3 Misconceptions about Borrower Collaboration

In recent months, “Borrower Collaboration” has proven to be a hot topic surrounded by much discussion. However, it has been widely misconstrued in how it fits in with the current mortgage procedure. We’d like to clarify what it really means and the effects it has on inclusion in the closing process. Here are 3 Misconceptions of Borrower Collaboration:

Engaging only at the beginning of the loan embraces full Borrower Collaboration.  

So many people believe that Borrower Collaboration is something that can be achieved with only the application or searching for a Loan, and then no other touchpoints throughout the mortgage process. Technically, yes, you “collaborated”, however, true Borrower Collaboration spans beyond an online origination, engaging and collaborating with consumers from the beginning of the transaction through closing, servicing, and eventually the next loan. Borrower Collaboration should be viewed as a situation where once you are connected, you are connected for life, constantly updating and engaging with borrowers.

Collaborate and done; no relationship required.

This industry must escape this all-too-common mindset, and needs to start moving to real relationships with borrowers. In today’s world, the most relevant way to connect with these customers is through business social media techniques to build electronic relationships with borrowers, from the beginning of the transaction throughout the life of the consumer. Once the industry recognizes and begins to apply these concepts, an entirely new business model emerges, which is both cheaper and more repetitive compared to the current “burn-and-churn, one-and-done” approach.

Borrower Collaboration is communication with only the Borrower.

True Borrower Collaboration should go one step further by creating collaboration, not just for the Lender but for Title, Real Estate Agents, and other service providers together. After all, that’s what the transaction is to the borrower. Because each party is involved with the transaction, a unified front of active communication is needed to truly engage the consumer and create the definition of Borrower Collaboration.

The old adage, “it’s much cheaper to keep a customer than get a new one,” now applies more than ever before. Here at Pavaso, we turn a mortgage into a lifetime electronic relationship where customers build loyalty to those who engage with them. As if it could get any better, this connection with Borrowers also reduces expenses, creates new revenue, produces fewer errors, features higher security, and allows for faster closings.