A new self-service option from mortgage lender Beeline could mean loan officers are one step closer to extinction.
For years, we’ve heard that mortgage loan officers were at risk of being replaced by automation.
And now it appears we’re getting closer to that reality, at least on straightforward loan scenarios that borrowers can manage on their own.
The new initiative allows borrowers to complete more steps of the loan process independently within the platform, including exploring loan scenarios, locking rates, and submitting documentation.
You start to see a path where savvy borrowers will be able to do much if not everything themselves, assuming the technology allows it.
Beeline Lets Home Buyers Get a Mortgage without a Loan Officer
Beeline customers will now be able to choose the “Self-Service Mortgage Experience” when applying for a home loan with the company.
It’s the first phase in a wider rollout by the digital mortgage platform designed to streamline the loan process “while reducing unnecessary friction in the borrower experience.”
In other words, getting rid of humans!
Okay, maybe that’s a bit of a stretch, but it sure seems to be heading in that direction, a promise we’ve heard for years now.
Customers will be able to fill out a loan application on their own, explore various loan scenarios (e.g. different down payments and loan types), and even lock their mortgage rate without assistance.
In addition, they can sign disclosures, submit loan documents to satisfy outstanding conditions, and pay for the appraisal.
If and when they have mortgage questions, they don’t need to reach out to a human loan officer or loan processor.
Instead, they can turn to Beeline’s proprietary digital assistant named “Bob,” who can answer any pressing questions in real time.
Once borrowers complete the company’s proprietary point-of-sale mortgage application, they’ll see the option to select the Self-Service pathway.
This will direct them to their own personalized “loan tracker” powered by Beeline’s AI-driven platform that processes application data in mere seconds and presents customized loan options.
Customers will be able to “move through key early steps of the mortgage process 24 hours a day,” without the need to speak to a loan officer unless they want to.
So if you’re a loan officer reading this, take note. The automation of mortgages is getting more real by the day.
And you can start to envision a customer simply going about the process on their own, cutting out what could soon be the middleman.
Beeline says the new feature was “designed with the modern homebuyer in mind,” namely Millennials and Gen-Z borrowers who expect a digital-first experience.
And are often not interested in speaking with a human (or afraid to!).
Will This New Technology Make Mortgages Cheaper?
The big question is will this sort of automation result in lower mortgage rates and reduced closing costs for borrowers?
It certainly should if there are fewer hands touching each loan.
Loan officers earn sizable commissions for assisting borrowers on their loans, often earning 1% or more of the loan amount.
For example, if the loan origination fee is 1.5% on a $500,000 loan amount, we’re talking $7,500.
If borrowers can apply for a home loan on their own without a loan officer, or even a loan processor, and even mortgage underwriters to some degree, one could argue that it should be cheaper to get a mortgage.
The thing is many mortgage customers are first-time home buyers who have never applied for a loan before.
They’ve never navigated the process and it’s a major purchase they might not feel comfortable going alone.
That could be the saving grace for humans, who provide peace of mind in these big moments.
Humans are also notoriously bad at completing the many tasks required to get to the finish line.
The joke is that you need a loan officer to badger them to satisfy their conditions, sign paperwork, and so on.
Without the constant prodding, many would never make it to closing.
But if this becomes more commonplace, you can see a path where more homeowners go it alone, especially on refinance applications where the customer has more experience and fewer deadlines.
(photo: Saundra Castaneda)
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.