New iPad app enables mobile loan apps
Since the introduction of the first iPad in 2010 – and the tablet craze that followed since – the idea that loan officers and brokers might one day have the ability to take mortgage applications with mobile technology is a very promising concept. But he’s also mired in the belief that the widespread use of tablets is a distant development for an industry notoriously slow to embrace new innovations.
Now, on the heels of Apple’s much-anticipated third-generation iPad release, an Austin, Texas-based mortgage tech newcomer believes the impending launch of its iPad app will be the catalyst for the move. adoption of tablets by loan originators.
The MobileLO app for iPad is a point-of-sale application that allows loan officers and brokers to enter the data fields of a Uniform Home Loan Application (Form 1003), generate a good faith estimate, and ‘other federal and state-specific information documents, pull the credit report and collect electronic signatures.
App developer On The Go Technology has submitted the app for approval and expects it to hit Apple’s App Store next week, according to company owner Andrew WeissMalik. With the free download and registration of the app, users can generate Form 1003 and export the information to a Fannie Mae 3.2 data file.
“We want market share. It’s not about squeezing every penny possible from every designer,” WeissMalik said. “We want the app of the future and right now we’re giving it away.”
On The Go Technology will also be offering a $ 29.95 per month subscription for premium services, which includes disclosures, electronic signature capability, and integration with 50 different credit report providers. Compliance checks and disclosure documents are provided through a partnership with provider International Document Services in Draper, Utah. The monthly subscription includes unlimited disclosure sets and credit draws, but the user is still responsible for paying the credit report.
In a demonstration of MobileLO, WeissMalik showed Mortgage technology how the app works. The 10 sections of the 1003 are divided into individual tabs, including loan type, borrower information, employment, and income and expenses. To avoid having to scroll up and down a particular section, boxes that require additional information (like address fields) expand and collapse with the push of a button. The GFE is divided into two tabs, one for the loan summary and important dates, another for the fee sheet. There is also a quick app feature to collect the basic data needed to get a borrower’s credit and follow up afterwards.
Borrowers use their finger to electronically sign disclosures and acknowledgments. Once the signature is captured and saved, it is integrated into the documents.
“You actually take an app on the device, you draw credit immediately and there, and then you can browse it with your finger,” WeissMalik said. “It is the most pleasant feeling to make a mortgage on a tablet.”
WeissMalik, COO of Austin-based wholesale lender 360 Mortgage Group, started On The Go Technology as a separate business last year after a friend’s experience with another mortgage lender.
As WeissMalik explains, the friend responded to an ad from the lender that offered competitive refinance mortgage rates. The friend wanted WeissMalik to compare his quote with other options.
“I told him to send me the estimate in good faith and I would see if he got a good deal,” WeissMalik said. “When he sent it to me, it was handwritten yellow carbon paper.”
Surprised, WeissMalik asked his friend how the application process was handled. The friend explained that the loan officer came to his house with a notepad and a carbon paper mortgage application. The request, including the GFE, was handwritten. When finished, the loan officer gave him the carbon copy.
“After he told me that, I thought there had to be a better solution,” WeissMalik said. “The fact that in 2011 this continues is just plain insane to me. This whole model is being replaced by an iPad.”
For the myriad of loan origination systems accessible through web browsers, tablet accessibility is built in. a browser interface optimized for mobile devices.
In other cases, mobile apps have been developed for consumers to compare quotes and check the status of pending loans, such as the apps recently launched by Zillow, Quicken Loans, and Insight Lending Solutions.
But developing a mobile POS app is a more attractive prospect for tablet users, WeissMalik said.
“There’s nothing sexy about a web page. Using an iPad is fun. It’s cool, unique and innovative,” he said. “Using a web page is like browsing the web with a mouse and keyboard, but with your finger. There is nothing special or interesting about it. “
Another advantage of the app is that it is LOS independent and not intended to serve as a lender’s back-end LOS to process and subscribe files. The Fannie 3.2 file format is the de facto industry standard for 1003 electronic forms and can be imported into virtually any LOS or other lender technology. Even with desktop point of sale applications, loan officers export a Fannie 3.2 file which is then imported into the LOS to support back office staff.
“The idea behind it is that this is a point of sale system,” WeissMalik said. “Whether I’m a broker or a banker, I take this point of sale application and import it into my processing system. “
WeissMalik said the app could potentially replace the creators of point-of-sale systems currently used on desktops and laptops and run exclusively on tablets. He added that plans for future versions of the app will allow pipeline synchronization between the app and the lender’s LOS, creating a seamless integration between MobileLO and the LOS and eliminating the need to export the Fannie 3.2 file.
Of course, with many LOS vendors also providing point-of-sale software, it remains to be seen whether these vendors will partner with On The Go technology to create integrations with the app, as it has the potential to replace. their offer.
“It’s an ambitious goal because there is a lot to support, but we have the right programming talent to do it,” WeissMalik said.
Developing the point of sale as a dedicated application, as opposed to building a mobile-optimized website, allows users to collect borrower information without the need for an internet connection or a wireless data service.
Offline functionality is important because many users buy tablets without 3G or 4G support and for security reasons many companies do not allow their employees to use corporate apps over cellular data connections. “We didn’t want the internet to be a barrier to using our app,” WeissMalik said.
WeissMalik said security is a major concern for On The Go technology and credit report providers that integrate with the app.
“I was surprised at how incredibly focused they were on safety,” he said. “It was reassuring because it means that our security model is tested time and time again with each of these vendors.”
The app uses encrypted connections to transfer data and its security certificate is built into the device, preventing hackers from impersonating a connection. The borrower’s data stored on the iPad is also encrypted. Also, disclosure and credit documents are not saved on the device.
“All of these documents only exist for the duration of the session, which means that as soon as you click outside of those documents, they are deleted from the device,” WeissMalik said. “If someone hacked into the device, they couldn’t go through the Internet cache and try to find the Adobe credit report document.”
Finally, WeissMalik will recommend users to enable password protection on their iPads.
“If you’re worried about someone stealing your iPad and gaining access to your data, my answer is very simple; Apple provides it, built into the framework, you can enable password protection on the device, ”he said. “No one can enter without this password.”
On The Go Technology also offers enterprise versions of the app, which will be personalized, private label versions of the app that lenders can deploy in their organizations. Additionally, future releases will include product integration and pricing engines.