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Integration Furthers Adoption Of eSigning

Black Knight Financial Service’s LoanSphere Empower loan origination system (LOS) and LoanSphere Expedite Portal will be integrated with Solex, a mobile-capable e-sign solution designed to support digital mortgage capabilities. Solex is delivered by Docutech, a provider of compliance and document technology solutions for mortgage, home equity and consumer lending. The integration with Empower and the suite of e-mortgage solutions available in the Expedite Portal provides users with a more flexible and convenient electronic closing experience.

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“Docutech is dedicated to providing lenders with an easy-to-use, comprehensive e-sign process that will enable them to manage their document needs more efficiently while maintaining the highest level of compliance and showing their customers a more modernized loan experience,” said Ty Jenkins, CEO of Docutech. “Given the high volume of lenders utilizing Black Knight’s services, these integrations will bring the mortgage industry one step closer to electronic mortgage processes becoming more widely adopted.”

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Utilized by six of the top 20 lenders in the U.S., Empower is available as both an ASP- and lender-hosted loan origination system that supports retail, consumer direct and wholesale channels and helps lenders electronically capture, process and close loans. This integration is also available with Empower Now!, a version of the LOS,  that helps mid-market lenders reap the benefits of the powerful Empower LOS, with a greatly streamlined implementation process, resulting in reduced timelines and cost.

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The Solex e-sign integration with Empower offers an interface to ConformX, Docutech’s powerful document generation engine, enabling lenders to generate dynamic documents by auto-populating data stored in the LOS. Lenders can then access and administer Solex’s e-sign functionalities directly in the platform to support an accessible, streamlined electronic closing process.

The Expedite Portal is an integrated document collaboration and distribution service that facilitates the secure management, delivery and signature of electronic mortgage documents. The integration of Solex will give joint customers of Black Knight and Docutech access to Solex’s capabilities within the Black Knight platforms, enabling lenders to maintain a seamless document workflow, while providing borrowers with an intuitive e-sign experience that can easily be completed from any device, anywhere, at any time.

“By integrating both Empower and the Expedite Portal with Docutech’s Solex e-sign solution, we are further delivering on the digitized loan process consumers want,” said Jerry Halbrook, president of Black Knight Origination Technologies and Enterprise Business Intelligence. “Together, Black Knight and Docutech are committed to offering innovative lending solutions that facilitate an easier, more convenient loan process for both lenders and consumers.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Small And Midtier Lenders Get Another LOS Option

Black Knight Financial Services made headlines last week with a new program geared to give small and midtier lenders a new LOS option. In my conversation with Black Knight they wanted to clarify some incorrect reporting that happened elsewhere indicating that they are offering a new LOS to small and midtier lenders. Black Knight believes that this new strategy will be even more impactful. Here’s the details:

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Black Knight is offering LoanSphere Empower Now!, a version of Empower, the company’s LOS that will enable regional and mid-market lenders, as well as independent mortgage bankers, to reap the benefits of the full Empower LOS with a greatly streamlined implementation process, resulting in reduced timelines and cost.

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“The program that we’ve created is a way to bring the power of Empower to the midtier and small lender market,” said Jerry Halbrook, president of Black Knight’s Origination Technologies division. “We preconfigured Empower based on best practices for small and midtier lenders so we can offer it at a better price point. We’ve been testing this with several clients and we are ready to take it to market.”

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Empower Now! enables lenders to implement Empower functionality, which has been configured based on the industry’s most common lending practices. Lenders can then add configurations and additional feature functionality, which will allow them to remain on the same system as their business grows, and to adjust system parameters to meet their specific compliance needs.

Additionally, Empower Now! is seamlessly integrated with Black Knight’s LoanSphere MSP servicing platform, which is leveraged directly by approximately 70 servicers that represent hundreds of other lenders and financial institutions throughout the country. Black Knight is targeting lenders that do as little as 400 to as many as 2,000 loans a month. When asked about the implementation timeframe, Halbrook confirmed that the implementation will take an average of four months and an additional two months of testing. In contrast, most LOS companies that cater to this market tout implementations as quick as 30 days.

Similarly, other companies like Dorado, Framework, Palisades and others have tried to take an enterprise-level LOS and scale it back to make it more accessible to the small and midtier lender. Those efforts have failed.

So, how will what Black Knight is proposing now buck this trend? “Those companies did code changes to make that work, and in doing so, had to manage different code,” answered Halbrook. “All Empower clients run on the same code, so we can offer maximum configuration. Also, none of those companies had the power of Black Knight. We have business intelligence, e-signing, data management, etc. to provide all of our lenders, so we offer a lot more value end to end.”

Black Knight also thinks that this will solve a big industry problem, namely the pain that lenders have to go through when they grow out of their LOS. As the small and midtier lenders on Empower Now! grow they can turn on added features and functions without having to switch their LOS every few years. This surely is a big announcement. We at PROGRESS in Lending wish every vendor well. We want to promote innovation and automation in any way that we can. We’ll be sure to keep you informed about how the industry responds to Empower Now! in the coming days and months ahead.

About The Author

 

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Lenders Are Looking To Improve The Customer’s Experience Big Time

Everywhere you look you will see that lenders are trying new things to improve the customer’s experience. To this I say: It’s about time. To help in this cause, technologists are stepping up with some clever tools. For example, HomDNA’s mobile technology offering is now integrated with the LoanSphere Expedite platform from Black Knight Financial Services. HomDNA, which delivers mobile technology and workflow solutions that span the borrower-to-homeowner experience, has integrated with Expedite to help mortgage lenders optimize the lending experience, increase borrower loyalty and extend customer value.

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HomDNA is a mobile application offering many benefits to homeowners while generating data-driven insights for personalized, relevant consumer engagement. With a pipeline of homeowners who are typically first engaged during a home purchase or refinancing, HomDNA uniquely parses and correlates data from each homeowner’s appraisal, user behavior and interests to help identify and grow long-term, trusted and profitable relationships.

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Available to lending customers through Black Knight’s Expedite platform, HomDNA is a suite of services that enables data and documents to be electronically accessible to consumers during mortgage origination. The integration with Expedite offers several benefits to lenders:

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>> Creates a value-based connection after loan closing: Because HomDNA’s data, outreach and communications are based on individual preferences and user activities, reliable “indicators of interest” support relevant, segmented and welcome engagement with homeowners for years beyond closing. Expedite’s ability to enhance the borrower experience by consolidating various loan documents in a single dashboard view helps reinforce a positive relationship with the borrower.

“Proactively communicating and identifying homeowners likely to refinance or repurchase is imperative to stay top of mind and cultivate the most viable customer relationships,” said Brian Gehl, CEO and co-founder of HomDNA. “Because HomDNA offers value to the homeowner throughout the typical 10 to 13 years in a home, we’re in a unique position to provide relevancy and reliable data lenders and others can capitalize on.”

>> Enhances appraisal delivery: For many lenders, it is challenging and expensive to meet deadlines and track appraisal emails, attachments and physical mailings. In addition, many borrowers find appraisals confusing and difficult to understand. On behalf of the lender, HomDNA will manage the mobile appraisal delivery via Expedite, offering a value-add of an appraisal summary featuring the most pertinent information parsed from the full appraisal. Each appraisal communication is tracked, personalized and lender-branded, and contains the full appraisal along with a link to the summary.

“By giving mobile access to the information that borrowers want most from their appraisal, we simultaneously elevate the customer experience and turn a typically mundane communication into one that drives additional value and customer dialogue,” added Gehl.

“The integration of HomDNA with the Expedite platform provides mortgage lenders with a comprehensive solution to help improve the loan closing process and provide a better overall experience for the borrower,” said Andy Crisenbery, executive vice president, Lending Solutions, Black Knight’s Origination Technologies division.

“In today’s mortgage market, it takes a different type of customer engagement to keep borrowers loyal,” Gehl said. “By working closely with Black Knight, we can offer a comprehensive solution that will enable mortgage lenders to provide today’s borrowers with an enhanced experience that will help solidify relationships.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Black Knight’s Second Quarter Revenue Increases 10%

Black Knight Financial Services, Inc. announced financial results for the second quarter and six months ended June 30, 2016. Revenues for the second quarter of 2016 increased 10% to $255.5 million from $232.1 million in the prior year quarter. Net earnings attributable to Black Knight Financial Services, Inc. for the second quarter of 2016 were $11.4 million, or $0.17 per diluted share, compared to $0.3 million in the prior year period. Net earnings per share attributable to Black Knight Financial Services, Inc. were $0.00 per diluted share for the period from May 26, 2015 through June 30, 2015.

Adjusted Revenues for the second quarter of 2016 increased 10% to $257.5 million from $234.7 million in the prior year quarter. Adjusted Net Earnings from Continuing Operations for the second quarter of 2016 increased 21% to $44.7 million, or $0.29 per diluted share, compared to Pro Forma Adjusted Net Earnings from Continuing Operations of $36.8 million, or $0.24 per diluted share, in the prior year period.

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Adjusted EBITDA for the second quarter of 2016 increased 14% to $116.5 million from $102.1 million in the prior year quarter. Adjusted EBITDA Margin was 45.2% compared to 43.5% in the prior year quarter.

Commenting on the results, Black Knight Executive Chairman Bill Foley said, “This is an exciting time for Black Knight, as we continue to execute on our strategic growth initiatives. During the second quarter, we signed the third largest mortgage servicer in the United States onto our market-leading LoanSphere MSP platform. In addition, with our acquisitions of eLynx and Motivity Solutions, we demonstrated the execution of one of our growth strategies to selectively pursue strategic acquisitions, allowing us to expand our footprint, broaden our client base and deepen our product and service offerings.”

Black Knight President and Chief Executive Officer Tom Sanzone added, “We are pleased with our results in the second quarter. We delivered Adjusted Revenue growth of 10% and Adjusted EBITDA growth of 14%, which drove Adjusted EBITDA Margin expansion of 170 basis points to 45.2%. Our second quarter results reflect our continued focus on driving revenue growth through cross-selling, winning new clients in existing markets and the introduction of new products and solutions to support continuing regulatory changes in the mortgage industry.”

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Revenues for the six months ended June 30, 2016 increased 8% to $497.4 million from $459.3 million. Net earnings attributable to Black Knight Financial Services, Inc. for the six months ended June 30, 2016 were $22.8 million, or $0.34 per diluted share, compared to $0.3 million in the prior year period.

Adjusted Revenues for the six months ended June 30, 2016 increased 8% to $501.7 million from $464.3 million in the prior year period. Adjusted Net Earnings from Continuing Operations for the six months ended June 30, 2016 increased 19% to $85.6 million, or $0.56 per diluted share, compared to Pro Forma Adjusted Net Earnings from Continuing Operations of $72.1 million in the prior year period.

Adjusted EBITDA for the six months ended June 30, 2016 increased 13% to $226.6 million from $200.3 million in the prior year period. Adjusted EBITDA Margin was 45.2% compared to 43.1% in the prior year period.

Definitions of non-GAAP financial measures and the reconciliations to related GAAP measures are provided in subsequent sections of the press release narrative and supplemental schedules. Black Knight has not provided a reconciliation of forward-looking Adjusted Net Earnings Per Share from Continuing Operations and Adjusted EBITDA to the most directly comparable GAAP financial measures, due primarily to variability and difficulty in making accurate forecasts and projections of non-operating matters that may arise, as not all of the information necessary for a quantitative reconciliation is available to Black Knight without unreasonable effort.

Progress In Lending
The Place For Thought Leaders And Visionaries

Be Strategic

Lenders and vendors alike need to be smart and strategic. In some cases that means knowing what you do best and going out and acquiring someone who does something that you don’t do that great so you can be great all around. We can’t all be good at everything.

For example, Caliber Home Loans, Inc., a leading residential mortgage origination and servicing company, has entered into a definitive agreement to acquire substantially all of the assets of First Priority Financial, a regional residential mortgage lender with branches and originators serving California, Oregon, Washington, Idaho and Iowa. The terms of the transaction were not disclosed.

Headquartered in Fairfield, California and founded nearly 40 years ago, First Priority Financial has more than 370 employees focused on providing clients with competitive home financing and a broad range of loan products. The acquisition will expand Caliber’s geographic footprint in the Western United States. Following the acquisition, Caliber will have a servicing portfolio of approximately $90 billion, licenses in 50 states, and a salesforce of more than 1,000 across more than 250 retail locations throughout the United States.

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“With the addition of First Priority Financial, Caliber continues its strategy of expanding into high-growth, regional markets with attractive long-term opportunities,” said Sanjiv Das, Chief Executive Officer of Caliber. “This combination will help build on Caliber’s retail production channel, particularly in the attractive Northern California market. We believe First Priority Financial is the right fit for Caliber as they share our strong customer-centric culture and we welcome their talented team to the Caliber family. We look forward to working together to better meet the unique financing needs of homeowners across the country.”

“Since our founding in 1977, we have made it our mission to grow with our industry and adapt to an evolving market,” said Michael Soldati, Chief Executive Officer and President of First Priority Financial.  “With this transaction, we are excited to achieve another important milestone in our history and join forces with Caliber, one of the country’s leading mortgage providers, to offer our customers a broader suite of lending services. Caliber’s national scale, as well as its direct access to capital markets, exceptional customer service and advanced technology, make it the ideal partner for First Priority Financial. As part of a more dynamic organization, we are confident we will be better positioned to serve our clients and enable them to obtain the very best loan for their unique situation.”

The transaction is expected to close by early July 2016.

And we’re seeing smart acquisitions on the vendor side of the business, as well. For example, Black Knight Financial Services recently acquired eLynx. eLynx solutions help automate paper-intensive processes, improve workflow, reduce costs and support compliance with industry regulations. Black Knight supports many of the nation’s largest mortgage lenders and servicers with a comprehensive, integrated solution suite. With the addition of eLynx’s capabilities to Black Knight’s current offerings, Black Knight will now offer lender clients:

>>  A flexible document delivery platform, which securely facilitates interchange between consumers, lenders, title providers and other transaction participants either electronically or via proprietary, integrated print and mail capabilities;

>>  A private-labeled, mobile-friendly consumer portal to support process transparency; collect and deliver documents throughout the loan lifecycle; and schedule inspections and closings;

>>  Connectivity to an industry-leading network of settlement agents; and

>> Support for data-validated electronic mortgage, including electronic document delivery (eDelivery), eSignature, eClosing, and eRecording as well as electronically registering and submitting the mortgage note to an electronic vault.

“This is an exciting step for Black Knight as we announce our first acquisition as a publicly traded company,” said Black Knight Executive Chairman Bill Foley. “Over the last two-and-a-half years, we have successfully implemented our business plan to restructure the company and develop a strong cross-selling organization. It is now time to begin executing our acquisition strategy to accelerate our growth profile and fill out our product offerings.”

“Integrating the strengths of Black Knight and eLynx will give clients an even sharper competitive edge, and will significantly expand Black Knight’s opportunities to cross-sell our comprehensive solutions,” said Black Knight President and CEO Tom Sanzone. “We believe this combination will continue to drive process standardization and efficiency throughout the loan lifecycle, and will positively impact industry initiatives focused on TRID, consumer advocacy and eMortgage adoption.”

“We are excited to become part of Black Knight, a company well known for providing leading technology to the mortgage industry,” said Sharon Matthews, CEO of eLynx. “I am confident eLynx and Black Knight clients will benefit from the combination of our powerful technologies and mutual commitment to delivering innovative solutions to the mortgage industry.”

I think we’ll see more strategic acquisitions like this going forward.

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Integration Delivers TRID-Compliant loan Estimate

Closing Corp, a provider of closing cost data and technology for the mortgage and real estate services industries, announced today that its Loan Estimate Module is now available through Empower, Black Knight Financial Services’ loan origination system (LOS). The Loan Estimate Module currently provides users with access to RESPA-compliant data, audit trails and a data guarantee for the Good Faith Estimate (GFE). Beginning with the CFPB’s revised go-live date of Oct. 3, the module will be able to provide validated fee information to populate the new Loan Estimate (LE) mandated by the TILA-RESPA Integrated Disclosure (TRID) rule.

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ClosingCorp provides fully managed, vendor-verified rates and fees from nearly 20,000 unique real estate service providers covering every geographic area in the nation in addition to its proprietary data asset for accurate recording fees and transfer taxes. The integration of ClosingCorp’s Loan Estimate Module within the Empower LOS will incorporate client-specific business rules to deliver correct fees in each estimate and immediately notify loan officers when transfer tax or recording fees are scheduled to change. This integration will enable loan officers to enhance their regulatory readiness and provide consumers with accurate and comprehensive information about the total cost of the transaction. It also provides a complete audit trail and an enhanced ClosingCorp Guarantee.

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“While many lenders and their network of settlement providers have wisely invested in improved collaboration tools, there is still much to consider. To be truly ‘TRID-Ready’ you need to be able to verify the upfront accuracy of the fees that are being quoted, and those upfront fees need to be in sync with the fee logic used to create the final Closing Disclosure, or you run the risk of being out of tolerance and causing delays at the closing table,” said Brian Benson, chief executive officer at ClosingCorp. “It is increasingly difficult for lenders to do that on their own, or to expect settlement providers to navigate this for them. Lenders need focused resources, like ClosingCorp, to capture, verify, standardize and guarantee this information in the proper form for it to be consumed. Due to its high market share, the integration with the Empower LOS was extremely important because it provides more loan officers with the market’s most accurate rates and fees available in the appropriate form to support TRID compliance.”

“ClosingCorp and Black Knight are dedicated to providing solutions that help streamline the loan closing process and support a better overall experience between lenders and settlement agents,” said Richard Gagliano, managing director of origination solutions for the Black Knight Origination Technologies division. “Not only will this support our clients’ TRID initiatives, but it will also help improve operational efficiencies and control.”

Progress In Lending
The Place For Thought Leaders And Visionaries

Real Estate Market Remains Healthy

Each month, the Data & Analytics division of Black Knight Financial Services releases its Home Price Index (HPI) report. This month the company took a look at data on May 2015 residential real estate transactions.

The Black Knight HPI combines the company’s extensive property and loan-level databases to produce a repeat sales analysis of home prices as of their transaction dates every month for each of more than 18,000 U.S. ZIP codes. By combining property and loan data in its repeat sales analysis, the Black Knight HPI covers about 89 percent of single-family residential properties in the U.S. The Black Knight HPI represents the price of non-distressed sales by taking into account price discounts for REO and short sales.

Some highlights include:

>> U.S. home prices were up 1.1 percent for the month, rising 5.1 percent on a year-over-year basis

>> At $251K, the national level HPI is now just 6.5 percent off its June 2006 peak of $268K, and is up over 25 percent from the market’s bottom in January 2012

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>> New York led gains among the states, seeing 1.8 percent month-over-month appreciation

>> Among all the nation’s metros tracked by the Black Knight HPI, Janesville, Wisconsin saw the greatest monthly appreciation at 3 percent

>> New Mexico accounted for 8 of the 10 lowest appreciation rates among all metros in the U.S.

>> Among the 20 largest states by population, New York, Tennessee and Texas all hit new peaks in May

>> California leads the 20 largest states with a 49.3 percent rate of appreciation from the national market bottom

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>> As of May, home prices in San Francisco and San Jose are nearly 70 percent above where they were at the market’s bottom

>> Of the nation’s 40 largest metros, 12 hit new peaks – Austin, TX; Boston, MA; Columbus, OH; Dallas, TX; Denver, CO; Houston, TX; Nashville, TN; Pittsburgh, PA; Portland, OR; San Antonio, TX; San Francisco, CA; and San Jose, CA

>> Home prices in Kansas City, MO are now within 0.6 percent of hitting a new peak

Here’s a national overview of the findings:

BKFS_HPI_May2015_US_hi_res

Progress In Lending
The Place For Thought Leaders And Visionaries

Executive Spotlight: Dan Sogorka of Black Knight Financial Services

eletter-Dan-SogorkaThis week, we are focusing on the impact of change management in the mortgage industry with Dan Sogorka, president of the RealEC Technologies Division at Black Knight Financial Services.

Q: For those who may not be familiar with the concept, can you please briefly describe what change management is all about?

Dan Sogorka: Change management is a deliberate approach to transitioning organizations from a current state to a desired future state. It can be highly organized and orchestrated, or it can be less formal. Typically, the level of sophistication of the change management approach corresponds to the size and/or complexity of the organization undergoing change, and/or the complexity of the changes that must be made.

Change in a business can take many different forms from simple process changes to complete and/or complex system, infrastructure or leadership changes. People respond to change in many different ways. Often times, people resist change, or they are afraid and wary – of change. However, to be successful, within the business environment, it is important to create a culture that is accepting and supportive of change.

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To create an organization that embraces change, it is important that everyone understands change is inevitable, and that it can be very positive, both for the employee and the business. Specifically, how a company executes on specific changes relative to the nuts and bolts of the organization depends on the size and scope of the enterprise, and the level of complexity associated with the changes that must be made. In general, there must be clarity around what the end result looks like; buy in and support from executive leadership; a solid planning process that involves subject matter experts in each impacted area; an implementation infrastructure with identified internal and external participants, timelines and budgets, and check-points along the way as changes are rolled out to ensure that up and downstream impacts are anticipated, and that mid-course corrections can be made if needed.

A foundational element to establishing a culture that adopts change well is clear, consistent and repetitive communications that outline what the change is, what it means to the audience and how they can prepare for the change. For example, if a company is implementing a new software, it is important that the audience understand 1) what the new software is; 2) why it is being implemented; 3) what benefits the audience can expect to receive from the change; and 4) how the audience can receive training on the new software and where they can go if they have questions.

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If these types of communication are done consistently over various types of change, a culture of trust and support can be established. When a team is comfortable with the paradigm of change, the high and low points of particular moments in time become less dramatic and, when issues do arise, they can be resolved in a supportive, goal-oriented way.

Q: Is change management something that a company can accomplish internally, or is it better for an objective third party to come in?

Dan Sogorka: If companies have a respected, visible leader who clearly supports both the paradigm of change and the specific changes to be made, and if the organization can establish a change management infrastructure with a dedicated team of subject matter experts and strong internal communications, change management can typically be performed by the business versus utilizing outside consultants. However, for some firms (primarily larger firms) that have to make massive changes in a short amount of time, I think it can be very helpful to seek outside experts who understand the industry a company is working in, and understand the complexity of the changes that must occur. In that case, industry consultants are well-aware of the dynamics of change that must be addressed, and can help companies avoid pitfalls, streamline the change process, and work more efficiently as they turn the ship.

Q: In your opinion, how successful has the mortgage industry been in adapting to the many changes put upon it by regulators and lawmakers during the past five years?

Dan Sogorka: There are so many great examples in the industry; let’s just use the loan origination system space as an example. We have very large lenders, as well as medium-sized and smaller lenders trying to execute on changes that are needed to meet CFPB requirements, while simultaneously adapting to the big market transitions that have occurred over the past five years. Given the new world we work in, I think the mortgage industry has made remarkable progress. Admittedly, some of the changes have been easier to implement than others.

Keep in mind that it can take years to establish the infrastructure to plan and prioritize the changes that are needed to meet new regulations – and to determine the up and downstream impacts of these changes. The process of executing the plan elements – such as updating or replacing technology; making necessary process and workflow adjustments; evaluating and making needed staff member changes, including training and re-assignments; and even determining new education and communication strategies to help customers understand the changes that directly affect them – must then be completed, tested, adjusted and tested again.

To address this reality, many in the mortgage industry have adopted a change management framework that is based on a process of small iterations of change, rather than sweeping multi-year projects that may not meet the final requirements when the time comes. The industry has learned to set up multiple short-term projects – so that in the middle and at the end of each project, organizations can evaluate where they are relative to changing circumstances, and make adjustments as needed before continuing on to the next phase.

Q: Is change management something that can be accomplished in a standalone situation, or is this something that will need to become an integral part of a company’s growth?

Dan Sogorka: Some of that depends on the size and complexity of the organization, but I do believe that the companies that best understand the discipline, as well as science and art around change management will have a competitive advantage. There are many areas within a financial institution that may be called upon to “make changes while the wheels on the car are still moving,” so to speak. I believe that the organizations that can do that as a core competency will stand out in the marketplace and win more opportunities as a result.

Black Knight Financial Services is online at www.bkfs.com/.

Phil Hall has been (among other things) a United Nations-based radio journalist, the president of a public relations and marketing agency, a financial magazine editor, the author of six books and a horror movie actor. Also, as you will discover, he is not shy about stating his views.

Servicing Innovation Lives On

TeleVoice and Black Knight Financial Services have collaborated to develop several innovative solutions that can improve how lenders and servicers manage their customer service communications channels while increasing operational efficiency. Here’s what they accomplished:

The companies developed several TeleVoice applications, then integrated them with MSP, Black Knight’s servicing system. MSP is a complete, end-to-end system used by financial institutions to manage all servicing processes, including loan boarding, escrow administration, investor reporting and more that offers servicers the ability to meet all mortgage and consumer loan servicing needs for any size portfolio. The applications developed include:

>> IVR Payoff Autofax – Prepares and faxes a payoff statement from MSP, when requested by borrowers through the TeleVoice Interactive Voice Response (IVR) system, for more efficient processing;

>> SpotLight – Helps servicers manage day-to-day call processing between borrowers and their assigned contact via a comprehensive single point of contact (SPoC) call management solution;

>> Interactive Voice Response – Improves call efficiency by integrating an automated voice response system with Black Knight’s MSP servicing platform to provide borrowers with immediate, secure access to loan-related information via touchtone phone; and

>> Screen Pops – Improves the caller experience and productivity by delivering an online snapshot of the customer’s loan data to a customer service representative when a call is transferred from the IVR.

“During Black Knight’s 26-year business relationship with TeleVoice, we have worked together to provide servicers with solutions that help them offer better service to their customers; manage their operations more efficiently and cost-effectively; and support their efforts to maintain compliance with industry regulations,” said Joe Nackashi, Black Knight’s chief information officer and president of its Servicing Technologies division.

New American Funding is one of the lenders that has benefited from TeleVoice’s IVR and one-time draft processing.

“Having a solution in place that offers our customers the best experience they can have when they call us is very important and in line with our mission to provide stellar customer service,” said Carol Norton, vice president of system support at New American Funding. “TeleVoice’s commitment to working with us to ensure we have the right system for our needs that meets regulatory requirements has made the implementation process easier.”

“The TeleVoice team of consultants, developers, programmers and support personnel has an average of 15 years of experience working with Black Knight’s MSP technology and with servicers of all sizes,” said Barry Hays, senior vice president of TeleVoice. “This experience has translated into a strong partnership that benefits all parties involved. We look forward to continuing our work with Black Knight and its clients.”

Black Knight offers the full suite of TeleVoice call center solutions to its growing client base. An active Black Knight-TeleVoice User Group, composed of servicing clients, meets regularly to help shape TeleVoice product development.

“The Black Knight-TeleVoice User Group has been an essential part of helping us meet our commitment to deliver solutions that address the changing needs of the servicing industry,” Hays added.

About The Author

[author_bio]

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.