LoanDepot courts mortgage brokers with new closing capabilities

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LoanDepot, known largely for lending directly to consumers, is improving its game with mortgage brokers with improvements to its mello broker portal that the company says will speed loan closings.

LoanDepot Wholesale’s mello broker portal upgrades include “Closing Connection” capabilities, including:

  • Closing validations inform brokers of the steps to follow before scheduling closing
  • Final charges can be entered, updated and approved, and a summary of the closing of the collection is provided
  • When validations are completed, brokers can closure schedule, then update or cancel the closing dates
  • Brokers can generate information pre-closing package to review documents and accurately calculate registration fees
  • “Before Documents” conditions can be viewed and pending documents can be downloaded

“In today’s market, speed can be a key factor in the home buying process,” Jeff Walsh, CRO at LoanDepot, said in a statement. “The improved functionality of our broker portal enables LoanDepot’s wholesale partners to better serve their buyers, providing a faster and more intuitive closing process. “

LoanDepot makes most of its loans through its retail channel, which includes a direct-to-consumer channel launched in 2010, and through a network of local loan officers launched in 2013 with the acquisition of immortgage and expanded through the acquisition in 2015 of Mortgage Master.

During the pandemic, LoanDepot experienced a boom in mortgage refinancing through its retail channel. But its partner channel accounts for a growing percentage of LoanDepot’s business as the refi boom wears off, even though demand for purchase loans remains strong.

LoanDepot Mortgage Arrangements by Channel

Source: Data from LoanDepot regulatory files compiled by Inman

LoanDepot’s partnership channel has three segments: Joint Ventures with Home Builders, Referral Relationships, and LoanDepot Wholesale, the company’s “third-party prescription” division serving mortgage brokers and correspondent lenders.

While LoanDepot does not segment channels into segments, the partner channel as a whole accounted for $ 7 billion in loans in the third quarter, or roughly 22% of total originations. That’s up from 19% of creations in the first and second quarters of the year, when the refi boom was still strong.

As mortgage lenders move on from highly profitable refinances and compete for homebuyers to grow their purchase lending business, mortgage brokers have local connections that make them a major source of business. LoanDepot founder and CEO Anthony Hsieh said the company’s $ 80 million end-to-end digital lending platform, mello, would allow it to expand operations “very efficiently.”

Lenders who hope to compete for business on price are investing in technologies that can automate much of the application and underwriting process.

Like LoanDepot, the nation’s largest mortgage lender, Rocket Mortgage, is known primarily as a direct lender, with consumers flocking to its website and app to take out loans. But Rocket is making its mortgage origination technology available to banks and credit unions as an end-to-end “mortgage as a service” through Salesforce Financial Services Cloud.

Rocket Pro TPO – the division of Rocket Mortgage that works with mortgage brokers – has launched several initiatives to court mortgage brokers, including tools to help them build and maintain relationships with real estate agents.

United Wholesale Mortgage (UWM) has a new self-service platform for mortgage brokers, BOLT, which automatically categorizes and extracts information from documents to provide initial approvals to qualified borrowers in as little as 15 minutes.

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