, rather than logging in to a second site to run the scenario twice and create additional lag time in the transaction.
This, of course, could result in a borrower not getting the absolute best-fit loan for their circumstances.
Cloudvirga’s one-click dual AUS solves this problem by running data simultaneously through both Fannie Mae and Freddie Mac. It also applies business logic and predictive analytics; the result is that that Loan Advisors can find a best-fit product without any awkward pauses on the phone and without having to juggle multiple logins on their screen.
This system also increases the likelihood that a borrower will qualify for an appraisal waiver: after being run through both systems, 16 percent of homes qualify for a property inspection waiver, which saves qualifying borrowers an average of $450.
5. Eliminating Distractions: Loan Advisors Can Focus on Relationships
A lot of the work Loan Advisors do requires paying careful attention to tiny details to ensure accuracy and compliance. But in the era of big data, there’s no reason this still has to be the case. Layering mortgage technology like Cloudvirga on top of existing loan origination software can automate many of the smaller tasks Loan Advisors are expected to carry out so that their time is free to build relationships with borrowers.
In fact, we ran a real-world test and found that a Loan Advisor empowered with Cloudvirga could structure 27 new loans in the time it took a Loan Advisor using a traditional POS / LOS combination to structure just one (see Figure 2).
In that trial, a Loan Advisor was able to create an underwriter-ready loan in just eight minutes.
Figure 2, Time to Generate Loan
6. Consumer Portal: Let Borrowers Drive the Process Forward
Borrowers want to be able to check in on the status of their loan at any time – not just when their Loan Advisor is on the clock. The Cloudvirga consumer portal makes this possible by empowering borrowers to play a more active role in the borrowing process.
In the consumer portal, borrowers can…
- Consent to eVerify their assets, income, and employment directly in the application, which saves lenders time tracking down documents.
- Order a credit report during the application.
- Upload and review information in the secure DocVault.
When mortgage technology empowers borrowers to push their loan application forward, the process moves faster, which benefits everyone involved.
7. One-Call Commit: A Huge Opportunity for Top-Line Growth
Thanks to the speedy deal structuring capabilities, Cloudvirga enables Loan Advisors go from application to appraisal in less than 30 minutes, on a single phone call.
But the streamlined back end that makes this possible doesn’t just mean cost savings: having access to a one-call commit empowers Loan Officers to get borrowers financially invested during an initial conversation, which reduces the likelihood that they’ll shop around with other lenders.
For lenders who feel like there’s a leak early in their sales funnel, the one-call commit is one of the surest ways to plug it.
Level Up Your Mortgage Technology to Reduce Costs and Drive More Revenue
The cost of originating a mortgage has been creeping up for years. In the same timeframe, the number of lenders offering mortgage products has exploded as disruptor fintechs have burst onto the scene.
Lenders who want to both manage costs and maintain a positive ROI for every loan they originate have to adopt solutions that streamline data sources, automate compliance, and empower every stakeholder to drive the process forward.
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