Think of your business as a collection of interactions that take place before, during and after the
closing of a mortgage. By looking at it this way,
you can build a foundation for future sales that can
revolutionize your business.
Customer relationship management (CRM) software is more important than ever when considering
a growth plan for your mortgage business. With CRM
software, you can improve productivity, manage
leads, improve the customer experience and secure
the continued business of your existing clients.
The first CRM software was developed in 1995. In the
24 years since, the mortgage industry has changed
its approach to technology, regulation and more.
Twenty years ago, brokerages could charge far
more for each deal, make fewer monthly transactions, and still have a profitable business structure.
That is no longer the case. With competition higher
than ever, originators need to expand the ways
they approach clients and their needs.
To do this, originators need a consistent form of
communication that can drive customer engagement. This is where the value of CRM comes in.
Thanks to the rise of the digital age, companies can
now streamline their connections to customers in
Thanks to CRM, it has become painless for lenders
in the deposit business — such as banks and credit
unions — to cross-sell and upsell their products and
services. While cross-selling was simpler in the past
(when people visited branches), CRM software has
opened up a whole new world of opportunities.
With CRM, a company can focus on the client
experience and their business’ profitability. To truly
understand how CRM technology has helped the
mortgage industry, however, you need to understand the ultimate goal of the software: the client
Keep in touch
Although technology in the mortgage industry has
changed, it’s interesting to look back and recognize
a fundamental principle that remains true. If you
want to support clients for life, you need to stay in
touch with them.
Look at the results of a study by Continuity
Programs completed 20 years ago, which measured
the rate at which customers chose a different originator when they returned to the mortgage market.
As part of this study, 5,000 surveys from randomly
selected borrowers were used to gauge how mortgage originators managed to retain, or not retain,
Six months after closing, 14 percent of the new
mortgage customers could not remember their loan
originator’s name. After 12 months, 28 percent could
not remember the name of their originator. After
24 months, 67 percent of borrowers had forgotten their originator’s name.
Now consider this: Three years after closing, the
majority of the 5,000 people surveyed had either
refinanced (2, 117) or made another real estate purchase (714). That’s 2,831 new transactions. Yet only
947 of those borrowers used the original originator. That means 1,884, or about 38 percent of the
clients surveyed, found a different lender for their
This is a huge area where mortgage CRM technology can help. Since people tend to remember
companies that they’re actively receiving value
from, it’s important to make sure contact with a
customer never goes stale.
A CRM can segment your list of contacts by type
(such as prospects, past customers, referral partners).
This will allow you to streamline customer communications, send the right message at the right time and
encourage future transactions.
Kirk King is president of Continuity
Programs Inc. and past president of the
Michigan Mortgage Lenders Association,
Southeast Chapter. Continuity Programs
helps residential lenders grow with easy-to-use
customer relationship management (CRM) software.
Originators gain efficiency and generate leads with
automated marketing based on Continuity’s 45-plus
years of experience. MyCRMDashboard, also known as
MGIC Elements, is the company’s mortgage CRM.
To learn more about Continuity Programs, visit
Reach King at email@example.com.
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