on overstated estimates, dedicated
data and technology providers can instantly generate accurate rates, which
should reduce tolerance violations.
Many businesses today apply a
large percentage of their resources
to the upkeep of new regulations.
Instead of taking this resource-inten-sive approach, companies should
partner with a vendor who focuses exclusively on compliance and ensures
that guidelines and regulations are
met by providing support and expert
technology. By now, mortgage companies should know that not investing
in technology is actually more costly.
This year, there likely will be more
movement toward enlisting compliance technology for cost reduction.
New technology required
Solutions that help companies improve business efficiency will become
increasingly important this year. Documentation retention is a growing trend,
and a vendor that can address the
management and storage challenges
will increase its market share. additionally, companies should look for paperless systems to reduce expenses
related to printing and mailing.
Technology also can enhance
workflow capabilities and aid op-
erational efficiencies. The increased
workload required to close each loan,
combined with a lack of resources,
translates into increased salary ex-
penses. a Web-based workflow solu-
tion to manage processes will prove
more cost-effective than hiring addi-
tional full-time employees.
Going directly to consumers
This year, a growing number of mortgage companies will reach out directly to consumers via the Internet,
as it has become the primary source
for research about purchasing and
refinancing options. Companies can
use this reality to their advantage and
attract business through front-facing
consumer websites as well as marketing efforts. For example, some companies offer calculators on their online
banking pages to entice homeowners
to inquire about refinancing.
although the industry’s improvements are a work in progress, positive changes cannot be made without
investing resources, time and training
to implement better approaches and
progressive technology. Leveraging the
expertise of specialized vendors that
offer customizable, scalable technology to resolve the most pressing business concerns is a good place to begin.
By finding integrated solutions that
address the most pressing regulatory
and industry issues, a company can
position itself to manage necessary
system changes down the road and
experience more success in its busi-
ness processes. •
Good technology can help and cut
costs at the same time.
« SEAMLESS continued from page 40
2. Eliminate repurchasing
For originators operating in multiple
states, the variety of local and state
laws driven by new disclosures present a complex closing process that
makes it difficult to remain compliant
in originating saleable loans.
Success requires a robust business-rules engine paired with a strong integration with vendor partners, like
quality control, fraud detection and
compliance. Originators must adopt
a “data is king” mentality throughout
to understand the specifications that
produce quality loans.
a universal data model makes this
possible. Simply having a final set of
data isn’t good enough. Originators
must understand data transparency
and how the underlying data changes.
It’s not hard to imagine a property starting out as a single-family residence
that is determined to actually be in a
planned-unit development. Or perhaps
a loan that is priced upfront with a high
credit score (above 760) because that
was the implication the loan officer received from the borrower, but when the
credit report was pulled, the borrower’s
score was actually 679. In both cases,
the loan could dramatically re-price,
and if not determined when it happens,
it can cost real money.
Originators should employ a total
quality-management approach when
evaluating their systems based on
the quality of their closed loans. Loan
officers not only need a blueprint for
success, but must remain vigilant in
vetting the specifications they have
in place to ensure that what was built
matches the original requirements.
3. Improve experience
The mortgage industry exists in a
sterner regulatory environment today,
characterized by more required confirmation steps within loan production. Many may view this negatively,
but savvy originators will recognize
that it presents an ideal customer-ser-vice opportunity with more borrower
With the right system, originators
can maximize this opportunity for increased borrower contact and position themselves to create a better experience for their borrowers. This increases the odds of loans closing and
Ultimately, originators’ success depends on how consistently they maintain data integrity and transparency
in producing high-quality, compliant,
saleable loans with excellent customer service. Whether they achieve
this through better workflow technology — or more running shoes and
printer paper — will define their level
of competitiveness in the market. •
Bridgeview Bank Mortgage in Illinois Built for and by Top Producers
Erik J. McLaughlin
RVP of Sales
Call or e-mail us to learn more
on how you can join a sales-driven
mortgage company built for and by
Top Performing Originators.