Both lenders and servicers realize that increasing efficiency is the surest path to reducing costs and improving profitability. With internal teams stretched thin, more companies are outsourcing business process to trusted third parties. This is not new, as originators and default servicers have always worked with these partners. What is new are the detailed scorecards vendor managers are using to reduce as much friction as possible.
When it comes to frictionless partnerships with lenders and servicers, Arch Mortgage Insurance Company (Arch MI) has emerged as an expert in the field. We caught up with Jim Jumpe, Executive Vice President and Chief Marketing Officer for Arch MI, and asked him about the best ways for lenders and servicers to increase efficiencies today.
Q: How important is the efficiency conversation to the companies you serve?
A: It’s vitally important, especially today. But our customers aren’t looking to Arch MI as a trusted partner to make them more efficient. They understand efficiency and they have optimized their systems and processes to deliver it.
They want to make sure that we don’t introduce friction that will slow them down. As a result, we’re sensitive to every touchpoint we have with our clients to ensure that every interaction they have with us, whether it’s direct or mediated through their technology during the loan manufacturing or servicing processes, is seamless, simple and satisfactory.
We’ve built the infrastructure required to deliver this. We also survey our customers to make sure we hit that mark. Their high satisfaction rate is telling us we do.
Q: Does quality come into that conversation?
A: Every time. Our customers’ priority is speed, but never at the sacrifice of the quality of risk assessment. Their systems will catch quality and compliance problems and stop the process. It is very costly to lenders to move backward at any stage of the process. We can’t have a discussion about efficiency without talking about the quality of underwriting decisions.
Q: What is the key to being a frictionless partner for originators and servicers?
A: For us, it comes down to having the right people and the right technology to deliver exactly what our customers need as soon as they need it.
For the origination process, it all starts with the mortgage insurance (MI) quote. Following our acquisition of United Guaranty earlier this year, Arch MI is now the only MI company to offer a dynamic, risk-based pricing solution. That’s Arch MI RateStar®. It's a very quick and easy way to go beyond the traditional mortgage rate sheet, a more contemporary way to price and qualify their borrower for an MI quote so they can get our most competitive rates.
This gives lenders a huge competitive advantage. Without this innovation, lenders are stuck offering borrowers MI priced along a broad credit profile, lumping them in with every other borrower in broad buckets regardless of their unique situation. We look at about 17 different borrower characteristics and then price every deal more precisely, allowing the lender to reward their borrower for good credit and a responsible financial history. We’re willing to participate in that good risk and provide a better price.
When the decision is made to use Arch MI, we offer ArchMIConnect®, our proprietary origination and servicing system. This one convenient technology delivers the commitment and the certificate of insurance. Our portal makes it easy to import the loan information from a DU® file, to check the status of the certificate and to get help all along the way.
On the servicing side, our commitment continues. We offer the people and the systems to deliver anything the servicer might need, whether filing a claim, paying premiums or checking the status of anything in process. We invest the resources and the training to ensure our people and our systems are the best.
The right technology goes a long way toward fulfilling our promise to help customers stay efficient, but ultimately it’s our people that set us apart. Ask anyone who has interacted with someone from Arch MI and they’ll tell you that the only thing that matters to us is being the best possible partner to the companies we serve.
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© 2017 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company, United Guaranty Residential Insurance Company and United Guaranty Mortgage Indemnity Company. Coverage is available through admitted company only. Arch MI RateStar and ArchMIConnect are registered marks of Arch Capital Group (U.S.), Inc. or its affiliates. DU is a registered mark of Fannie Mae.