What does it mean to be tech-savvy? And can lenders afford to invest in technology now anyway? Actually, the better question is: Can lenders afford not to invest in technology? In this market it’s all about efficiency and the way to be efficient is to utilize technology. So, if lenders aren’t tech savvy, they better be soon.
Certainly mainstays like Quicken Loans, which still holds the slot as the No. 1 Online Retail Lender, would be considered tech savvy. And given market conditions, more specifically the decline of wholesale, online retail is sure to be an up-and-coming channel.
But do lenders get the value of online retail really? “Many lenders get the value,” answered Todd Lunsford, chief marketing officer at Quicken Loans. “It’s just hard to do what we do. Just generating leads is a challenge. Then you have to create a website that appeals to the borrower, and add onto that the ability to measure results, and add all the transparency needed, it’s hard. There are barriers to entry for sure.
“We launched Quizzle. It was developed for people looking for ways to manage their finances, even outside of their mortgage. It’s a financial management tool. We provide free features like credit reports every six months and an interface to AVMs so the borrower can see what their home is worth. We’re partnering with other companies now to add more features. This is a whole new level of client service that we’re integrating into our process.”
In addition, to the usual leaders, experienced executives from failed lenders are re-entering the space, this time with technology in mind. Take for example, the creation of StoneWater Mortgage, manned by former First Magnus execs.
In the most recent edition of Mortgage technology magazine, which can be downloaded for free
“This turned out to be a good thing for us. We were able to attract good talent and we had the software developers onboard that really understood the business. The difference today is having the opportunity to sit back and plan for the future now, we can see the market conditions, and we can say, OK, here’s the best way to get at the best mousetrap’.”
And as it turns out StoneWater did build its own LOS, but is choosing this time around to also integrate with best-of-breed technology players instead of building everything in house. “We looked in the market to see if we were comfortable plugging into various providers. We also didn’t have to have a lot of IT guys going this routed,” noted Mr. Young.
StoneWater sees this market as an opportunity to start fresh and utilize technology to the fullest. “Our main focus this time around is on creating efficiencies within our mortgage platform. We want to benefit our customers. We want to pass efficiencies on to the broker. It’s important for us to be efficient to keep costs down and provide the highest level of service. The one thing that’s critical is not just to outsource, but we really had an opportunity to take advantage of the vendors’ offerings. We had blue sky to start with.”
So, it seems like the executives at StoneWater have evolved to the point where they’re open to using the best the market has to offer this time around. Being willing to start fresh in this market and invest heavily in technology is a differentiator for StoneWater and others that are daring enough to get back in the mortgage game.
Surely companies like Quicken Loans and StoneWater Mortgage deserve to be called tech-savvy. In the August edition of Mortgage Technology magazine we’ll name our Top 25 Tech-Savvy Lenders. Who do you think should be on the list? Speak your mind here, prove your case and check out our list to see who makes the cut this year.
