Mortgage lenders of today need to be agile; not only do they face competition from the growing ranks of online lenders, but they also need to keep on top of the ever-evolving requirements of compliance and new regulations, battling a constantly changing barrage of additional steps, timed disclosures and testing requirements at every turn.
The good news is, origination technology is here that can handle all this change and keep mortgages flowing smoothly through the process.
But what should you look for in a solution? Do you want one that focuses on winning business? Or increasing productivity? Or pleasing your compliance stakeholders? Of course, the ideal solution meets the needs of all three.
A Complete Solution
Today’s borrowers are used to doing business in a world of instant results. They shop, book their vacations and even file their taxes online. With an online solution like MortgagebotPOS, for example, banks, credit unions and mortgage companies can capture applications from borrowers applying online at any time of the day or night, and further position themselves in their markets as convenient and service-focused.
As these loans work their way through the origination process, integrated back-end solutions like MortgagebotLOS, for example, let lenders improve productivity and responsiveness by alerting users of potential errors and red flags throughout the process, well before the loan closes.
Case in Point: Horizon Bank’s Story
One excellent example of the right way to leverage technology is Horizon Bank, a locally-owned community bank headquartered in Michigan City, Indiana. When Mortgage Business Analyst Joel Schaefer joined the institution in 2012, Horizon was at a crossroads.
“We were largely paper-based, and operating in a loan system that wasn’t compliant or efficient,” Schaefer explained. After an extensive search and a lengthy comparison process, Horizon Bank went with the D+H’s Mortgagebot platform, implementing its POS (point-of-sale) solution in 2010 and its LOS in 2013.
“We liked the fact that Mortgagebot was cloud-based. It gave our originators the flexibility to work securely from anywhere, and do it without carrying paper files out of the bank,” Schaefer said. “By choosing a SaaS solution, we no longer had to do system updates for new releases or compliance changes ourselves. All of that is handled for us.”
Choosing the Right Solution
If your institution is in the market for a solution that will serve as your roadmap through today’s challenging mortgage lending landscape, ask potential providers these questions:
>> Is your system configurable? The technology should adjust to fit your needs, instead of requiring you to change your operations to fit the technology.
>> Can you provide references? What do their customers have to say about agility, dependability, and industry knowledge?
>> Can it integrate with my existing systems? This is a “must have” in terms of transparency, efficiency and reduced margin of errors.
>> Do you offer cloud-based delivery options? A true SaaS “web-based” solution enables institutions to manage updates, without having to physically install the software or handle ongoing maintenance. For example, Mortgagebot solutions can be implemented in just 90 days or less.
Positioning for More Change to Come
No question — regulatory and compliance challenges have fundamentally changed how the mortgage lending industry operates, with no end in sight. A continuum of regulations, revised amendments and updated requirements looms on the horizon.
So, you need a vendor committed to helping mortgage lenders embrace the “new normal” through a SaaS-based solution, giving institutions customer-friendly access and automated compliance checkpoints throughout the workflow.
Modern financial institutions face challenges from all sides, but they don’t have to go it alone. With the right solution and a knowledgeable provider, you can regain your productivity, maintain compliance and get back to the business of making loans and serving your customers.
About The Author
Scott Hansen is the senior vice president of marketing, responsible for marketing, market development and alliance management at D+H. Prior to his current role, Hansen served as executive vice president of the integrated solutions group, which included some of the company’s fastest growing businesses, including, branch automation, electronic banking, enterprise content management and financial intelligence. Hansen initiated his career in the financial services industry with the Federal Home Loan Bank, and later held various positions with Clearwater, FL-based Pioneer Savings Bank. He graduated from the University of Michigan Business School.