Posts

Lender Launches Digital Platform

Lender Price, a provider of digital lending technology for the financial industry, and Mountain West Financial, a regional mortgage lender based in Southern California, have successfully rolled out Digital Lending Platform (DLP), Lender Price’s online borrower portal. 


Featured Sponsors:

 


Digital Lending Platform (DLP) is a borrower engagement platform that automates and streamlines the mortgage loan application process. The platform integrates with loan origination systems (LOS) to create a seamless environment between the borrower, loan officer and the lender’s operation staff, resulting in a smoother, more transparent and faster mortgage closing process.


Featured Sponsors:

 


“Our borrowers want a convenient and easy to use way to engage with us online,” said Mike Douglas, CEO of Mountain West Financial, a retail and wholesale mortgage lender. “The reason we chose Lender Price is because their platform gave us the flexibility to create a process that doesn’t have a lot of ‘fluff’. We built an efficient workflow that encourages borrowers to complete the application while also ensuring that information was captured in our LOS in real-time.” 


Featured Sponsors:

 


DLP features digital verification services for assets, employment and credit reports, which intelligently fill out loan application data and drive more complete and accurate borrower submissions. DLP provides intuitive tools that allow mortgage lending institutions to create their own borrower experience without any technical know-how.


Featured Sponsors:

 


“Our clients include several large banks and mortgage lenders that insist on controlling the borrower experience,” said Dawar Alimi, CEO of Lender Price. “We built tools that are specifically designed for non-technical people to create complex workflows within DLP. By giving our clients both the flexibility and control they want, we’re providing a sustainable platform because it can change and adapt to their needs over time.”

The deep integration between DLP and Mountain West’s loan origination system provides borrowers visibility throughout the entire origination process. Loan status updates, document uploads and even pricing engine access were built into the LOS integration.

“Our borrowers are happier and it’s a tremendous time saver for our loan officers,” said Douglas. “We’ve rolled out to more than 150 loan officers across 30 branches and it’s been extremely successful for us. We know this is going to transform the way we do business.”

The New Digital Mandate

Providing mortgage borrowers with a digital experience is no longer a competitive advantage but the new reality for mortgage lenders, according to the findings of a new study by STRATMOR Group, a leading mortgage advisory firm. 

In the January issue of its Insights Report, STRATMOR shares key findings from its 2018 Technology Insight Study. The study, which examines the wide range of system technologies that lenders are now using, found that more than three-quarters of mortgage lenders currently give borrowers the ability to sign disclosures online, while nearly as many lenders allow borrowers to upload documents and respond to loan conditions online.


Featured Sponsors:

 


“Today’s borrowers expect a digital experience, and lenders that do not empower consumers to upload and execute loan documents online are not only in the minority, but are falling far behind their peers,” says Garth Graham, senior partner at STRATMOR Group. “Still, while lenders are deploying and utilizing digital capabilities on the front end of the origination process, there are great opportunities to gain efficiencies on the back end.”

Participants in the STRATMOR study included independent and bank-owned or -affiliated mortgage companies ranging in size from under $250 million in annual production to those that ranked among the 10 largest in the industry in total origination volume.  The study contains comprehensive mortgage technology data, analyzed and quantified by STRATMOR’s team of data experts.


Featured Sponsors:

 


In the four years since STRATMOR first began its extensive technology survey, the primary driver of lenders’ technology investments has shifted from regulatory concerns to a focus on improving customer service, Graham says. “Today we have an environment that is about stealing market share and succeeding with the tougher purchase transactions,” he says. “Customer satisfaction and maintaining relationships have replaced regulatory mandates as the top concerns. That means meeting the needs of borrowers and referral sources.”  

Graham says that when considering new technology, most lenders don’t consider the impact it will have on their customers. “That’s a mistake,” he said. “Lenders need to measure borrower satisfaction at a deep level to quantify the impact that any technology will have on their customers. And they need to do so before making the investment in new technology.”


Featured Sponsors:

 


STRATMOR’s Technology Insight Study is the only independent technology survey in the mortgage industry that gathers data on how lenders feel about their mortgage technology experience, capturing their experiences with their technology from lead generation through post-closing and delivery. 

“The study offers lenders much needed non-vendor-provided data on the technologies at work in the mortgage marketplace,” STRATMOR CEO Lisa Springer says. “This information is vital to lenders that are considering updating or changing an existing system to meet the needs of today’s borrowers.”


Featured Sponsors:

 


Other key findings of the study include: 

>>76 percent of respondents provide the ability for borrowers to execute disclosures online compared to 61 percent in 2017. 

>>72 percent provide the ability for the borrower to upload documents and respond to conditions online.

>>72 percent of respondents use agency solutions for loan delivery data (ULDD) validation, compliance and loan salability.

>>Ellie Mae’s Encompass was the most used POS technology for the fourth year in a row, followed by Blend.

>>Only 18 percent of respondents said they do not use a company-sponsored lead management tool. The rest use one or more of 24 third-party systems sharing the CRM market, with Top of Mind, Salesforce and Velocify holding the top three spots.

>>Optimal Blue was the leading product and production engine (PPE) among respondents.

>>The study also found that among the different technologies that lenders use, lenders were most likely to stay with their current production pipeline hedging, LOS and PPE technologies rather than switching to competing products.  

“While lenders are generally satisfied with their LOS, we found that many will stay with a ‘good enough’ LOS because the cost of implementing a new solution is so high in terms of licensing, development and training, not to mention the intangible costs of employee resistance to change,” Graham says. 

The Impact Of Fintech

According to a recently published working paper by researchers at the Federal Reserve Bank of New York (FRBNY) and New York University, fintech lenders have quickly expanded their market share since the Financial Crisis, and in the process have developed efficiencies that give them a significant advantage over more traditional lenders. Prominent mortgage industry executives gathered in Washington, DC at the 8th Annual PROGRESS in Lending ENGAGE Event sponsored by Get Credit Healthy, QuestSoft and Optimal Blue, to really drill down on this industry trend. How has fintech impacted mortgage lending? Here’s the scoop:

“Everything has to be relevant,” says Joseph Ludlow, VP at Advantage Systems. “The proliferation of cell phones has driven technology and innovation. Everything has to be real-time, all the time.”

Featured Sponsors:

 

“We can’t think of innovation as something that happens over night,” noted Luke Wimer, COO at Asurity Technologies. “It’s about changing what a customer usually does. No one person or vendor will bring all the innovation. We have to bring people and systems together.”

Featured Sponsors:

“The average originator is 52 years old,” points out Christine Beckwith, National VP of Realtor and Sales at Annie Mac. “The customer wants to be mobile and so do the new originators, but we have to get the average originator in his or her 50s onboard. It’s a balancing act.”

Featured Sponsors:

“The older originator’s adaptability is challenged,” concluded Ski Swiatkowski, Business Growth/Leadership Specialist at Silver Hill Funding. “However the new originator is a millennial and they want fintech. Rocket by Quicken was good for the industry because now everyone sees the value of using fintech to improve the mortgage process.”

About The Author

Perfecting The Borrower Experience Is All The Rage

As the industry is securely in a purchase market, improving the borrower experience is a key differentiator for lenders looking to close more loans. Prominent mortgage industry executives gathered in Washington, DC at the 8th Annual PROGRESS in Lending ENGAGE Event sponsored by Get Credit Healthy, QuestSoft and Optimal Blue, to really drill down on this industry trend. How can lenders offer a better borrower experience? Here’s what was said:

In talking about other companies outside of mortgage that do it right, Denis Brosnan, CEO at DIMONT, said, “My Dad is Amazon’s best friend. So, when people in this industry say that older folks won’t do things online, they’re wrong. What people don’t want is to call a call center. The biggest thing is to reach out to people. You need to be a professional advisor.”

Featured Sponsors:

 

 

“When you think about the customer experience, you really need to white board and draft out the entire process first,” noted Elizabeth Karwowski, CEO at Get Credit Healthy. “From there you need to ask what else can you be doing to get the borrower more engaged. Bring in other folks from outside the industry to give their perspective. We have to create a better journey for the borrower.”

Featured Sponsors:

 

“Borrowers are with you for 30 days, but LOs are with you for life,” added Joe Wilson, Chief Sales and Marketing Officer at SimpleNexus. “We need to ask: How can LOs create a better experience for borrowers? You have to enable LOs and others within your organization to think more about the borrower if the process is ever going to improve.”

Featured Sponsors:

“We can start by doing a better job with the upfront validation piece,” concluded Eric Christensen, Chief Strategy Officer at LERETA. “The industry has done a great job at the point-of-sale, but that’s where it stops. You can’t just offer the borrower a good experience there and stop. We need to perfect the whole process, including the backend, as well.”

About The Author

Financial Resources Federal Credit Union Creates A Better Borrower Experience

Financial Resources Federal Credit Union (FRFCU) has implemented Roostify’s mortgage technology platform in order to create a better online experience for its members applying for or refinancing a home loan. Here’s why:

Featured Sponsors:

 

 
“We were looking for something more user friendly for mortgage applicants. The standard online form didn’t help our members through the process and provided no guidance into what they need to do through each step in the process,” said Jason Reed, First Vice President, Real Estate Lending at Financial Resources. “The Roostify platform has given us a way to walk members through a simple process to input their information, upload documents and get us the information we need in order to close their loan in the most efficient way possible.”

Featured Sponsors:

 
Financial Resources members are now able to complete their entire mortgage application online, including using a mobile device or tablet. They can upload their financial information directly into the platform and communicate with a loan officer during every step of the process. When they are on the go, they can easily upload and sign documents without a trip to the bank, saving precious time in the closing process.

Featured Sponsors:

 
“Not only do our members get a much more user-friendly experience, our loan officers spend much less time chasing information, and they can focus on providing a better experience and closing loans in much shorter timeframes, which benefits all parties involved,” added Reed.

Loan officers benefit from the use of Roostify’s platform with a better way to communicate with members, realtors, lawyers, title agents, and more throughout the process. Additionally, because the application is clearly laid out loan officers receive more complete and accurate information when they receive an application.

“Consumers are looking for two things in today’s home buying market – an easy online experience and transparency,” said Frank Gelbart, Chief Revenue Officer, Roostify. “Utilizing a mortgage solution that keeps the consumer informed of the process in real-time and that can be done entirely online is the key to providing today’s homebuyers with the best experience possible.”

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.

Featured Sponsors:

 

 
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.

Featured Sponsors:

 
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:

Featured Sponsors:

 
>> 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