The pace of innovation in residential lending has undoubtedly been slower than other areas of financial services, but in recent years the industry has taken a few massive steps forward.
We’ve digitized much of the mortgage application process, solving for many of the pain points that plagued homebuyers for years. Borrowers don’t miss the days of bringing large folders to their bank with paystubs, bank statements (even the blank pages!), years’ worth of tax returns and other paperwork that a human would patiently photocopy before sitting down to process – sometimes for hours and days to come. And we can nearly all agree that typing our own name into a self-service tool is more efficient than spelling it out loud for a loan officer.
But the idea that LOs are becoming less vital to the process is simply not one I can get behind. It’s true that the days of the LO functioning as a data gatherer are rapidly fading away, but their role is shifting to an even more critical one – an expert counselor for homebuyers.