Mortgage banks are finding that their use of technology is one of the most important tools that affects every facet of their business. An online presence extends marketing reach, loan origination technology ensures customers get their loans underwritten and closed as quickly as possible, and system wide accounting and communication tools allow the main office to facilitate efficiency and cost saving strategies on the branch level, all while keeping an eye on the bottom line.
Mortgage banks don’t just compete against each other for customers and market share, they also compete for talent. When looking to expand, these firms are looking for the most talented and experienced professionals. Many times the technology makes the difference in a new manager’s decision to work with one lender over another.
David Zugheri, president of Envoy Mortgage, Houston, described his firm’s operation like a central hub, with more than 100 branch spokes shooting out to 30 states, each staffed by anywhere from a handful of employees to a shop in Minnesota with as many as 40.
“When you lift the hood of a good solid mortgage banking operation, you find 75% of the heavy lifting is done by the central office, the things that have nothing to do with manufacturing loans, or selling or anything else,” he said. “We run checks on branches in the field, while the branches in the field provide a sales arm into the marketplace.”
As Envoy has grown, so, too, has its technology needs. In the past, it would rely on paper processes to communicate and track business on the branch level, with each location using its own disparate system. “You printed everything out and punched holes in it, put it in a nice folder and overnight mailed it.”
But those days are long over. In the mid-2000s, Envoy took steps to implement new technology, including an LOS and accounting software that was integrated across all branch locations and the company’s three mortgage processing centers in Houston, Atlanta and California. The arrangement lets the corporate office track activity across all branches, handle accounting and human resources demands and makes sure each office is in compliance with federal and local rules.
“We have some locations like in the D.C. area, where it’s standard practice to be licensed in Maryland, Virginia and D.C. Managing all of that from the home office five or six years ago was impossible; you couldn’t do it effectively,” Zugheri said. “Now with everyone drawing from the same LOS, built into it is that our loan officers can’t originate in states where they’re not licensed.”
Another lender, Greenwood Village, Colo.-based Cherry Creek Mortgage, which operates branches in 12 states, went on an aggressive growth path, which began with building an in-house customer relationship management software and LOS through its sister company, Blueberry Systems.
“In the past you’d have a robust origination system, but it was difficult to have everyone involved connected in real time. You needed a third-party tool to sync everything overnight,” said Gary Windfield, vice president of marketing at Cherry Creek. “This gave us the opportunity to have all information about a loan available—from pricing, credit, underwriting and closing—so you can communicate in real time, the way your customers want to be communicated with.”
Zugheri added, “When you’re out recruiting, the technology is a selling point.”
