Scotsman Guide - January 2012 Residential Edition

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 touch points.

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 getting referrals.

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. •