Data Facts Lending Solutions Blog

Will Technology Replace the Loan Officer? We Don’t Think So

by Matt Holmes

Aug 10, 2020 9:14:22 AM

Loan Officer

It’s a question that’s been tossed around since the dawn of computers. Will technology replace the need for human interaction? Will we lose our jobs to the robots? With the rise of artificial intelligence in the mortgage industry, and ease of access to mobile apps that can compare mortgage products, calculate loan amounts, and view application statuses, where does the human element fit in?

The good news is that if you’re a loan officer, your job is probably safe from the robots. But it doesn’t mean you shouldn’t adapt to how the industry is changing. Here’s what we mean:

First off, Let’s think about the work of a loan officer. The job is complex, and it can’t be easily replicated with artificial intelligence. Granted, consumers want the convenience of technology while they’re shopping, but that’s not all they want. When complexities arise, there’s never a substitute for a human expert in the field- and that’s where the loan officer comes in.

Plus, today’s borrower wants a mix between traditional and digital channels. According to PWC, 75% of borrowers prefer their mortgage experience to be multi-channeled, while only 28% say they are looking for a purely digital experience.

With that said, the youngest generation of homebuyers knows exactly how to determine whether you’re the right fit. Millennial borrowers will do their research before making a decision, so it’s essential to make sure you’re located anywhere they can find you. Have your bases covered on LinkedIn, Facebook, and your website.

There also isn’t any indication that preference for personal experiences is waning either. At the beginning of the mortgage process, low rates might draw in a customer, but it’s the loan officer that causes a lasting impression and generates memorable experiences for the customer. Fees and terms only account for 10% of borrower opinions, while engagements with loan officers account for nearly 50%. Make sure you’re assigning only a single point of contact per borrower, so they’re getting the one-to-one experience they’re looking for.

The bottom line is, the more access a consumer has to technology, the more they desire the human connection. Check out our eBook, “A Loan Officer’s Guide to Millennial Homebuyers” for a closer look into how to understand the modern homebuyer.

Source:

https://www.pwc.com/us/en/advisory/customer-impact/assets/mortgage-lending-customer-insights-us-experience-radar-2013.pdf

Topics: Mortgage loan, Mortgage lenders, digital mortgage

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