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Borrower Satisfaction Is Critical

The mortgage industry’s promise of technology creating a faster and easier mortgage origination process does not appear to be fully recognized, as mortgage customers are reporting slower purchase processes. That’s according to the J.D. Power 2017 U.S. Primary Mortgage Origination Satisfaction Study,SM  which finds that overall satisfaction with mortgage originators has declined this year, due in part to a perception of a slower process, despite a significant increase in the number of customers applying online.

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“We’re at a critical inflection point in the mortgage industry where new technology and the growing use of digital mortgage application channels has made it possible for the origination process to move more quickly; however, the customer is still the final judge of speed and quality,” said Craig Martin, Director of the Mortgage Practice at J.D. Power. “A critical element of satisfaction is setting expectations, and this tends to be a weakness of technology, which is demonstrated by substantially lower satisfaction among customers who do not work with a human to complete their application.”

Following are some key findings of the study:

>>Overall satisfaction declines as purchase process slows: Overall satisfaction with primary mortgage originators is down 8 points (on a 1,000-point scale) in 2017. This is driven in part by reports of longer times from initial application to closing. On average, the purchasing process took 36 days this year, an increase of almost a week from 2016.

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>>Digital use surges but not digital satisfaction: For the first time in the study’s history, both refinance and purchase customers cite online/website as the most frequent method of submitting a mortgage application. A total of 43% of mortgage customers indicate applying digitally in 2017, up from just 28% in 2016. Satisfaction among customers applying online/via website has declined by 18 points year over year and trails satisfaction with in-person applications by 10 points this year.

The Lodasoft Digital Mortgage Platform provides loan officers with complete loan visibility, accountability, and transparency in one easy to use digital mortgage solution. In addition, the solution acts as a 24-hour virtual assistant providing one point of access for system driven communication, gathering of documents, automated lead generation, in-process status updates and post-closing follow-up.

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Our intelligent digital loan manufacturing workflow helps lenders automatically identify and complete rudimentary tasks throughout the enterprises lending lifecycle, streamlining the origination process to assist is closing loans faster. Our digital mortgage platform offers mortgage lenders the ability to further simplify their origination and closing process while keeping borrowers, realtors, and all other interested parties involved every step of the way.

The Lodasoft difference is in focusing on the loan, manufacturing it in as little time, with as little errors as possible, while communicating every step of the way. When implementing Lodasoft, lenders can take a traditional pipeline-driven model (file by file) and move to a prioritized task-driven model while automating communication simultaneously.

By focusing on the loan, lenders are able to identify all of the mini-bottlenecks from lead to prequalification to in-process, closing, post-closing and beyond. The borrower will see the benefits of more transparency and faster processing. As a result of simultaneously automating communication along the way, all interested parties have a new sense of involvement creating much deeper relationships further driving greater borrower satisfaction.

About The Author

Adam Batayeh

Adam Batayeh is President of Lodasoft, the mortgage industry’s leading solution to help lenders eliminate complexity and automate the manual workflow involved in the everyday loan process. With more than a decade of experience in the mortgage industry, Batayeh has held executive sales, marketing, product and strategic partnership positions with key mortgage technology providers. He is responsible for overseeing the daily operations, growth of organization, strategic partnerships and long-term strategic vision of Lodasoft. You can contact Adam at abatayeh@lodasoft.com or to find out more about Lodasoft visit website www.lodasoft.com

Churchill Mortgage To Expedite The Mortgage Process For Homebuyers

Churchill Mortgage, a lender in the mortgage industry providing conventional, FHA, VA and USDA residential mortgages across 44 states, announced the launch of its Certified Homebuyer Program to improve how borrowers search for and purchase a home.

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For many borrowers, getting pre-approved for a mortgage is the first and most important step towards making an offer on a house. Churchill, understanding the importance of expediting the process for homebuyers in a “seller’s market,” will now offer borrowers the opportunity to be pre-underwritten for their mortgage. This initial step will allow those borrowers to effectively get ahead of other buyers and have the confidence that any qualified offer they make on a house will go through in the most efficient manner.

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“The first step to debt free homeownership is finding the property you want and getting it under contract, but in many markets, there is a high level of competition between borrowers who may be interested in the same property,” said Mike Hardwick, president of Churchill Mortgage. “Churchill’s Certified Homebuyer Program was designed to help our borrowers get a head start on securing funding so they are positioned to present offers that are already pre-approved and pre-underwritten – increasing their odds of having their offer selected.”

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Founded in 1992, Churchill Mortgage is a privately owned company by its more than 400 employees. A full-service and financially sound leader in the mortgage industry, the company provides conventional, FHA, VA and USDA residential mortgages across 44 states. As heard on personal finance expert and author Dave Ramsey’s nationally syndicated radio show, the lender’s mission is to help borrowers achieve debt-free homeownership and build wealth through a smarter mortgage plan, regardless of their starting point. Churchill Mortgage is a wholly-owned subsidiary of Churchill Holdings, Inc.

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.

Learn From This Lender …

Smart lenders are implementing new ways to track customer satisfaction. For example, Mann Mortgage, LLC a Montana-based mortgage lender operating in 15 states, has begun to utilize the firm’s MortgageSAT borrower satisfaction survey service. Unlike previous users of the service, Mann will use the tool to measure customer satisfaction across a number of distinct brands, including third-party originators.

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“Mann Mortgage is consistently striving to exceed customer expectations with all of our Valued Customers,” said Jason Mann, CEO of Mann Mortgage. “Partnering with MortgageSAT will allow for us to constantly monitor our quality of customer service throughout the mortgage loan process, ultimately resulting in measurable data directly from our customers.”

Mann Mortgage utilizes multiple origination channels for mortgage production sources. The company wanted to measure borrower’s satisfaction with the origination process without sacrificing the local identities of its affiliates or correspondent partners. Mann Mortgage needed a survey tool with more analytical power and the ability to respond quickly to dissatisfied borrowers. The company was also looking for a tool that would allow them to accurately reflect the role of their third party partners in the origination process. After a thorough review of its options, Mann Mortgage settled on MortgageSAT.

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STRATMOR Group based its MortgageSAT offering on the Mortgage Customer Satisfaction Index (MCSI), a measurement the company developed in association with CFI, an industry leader in customer satisfaction measurement. The MCSI is an adaptation of the American Customer Satisfaction Index (ACSI), founded at the University of Michigan’s Ross School of Business. The MCSI is the first uniform measure of borrower experience in use in the mortgage industry.

“Mann Mortgage is the first lender to use MortgageSAT to gauge customer satisfaction for its third party originators,” said Tim Ryan, Senior Director at STRATMOR Group. “MortgageSAT helps lenders like Mann Mortgage monitor and ensure a good origination experience and promote the local loan sources that do it well. MortgageSAT allows lenders to respond to borrowers immediately, e.g. whenever a satisfaction rating falls below a trigger benchmark, turning dissatisfied clients into a source of new referral business.”

“STRATMOR was able to modify its MortgageSAT offering to help us with our unique approach,” Mann said. “STRATMOR’s MortgageSAT survey tool is the product we were looking for.”

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.

Be Proactive About Customer Satisfaction Or The CFPB Will Get You

STRATMOR Group, a consulting firm that helps mortgage banks build profitable mortgage lending operations, has launched a new survey under its innovative PeerViews industry survey-of-the-month program addressing the who, what, when and why of lenders’ borrower satisfaction measurement programs. Lenders are welcome to participate in this survey between now and August 7th, after which the survey will close. Survey results will be distributed free to participants by a target date of August 21st. Here’s why this is important:

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“Federal regulators have made it quite clear that the borrower experience is a metric that the government will use to gauge individual lender performance,” said Dr. Matt Lind, STRATMOR Group’s Managing Director. “Failure to satisfy borrowers poses a serious reputational and compliance risk that lenders must mitigate if they hope to succeed. Further, independent research has consistently shown that companies that continuously improve customer satisfaction achieve significantly superior financial results as well. How lenders are approaching this challenge is not clear; and that’s what our next PeerViews study will determine.”

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STRATMOR’s PeerViews program is a fast turnaround, small-survey program that gives senior mortgage executives a unique way to obtain specific qualitative mortgage industry information. All PeerViews surveys are conducted as “blind” surveys, with results aggregated to protect the privacy of participants. Full results of the survey are made available only to survey participants. For more information about this PeerViews survey, visit the company’s website.

STRATMOR Group is a mortgage industry advisory firm that offers a range of products and services designed to provide lender CEOs and senior executives in sales, marketing, technology and operations with comprehensive data and key insights across a full spectrum of consulting services. The firm serves more than 250 companies operating in the sector and provides consulting on strategies and actions clients should implement to improve growth and profitability, reduce risk or position themselves to make an acquisition or sell the company. It is well known across the industry for its financial models and its collaboration with the Mortgage Bankers Association in conducting the PGR: MBA and STRATMOR Peer Group Roundtables program.

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.