Technology and Mortgage Brokering
In today’s competitive and uncertain mortgage industry, having access to the tools that enable a broker to differentiate themselves from the crowd is a real no-brainer. Efficient and effective communication and connectivity has been never been more important, and it was with that in mind that Fundever developed its own piece of FinTech software: a platform which aims to improve connectivity between brokers and commercial lenders.
The software acts as a market place where brokers can submit borrower applications for lenders to consider. From there, only lenders with genuine interest in that loan will contact the broker. “It allows lenders to quickly determine if they have an appetite for your deal and allows the broker to market the application to all of the lenders in Canada,” says Brad James from Fundever. “It’s a great marketing tool and helps brokers increase efficiency on a day to day basis.”
In most cases today, after collating all of the relevant information for a mortgage request, a broker emails the group of lenders in their rolodex. This process often takes more of a human approach than a scientific one, with most brokers reaching out to a limited number of lenders. “This is very problematic and is not efficient,” says James. “Brokers’ frame of reference is based upon what a lender has done in the past and not their current or future appetite for loans.”
The Fundever system was developed in conjunction with lenders and, as a result, brokers only have to provide the bare essentials when they send out a mortgage request. Free to use and only available to licensed mortgage brokers, the Fundever platform provides brokers with approval options from the entire market. “That increases the value to the end client, it increases speed, and for brokers it eliminates the possibility of being shopped,” James says. “It changes the value proposition to the client, because when the approval comes back the broker can categorically say ‘this is the best we can do.’”
In highlighting the importance of technology in the mortgage brokering space, Dong Lee, President of Mortgage Architects, points to a discussion paper by Colin Pohl of Oxford University which found that technology will make 47% of the jobs in the United States obsolete in 10-15 years. “There is no reason for us to think that technology won’t impact the mortgage ecosystem as we know it today,” Lee says. “Wearable technology may simplify the mortgage closing process by reading your heart beat to confirm your identity – how cool is that.”
Dong sees firsthand how large a role the internet and social media is playing in enabling consumers to evaluate and then choose their mortgage brokers. “If you chose not to embrace it then you may be losing out on a new generation of customers,” Lee says.
Speaking about the Fundever platform, Lee says: “It makes sense to simplify the commercial mortgage process by streamlining the process of finding the right lender for your clients. Lenders are able to update their lending appetite on a dime and ensure only those deals they are interested in come through.”