Making mortgage process digitization easy

Joshua Hager, head of mortgage operations at Button Finance, shares how he achieved success in mortgage process digitization and offers his top tip for lending organizations that are looking to go digital. In this interview, Hager offers a brief overview of the session he will feature in at PEX Live: Digital Mortgage Process 2022.

PEX Network: Could you tell us more about your experience with transforming the mortgage process and any success stories you have?

Josh Hager: After joining the mortgage world in 2003 and now having worked with five start-ups, I would say watching companies grow, and more importantly people from my team, has been quite rewarding and life changing. When I was with Better Mortgage I was given the opportunity to travel to Oakland, CA, to open that office and train people. I grew that underwriting team from three to 24 people, we had the highest app to fund ratio among three offices and we had the best quality of loans among three offices. 

All of this was accomplished by taking a quality control review process, that was previously handled by managers, and putting it back in the hands of the underwriters. This empowered my team and allowed them to dispute their own discrepancy through our digital platform, allowing for ownership and comradery through digital means of communication. It also allowed my team to provide suggestions on process improvements regarding how the title work flows from team to team and how we could improve the system to cut turn times on files. 

I also have to acknowledge my onboarding and time here at Button Finance as a huge opportunity to transform the mortgage landscape. I have developed a seamless and easy mortgage process that includes a 15-minute application and a six day clear-to-close process that achieves closing in eight days with minimal documentation. We have leveraged technology and created a streamlined underwriting process that allows for even TRID regulated loans to close in a matter of eight days and fund on the 12th day, bringing the mortgage process into the 21st century.

PEX Network: You are participating in a panel which will discuss how to create a seamless consumer experience. Would you say that it is the primary driver behind mortgage process digitization?

JH: We are in a day and age where there has been a huge misunderstanding and mistrust of the mortgage process and even how to apply for a loan. There are a number of driving forces urging the marketplace to digitize this process. Prior to Covid-19 this was happening slowly, although the pandemic sped this along showing us that as a society we were far behind.

When you consider the upcoming generations that will soon be immersed in the homebuying process this is a customer segment that will want immediate answers. They do not want an excessive amount of back and forth with human interaction and due to the transparency in policies and regulation, even with their confusing language, the need for immediate gratification is becoming more of a priority.

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PEX Network: What is your top advice for organizations looking to achieve mortgage process digitization?

JH: When I think of digitizing the mortgage process it is by applying a calm focus to understand what we are digitizing and whether this is a ‘win-win’ situation for all parties involved, both internal and external stakeholders. I live by the belief that when you are able to streamline processes and make it easier for the internal stakeholders it is going to trickle out into your consumer base. So always keep an open mind and have an open heart to understand what makes it easier for all parties.

PEX Network: What key developments do you see happening in the mortgage in the near future?

JH: With inflation expected to be more than 4 per cent in the US in 2022, we are already seeing the burden of first line mortgage rates increasing. Therefore, home equity lenders will be leading the charge in lending, providing more borrower education on how to knowledgeably tap into the equity of their home. 

We will continue to see a push toward full electronic closings in the mortgage sector to provide efficiency in shrinking the application closing rates as people continue to leverage their need for and use of digital tools.

PEX Network: What can attendees expect to learn from your fireside chat session at PEX Live: Digital Mortgage Process 2022?

JH: During our chat attendees can expect to learn how we at Button Finance are bringing the mortgage marketplace in home equity into the 21st century. We will offer insight into how we are advancing our capability to understand borrower needs and create a place where a mortgage loan can be underwritten using minimal viable documentation and how decisions are made efficiently, within any investors risk tolerances.

To hear Hager discuss this topic in more detail register for PEX Live: Digital Mortgage Process 2022.