Challenges Faced By A Mortgage Broker in CRE: A Plausible Problem
All a mortgage broker does all day, each day of the year is mortgages. The main focus of their job is getting loans done in a faster and transparent way. With people moving everyday in the industry, there is a level of competition creeping from every end. But the key to find success is to focus on speed and automation.
Even so, there is a big opportunity for brokers to grow their business. Over the years, as a broker, you would have achieved the satisfaction of closing deals. In short, the subsequent requirement of cash flow is always made easier through your end. But there comes a time when you have to handle a lot of bottlenecks in your way of financing. Be it the loan packaging process or the turn-around time, here are some limitations which make the average life of a mortgage broker difficult.
The Haphazard Documentation Phase
The phase which involves the collection of documents can be a pretty hefty task. The assembling of all documents from the borrowers somewhat requires chasing for hours as it is the base for all reporting, planning and cascading. This relentless process takes up all the time which can be used in creating effective loan sizing strategies and is in turn, not a productive process. There are various tools in the market to organize and collate data in a well-structured manner used by the mortgage brokers.
The whole cycle and efforts which you have put through to create the paperwork and correct evaluation of the loan. The time invested to gather borrower’s documents and manage the analysis of the loan cycle is a hefty process and making a deal successful depends on how accurate is the underwriting process. According to the National Association of Realtors, foreign investors alone are expected to deploy $58 billion into the U.S. commercial real estate market between 2016 and 2020. But due to a delay because of susceptibility to human error, a big commission can just as easily slip from your hand.
This string of responsibility added with lesser commissions is what seems to be the major off-putting thing about this profession.
The Relentless Grunt Work
This is no news to you that the process of preparing the documents for a big transaction makes you cringe. This takes up hours and with a minor flaw in the paperwork can raise a havoc of starting everything from scratch. The efforts put in by the team working on the process of loan sizing calculation makes you feel the need to find a quicker and cost-effective alternative. There are effective technology-based tools which can benefit you to deal with this problem.
Technology gives rise to innovation which, in turn, provides an opportunity for brokers to stand out from their competition, if they utilize strategies to create a competitive advantage in their respective market.
Technology can help a mortgage broker in three ways. Firstly, they can create a social media presence to increase their brand recognition and encourage new potential clients to review their menu of offerings. Secondly, they can dispense an easy-to-access loan-application process. And lastly, they can provide an automated-underwriting program to qualify the potential borrower.
Automated-underwriting engines provide immediate loan decisions based on information provided at the start of the application process. By focusing on the three areas to maximise outputs, a mortgage broker can speed up the entire loan process from origination through underwriting — and that means getting paid faster.
On top of improved speed, technology-based platforms include online deal trackers or managers. These tools allow mortgage brokers to keep track, in real time of the status of the loan, thereby delivering an improved customer experience.
To fix the way in which Brokers can maximize the time and resources put in, Clik.ai leverages artificial intelligence to provide a tech-enabled alternative.
Clik.ai is the first to bring automated underwriting for commercial real estate. The aim is to eliminate the manual effort of extracting key financials from financial documents and underwrite within minutes, not hours.