You hear a lot of horror stories about failed implementations, vendors not meeting expectations, false advertising, etc. For these reasons, when choosing a vendor it's important to choose a partner that is aligned with your business strategy. Remember, vendor selection shouldn't be a popularity contest.
You don't want to go with a popular vendor just because they've been around since before the light bulb and have huge market share, but can't get you where you want to be in terms of embracing new technology that will prepare you for the future. On the other side of the coin you don't want the newest vendor to the neighborhood either because they just came out with this slick new system. It's about striking a happy medium with someone you can trust.
In talking with Phil Candela, operations manager at Warren Bank, he talked about researching three companies before settling on his LOS. "The product is sound and I get an immediate response from them. We've had the system since we opened our doors two years ago.
"Just this year our attorney wanted some wording added to our docs, which I didn't think could be done," noted Mr. Candela. "I posed the question to my LOS vendor and got an answer within 30 minutes. There's always somebody there and they get back to us quickly. They're a good partner."
Similarly, John Davis, president at Citizen's Mortgage, also told me about the importance of picking a sound technology partner. "We knew that we had to make a quantum shift in technology. We boiled our search down to three companies that we boiled down to two. We like our vendor's size, accessibility, their history in the industry in that they are mortgage people first and technologists second.
"More importantly though, as we have evolved our vendor has been quick on their feet in making the changes to evolve with us. Their accessibility and responsiveness has been great," reported Mr. Davis. "Five years with the same LOS would be a long-term relationship. We went into this thinking that if we stick with it for three years we'd have made our money back.
"When I have strategy talks they're honest. They have met every threshold, which we didn't see with our prior vendor. Quite frankly, the prior vendor overstretched and did not meet the benchmarks and goals that we set up together. I'm comfortable that we'll be with this new vendor for at least three years, but I'm optimistic it will last longer."
This industry is facing very tough times. Technology will be a differentiator that helps some lenders stand out and move forward. Why choose poorly and go with the most popular kid in class simply because they have the most clients/followers, or the new kid just because they're new and different, when you can go with a friend and partner? PLEASE LEAVE YOUR COMMENTS BELOW. JOIN THE CONVERSATION. ALSO, BE SURE TO VISIT TECH NICHES REGULARLY AS IT WILL BE UPDATED EVERY TUESDAY WITH A NEW ENTRY. LET'S TALK ABOUT WHAT REALLY MATTERS PERTAINING TO MORTGAGE TECHNOLOGY.
