The economic fallout due to the COVID-19 crisis has been disastrous and is likely to continue for the foreseeable future. With millions out of work and businesses shut down, people have had to rethink the way they spend and budget for the future. Unfortunately, it may take years for the economy to fully recover.
However, some economic effects of the pandemic aren’t altogether negative. Many homeowners have been able to refinance their mortgage and enjoy lower rates. That’s why there’s been a surge in mortgage refinances recently. Let’s take a closer look at why COVID-19 has caused this surge and how an AI-powered tool like Alanna can help title companies tackle the uptick in business.
Mortgage Refinancing on the Rise
The first full week of March saw a massive increase in mortgage refinance applications. These were the highest refinancing numbers seen since April of 2009. The surge was a direct result of the sharp drop in mortgage rates during the preceding weeks caused by market concerns over COVID-19. With many homeowners on unemployment and unsure about the stability of the economy, this is the perfect time to refinance and take advantage of lower rates. Lenders are scrambling to facilitate the jump in demand, meaning title companies are also seeing an increase in workload. To make things easier on their clients and staff, an AI-powered virtual closing assistant can be an invaluable title company resource.
Facilitate Seamless Communication
When a mortgage refinance takes place, a title company and lender need to be in direct communication. For example, the lender may want a title search performed to ensure a judgment hasn’t been filed against the homeowner. A title company may also be responsible for distributing funds and providing new title insurance. This means all parties involved in the refinance need to be able to connect with a title company quickly and easily. With a virtual closing assistant like Alanna in place, a title company’s clients can communicate with them without having to pick up the phone. By chatting with Alanna, they can get answers to questions and receive information tied to the mortgage refinance. This real-time information can be attained 24/7 via laptop, tablet, or smartphone.
Access to Secure Documents
In addition to helping the communication process, Alanna can provide access to secure documents to lenders or homeowners. This is a great time saver and eliminates the need for title agents to manually email or fax sensitive paperwork. All the client needs to do is request access to documents from Alanna. With the right permissions, they can download the material directly from the virtual closing assistant. They can also send secure documents via Alanna and have the peace of mind they’ll remain safe and secure. By using this title company resource, agents can concentrate on complicated tasks instead of repetitive ones, and clients can get the materials they need, whenever they need it.
Integrate AI Into Your Operation
If your title company is feeling the pressure due to the rise in mortgage refinances, consider adding an AI-powered virtual closing assistant to your arsenal of tools. This title company resource will help streamline day-to-day work and provide a better customer experience.
Alanna.ai develops flexible AI-powered software for the title industry. To learn more, request a demo today.