Why do all mortgage brokers offer such terrible service?

It is not the service, it is the mortgage process which is broken at its core. The process is broken because of one single step, “Underwriting”. This stage of the process is where a human (the underwriter) looks at your supporting documents (pay stubs, assets etc) and confirms your ability to pay for, say the next 30 years.

The “underwriting” stage in the mortgage process is often the main reason why mortgage companies offer services that are not satisfactory. Many aspects of the mortgage process are now automated, largely with the advent of emerging technologies like artificial intelligence and machine learning. Nevertheless, humans cannot be totally eliminated from the mortgage process; and, humans have emotions.

Like every human, they could be nervous. This is because it is risky, as they are placing a bet on a borrower’s ability to repay a loan. Also, the borrower is nervous because the deal could fall through. So there are a lot of emotions riding on this step alone.

Can this process be fixed by tech?

Yes. Peer-to-Peer lending companies like SoFi are working on simplifying the whole process to eliminate the usual challenges that both borrowers and underwriters face.

Will it be fixed?

Well, maybe not soon. It requires a huge capital to issue loans, and it is hard to have access to huge capitals if there are no government backings.

So regardless of all these startups and established companies like Quicken trying to “Rocket” your app or use blockchain or “insert your own tech term”, it is still a marketing ploy to fool the borrower into a process that may or may not fall apart.

Check out our free mortgage shopping tools at https://www.parlend.com

This question was initially answered in Quora by our co-founder and mortgage ninja Kevin. View in Quora

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