Superior technology is becoming a critical factor in the banks` battle for home loan market share, says Comcorp Online MD Richard Moss.
Consumers are increasingly expecting mortgage originators and loan consultants to be able to deliver "instant" answers on home loan or pre-approval applications.
Comcorp Online is an application service provider focused on the real estate industry.
He adds that almost one-third of the home loan business generated by mortgage originators is now going to banks with electronic "back offices" capable of instantaneous application processing.
"In fact, although fully electronic home loan application processing became possible in SA just five months ago, more than 500 applications a month, worth more than R100 million, are already being handled in this way via Comcorp Online`s platform. This is to the advantage of those banks which have embraced the necessary technology."
Comcorp Online`s Internet-based transaction management platform links originators, banks, estate agencies and conveyancers, and Moss says its figures are based on more than 5 000 applications submitted via its system since February.
"Our system enables a loan consultant to capture a potential borrower`s application information on screen and, using the Internet, transmit this directly to a bank for approval. The bank can then use the same platform to transmit its response -- straight back to the consultant`s computer screen.
"And, in cases where the bank has the capacity to process the application electronically, the interval between application and approval-in-principle is reduced from days and even weeks to just a few minutes, giving the prospective home buyer considerable relief from the anxiety about being able to obtain financing.
"The system also facilitates shorter transfer times, to the benefit of all in the property sale chain, including the seller whose proceeds are available sooner, the agent whose commission is payable on registration -- and the lender able to achieve faster initiation of home loan repayments."
Share
