experience. Lenders should also attempt to provide multiple communication channels, based on your preferences and other situational requirements.
that prioritizes the ease of requests for draws, payoffs, or information through an online portal and helps to onboard new clients into their systems at the time of their funding.
collecting and acting on this feedback shows borrowers their opinions are valued and their relationship with the lender is taken seriously. In 2024, outstanding customer service from a lender is characterized by personalized communication, transparency, speed, proactive problem- solving, technological integration, and a commitment to continuous improvement. Lenders who excel in these areas not only meet the expectations of today’s borrowers but also build lasting relationships based on trust and satisfaction. As the real estate market continues to evolve, the importance of exceptional customer service will only grow, making it a crucial differentiator when choosing your lending partner.
TRANSPARENCY AND EDUCATION
IN-HOUSE SERVICING AND FUND CONTROL
Transparency in the lending process is non-negotiable. Clients demand clear, honest information about loan terms, interest rates, fees, and the overall lending process. Lenders who provide easy-to-understand explanations and break down complex financial jargon into simple terms build trust and confidence. Borrowers should look for lenders offering educational resources such as webinars, guides, and FAQs that can empower borrowers to make informed decisions. SPEED AND EFFICIENCY In the fast-moving modern world, speed is crucial. The rise of AI technology and the proliferation of more mundane systems within the industry have set high standards for fast and efficient service. Lenders should be leveraging digital tools to streamline the loan application and approval process. Automated underwriting systems, online document submission, and real- time status updates can significantly improve transparency and speed of execution within the funding process. TECHNOLOGY Along with speed, the integration of technology throughout the client relationship is a hallmark of outstanding customer service. Investors should look for lenders who prioritize using technology to highlight the status of a loan, whether during the loan process or after funding. For loans that have a construction component, borrowers should look for a lender
With more relationships and services than ever being outsourced to third parties, real estate investors should prioritize lenders with in-house servicing and fund control to ensure a streamlined handoff from funding. Keep in mind the context of your loan across departments (and, even more importantly, across your portfolio) as maturity is approaching or budgets get tight. This structure has grown uniquely in the current hard money lending environment, where many lenders outsource these critical functions, often leading to fragmented service and increased risks for the borrower. By choosing a lender with in-house servicing and draws, investors gain a reliable partner who can offer more personalized and immediate responses to their needs, ultimately enhancing their investment portfolio’s success.
NICHOLAS FROMAN
Nicholas Froman is the senior vice president of Innovation at Center Street Lending, a premier private lender in the hard money space. Center Street Lending focuses on bringing white- glove customer service and excellent experiences to the lending market. Froman brings more than years of experience in the technology and strategic consulting sector to the rapidly growing Center Street Lending team, helping to create and improve systems that streamline loan processing and enhance client experience. By focusing on client feedback and internal operational efficiency, Froman aims to position Center Street Lending at the forefront of innovation in private lending.
FEEDBACK AND CONTINUOUS IMPROVEMENT
As the final step in the lending pipeline, outstanding customer
service involves actively seeking out and acting on borrower feedback. Lenders should implement regular surveys and feedback mechanisms to understand borrower experiences and identify areas for improvement. These could come in the form of post- funding/payoff CSATS or in-person borrower feedback studies. Regardless,
demonstrating a commitment to continuous improvement by
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