Mortgage originators can close more business by being more efficient in their processes so they can be
For example on an Internet lead waiting just 10 minutes after the lead comes in before contacting the applicant, your chance of getting converting the lead decreases five times compared with the competition says Tim Armbruster, who at the time of the interview was an executive with ClosingCorp.
Lenders need to streamline processes, not just from lead to application, but also in the time it takes from the borrower filling out the application until the initial disclosure is made.
"We know the
Being able to do this will help to reduce costs as well as close more loans because of the improved service, he says.
Studies have shown loan officers can spend up to 30 minutes on preparing a GFE. ClosingCorp can get that down to one minute, Armbruster said.
This is because borrowers are going to multiple lenders to get a GFE, so the same logic about responding to the lead first applies here as well; the quicker the borrower gets your GFE, the more likely they are to use your services.
Originators can benefit by being more accurate in the estimates which they provide the borrower upfront. Inaccuracies contributes to customer satisfaction issues, which in turn cuts down on the amount of repeat and referral business received, Armbruster says.
The switch to a purchase market makes the need to be accurate even more important. Reputation is one key reason that consumers pick their lender.
If the consumer has a bad experience, a significant number will tell their friends and relatives not to use a particular lender, he notes.
A reason for customer disatisfaction is the use of multiple technology systems at one institution. Executives at Wipro Gallagher Solutions believe there will be consolidation of systems not only in the mortgage unit, but for the larger companies across the entire enterprise.
"There are significant benefits, not just from a financial perspective. It boils down to maintaining rule sets," explains Teresa Blake, who is a practice director at Wipro Gallagher.
Rather than having the same rules on multiple platform, having everything centralized on a common system eases the compliance function as well as makes it easier to add new products.
"Every bank in the market today is going through three different flavors of transformation," says Narayan Bharadwaj, general manager and business head at Wipro Gallagher Solutions.
"At the first level is the economic transformation, which is capital efficiency and finding pockets of revenue growth. On the second level is the business model transformation," including the development of new delivery channels and products.
Then there is the cultural transformation, balancing the different interests of various demographic groups.
"Until you have a single customer view, you cannot optimally tap into online and mobile channels," Bharadwaj says. Lenders will have patchwork solutions if they are still using different systems in the enterprise.
Wipro Gallagher clients are using the system to originate multiple kinds of products, including credit cards and consumer loans.
