Pavaso And First Title Partner To Help Enhance Digital Closing Adoption

Pavaso has partnered with First Title & Escrow, Inc. (“First Title”), a technology-focused national settlement services firm, to provide clients with a comprehensive digital closing program. Pavaso, a leading mortgage technology provider, is the developer of the industry’s only truly digital mortgage enterprise solution platform.

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Headquartered in the Washington D.C. Metropolitan area, First Title provides title and settlement services nationally. The company prides itself on being a technology-focused provider, committed to applying the latest in digital advancements to create the best possible consumer experience.

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“The fully digital mortgage is here, and we couldn’t be more excited to partner with Pavaso,” said Stephen Papermaster, President of First Title. “With this partnership, First Title is among the first to offer fully digital closing services to our clients.”

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Pavaso’s technology is simplifying the closing process for home buyers across the country and delivering an accurate, compliant, consistent closing in 15 minutes or less. The collaborative platform brings title documents and lender documents together for digital signature and allows consumers to have access to all documents anywhere, on any device prior to closing. Pavaso’s Digital Close platform provides flexibility in closing by producing hybrid closings as well as complete eNote and eVault transactions.

“We are finding that mortgage lenders and their customers are beginning to expect the digital closing option, and service providers unable to deliver that are falling behind the curve,” said Mark McElroy, CEO, Pavaso. “First Title, however, has long been among the early adopters when it comes to new and consumer-focused technology. As a result, this partnership is a natural fit which will only accelerate the ongoing digital transformation industrywide.”

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

FirstClose Partners With Chicago Title Insurance Company To Provide Wider Range Of Services

FirstClose, a provider of technology solutions for mortgage lenders nationwide, today announced a partnership with Chicago Title Insurance Company.

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Through this integration, the FirstClose Report now provides financial institution clients with Chicago Title’s property search, legal and vesting products and services. The property search report includes items such as the last grantee of record, a legal description of the property, a list of mortgages and liens on record, the permanent index number and the latest transfer deed on file. This report can be used with residential or commercial properties.

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In addition, FirstClose and Chicago Title’s full legal and vesting services include the last grantee of record, a legal description of the property in text format and the latest transfer deed on file.

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“Our comprehensive title products and services enhance FirstClose’s home equity and refi suite of offerings to add efficiencies and further expedite closing times for lenders,” said Thomas Curry, vice president of Chicago Title.

“We are thrilled to be working with Chicago Title and know that this partnership will only improve our product offering and allow us to better serve our clients,” said Tedd Smith, chief executive officer of FirstClose. “Giving our clients options when it comes to products and services has always been a key part of our business. Partnering with a powerhouse like Chicago Title will help us continue to drive our business forward.”

Millennial Homebuyers Exercised Their Purchase Power

Millennial homebuyers across the country exercised their purchase power in April as competition for limited housing inventory continued. Eighty-nine percent (89 percent) of mortgage loans made to Millennial borrowers during the month were for new home purchases, up one percentage point from the month prior, and the highest percentage since May 2017, according to the latest Ellie Mae Millennial Tracker.

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Interest rates also continued to rise in April to 4.73 percent, on average, up from 4.63 percent the month prior. This is the highest interest rate recorded since Ellie Mae began tracking Millennial loan data in January 2014.

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As interest rates crept up, average loan amounts to Millennials fell. The average amount was $194,300 in February, $192,055 in March and $188,171 in April.

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“Most Millennials are buying a house because there are major changes happening in their lives such as starting a family, getting a new job, or because they’ve decided that they want to build equity and stop renting,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae. “We believe Millennial home purchases will continue to climb this summer and while interest rates may slightly impact the size of homes borrowers can get for their money, we don’t foresee it impacting their desire to buy.”

Overall, conventional loans represented 67 percent of all closed loans to Millennial borrowers, while FHA loans held steady at 29 percent from the previous month. VA purchase loans for Millennial borrowers represented 79 percent of all VA closed loans in April, steady from the month prior, and up from 66 percent in February.

The time it took for Millennial homebuyers to close a loan remained flat month-over-month. Purchase loans took an average of 39 days to close and refinance loans took an average of 44 days. FHA purchase loans took an average of 40 days to close, compared to 41 days in March. VA purchase loans averaged 49 days-to-close, compared to 45 days the month prior.

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

Credit Interlink Integrates Income Verify With LendingQB For Faster Verifications

Credit Interlink, a provider of SaaS mortgage origination technology solutions, has integrated its Income Verify, with LendingQB, a provider of SaaS loan origination technology solutions, to facilitate quicker and more efficient 4056-T verifications.

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Thanks to certification through Fannie Mae’s Day One Certainty, Income Verify has direct access to tax transcript verifications through the IRS in order to expedite the time needed to process requests within LendingQB’s LOS. Likewise, the solution better prevents the risk of fraud through its secure interface, creating a more cost-effective way to collect borrower data.

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“In a world growing more dependent on digital technology, borrowers have come to expect the lending process to replicate experiences they experience in other areas,” said Mark Yoder, Vice President of Business Development, Credit Interlink.  “With Income Verify, borrowers are able to provide their information up front and loan officers are able to verify it without adding unnecessary delay to the origination process, all in a secure manner.”

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LendingQB’s web browser platform provides mortgage lenders with core LOS capabilities using modern web-optimized technology, enabling robust integrations to other web platforms such as Credit Interlink. Using LendingQB’s API framework, Credit Interlink is able to extend the capability of lenders, expediting the origination process and allowing more direct interaction with borrowers and other parties to the loan.

“Credit Interlink’s streamlined approach to data verification, credit and fraud is innovative and perfectly fits the ever-changing mortgage industry,” said David Colwell, vice president of strategy at LendingQB. “By utilizing Income Verify, our lenders are able to verify borrower data in a fast and safe manner, enabling them to reduce the time needed and the overall cost to originate loans.”

Borrower Satisfaction & Digital Lending

According to the J.D. Power 2017 U.S. Primary Mortgage Origination Satisfaction Study, a total of 43% of mortgage customers indicate applying digitally in 2017, up from just 28% in 2016. However, satisfaction among customers applying online/via website has declined by 18 points year over year.

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According to that same study, trust is overwhelmingly the difference. Overall satisfaction among mortgage customers with high levels of trust in their loan representatives is 358 points higher than among those with low levels of trust. The top three elements driving that perception of trust are:

>>Representatives always calling back when promised

>>Continuity in working with a single representative throughout the process

>>Representatives proactively providing status updates

Rocket Mortgage is America’s largest mortgage lender based on Rocket Mortgage data in comparison to public data records. Rocket Mortgage is a fast, powerful and completely online way to get a mortgage for refinancing or buying a home, which was developed by Quicken Loans.

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Quicken is a household name. They had trust. They also had resources to be able to provide the transparency. This kind of loan volume doesn’t get closed because of just an amazing digital app. They had continuity and could afford to have a single representative working throughout the process. Someone was there to call back when promised. Etc. Etc. Etc.

To survive and to be able to enhance borrower customer satisfaction, brokers, loan officers, and lenders now require an intelligent loan manufacturing solution from a provider that truly understands mortgage banking and its constantly shifting mortgage process. The right digital mortgage platform helps you drastically reduce the chaos in your daily lending processes while improving communication to help you close more loans faster. This allows you to deliver an enhanced borrower experience giving you more time to do what you do best exceeding your borrowers expectations.

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In 2017, Lodasoft realized that the “Digital” solution wasn’t just in providing a rocket-like experience and incorporated intelligent loan manufacturing as away to give the mid-size lender and broker the best shot at competing with the top-25. We’ve leveled the playing field for our clients by allowing for system-driven and automated transparency and accountability that lenders of any size can afford to ensure that someone is there to call back when promised.

Lodasoft’s digital mortgage platform drastically reduces lending costs, chaos and cycle times to help you build a significantly more efficient mortgage business while providing a truly memorable borrower experience.

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 or to find out more about Lodasoft visit website

A Critical Inflection Point

When you look at the 2017 J.D. Power U.S. Primary Mortgage Origination Satisfaction Study, it shows that 43 percent of mortgage customers applied digitally in 2017, compared to just 28 percent in 2016 – that’s a 15 percent increase on a nominal basis, but a 54 percent jump on a relative basis.

“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, in a press release.

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So, what does this mean? It means that consumers’ preference for digital mortgages continues to grow, and that lenders need to adapt to maintain their top and bottom lines. It also means that lenders must provide the optimal digital mortgage experience, or borrowers will open up a new tab, scan Google for another lender, and find an easier way to get a mortgage. Configurability is a key factor to operating an optimal digital mortgage platform. Essentially, technology – software especially – must be customizable and adaptable, two key tenets of configurability.

Technology isn’t meant to completely overhaul business and make it unrecognizable. The right technology—configurable technology—plugs into lenders’ operations and augments their capabilities. This includes meeting operational requirements, satisfying borrower demands, and maintaining brand integrity.

The J.D. Power study also indicated that among other factors, trust in the brand of the lender plays an important role in attracting borrowers. Consistency plays a key role in branding.

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For instance, if a lender’s logo is black, blue, and grey, that lender’s website design should align with those colors. On a higher level, let’s say that lender specializes in VA loans. If that lender buys a cookie-cutter website, it might not be able to highlight its VA loans or separate it from other loan types like the rest of its marketing collateral does. Customizable websites allow the lender to add in factors like this, maintaining its brand integrity and satisfying its borrower base.

Digital point-of-sale (POS) applications are just as vital to maintaining brand consistency. Let’s say that lender’s website fulfills its role at marketing, and a website visitor decides to apply for a loan. The borrower clicks the “Apply Now” button, giving way to the POS application. If the software transition from website to POS isn’t smooth, then the website visitor’s transition to borrower might not happen. If the POS application isn’t customized, it might appear like a foreign site—not controlled by the lender—to the borrower. Mortgages require sensitive information, and borrowers don’t want to hand it over to just anyone or any application. Customization maintains trust. Trust maintains that borrowers complete digital applications.

Configurability also allows for lenders’ digital mortgage platform to sync with their existing operations and business needs. For instance, let’s say a lender already operates through a loan origination system, but plans to add a POS to its digital mortgage platform. That POS needs to integrate with the loan origination system to ensure that lenders enjoy the full benefits of digital mortgages—to ensure that processes get expedited and workflows get streamlined.

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If that lender operates in different states, its POS might require customizations to request additional information or provide different disclosures. Configurability makes sure that a borrower in New Jersey doesn’t read disclosures that are specific to Texas or Ohio, and vice versa.

If you’re investing in digital mortgage software, you should receive the software you want. Let’s say you have 10 key components you’re looking for in digital mortgage software, and you’re looking at two companies to provide a POS application. Company A satisfies 8 of your components, while Company B only satisfies 7. Company A does not have configurable software, while Company B does. Within a matter of weeks, Company B can develop its software to satisfy all 10 components – while Company A can’t.

And technology keeps changing. You might come up with new requirements. Company B, the configurable one, can adapt and change as your business needs change. Perhaps you open a branch near the coast, and need to integrate flood insurance information into your digital POS application. Configurable software allows developers to add in data-entry fields for flood insurance and integrate with new third parties. Digital POS’s request address information of the prospective home tied to the mortgage. When borrowers enter that information, the POS can integrate to third parties that verify the address location, and identify if that home will require flood insurance. This integration allows for flood insurance information to only appear when it’s required, maintaining the integrity of your digital mortgage while acquiring new business.

Something else that keeps changing: Compliance – one of the most crucial factors lenders worry about. Today, lenders can’t close loans—let alone operate—without compliance. Imagine that you invest thousands of dollars in manufacturing your digital mortgage platform and spend hundreds of hours training your employees, then the CFPB comes out with a new or changed regulation. If your software isn’t configurable, making this change may pose difficulties. If it is configurable, the pain is lessened. Moreover, chances are that your configurable technology provider emulates the software it produces – being cutting-edge, adaptable, and forecasting potential changes. Thus, they might have already anticipated this change, and are in position to make this adjustment as seamless as possible.

Perhaps the most critical factor to configurability entails the capability to integrate freely and seamlessly with third-parties. I mentioned loan origination systems earlier. Other third-parties include websites and content management systems, customer relationship management (CRM) systems, credit and data verifiers, banks and other financial institutions, and the IRS. Some companies fulfill a range of these needs, which make their integrations even more valuable.

Integrating to third parties expedites process, streamlines workflows, and reduces costs. Integrating with CRMs allows for loan officers to process leads and bolster marketing efforts. It also helps them maintain updated statuses with current prospects and borrowers. Integrations with credit and data verifiers ensure the secure collection of valid, compliant information from trusted third parties. Integrations with banks and other financial institutions plug asset and income information into borrowers’ applications. Borrowers no longer write—let alone type— line after line of information; they simply enter their account numbers and move onto the next part of the application. Originators and processors no longer need to request bank statements, wait to receive them, parse through them, mark red flags, contact the borrower, and snail mail the document back and forth to settle discrepancies. Integrations pull bank statements for originators. Automation helps processors parse through the statements with more ease. Digital POS’s provide a digital portal for loan officers and processor to settle discrepancies with borrowers with a few clicks of a mouse.

All of these integrations change – think about how often your smartphone updates itself. Lenders’ digital mortgage software needs to seamlessly adapt to integration partner updates. Let’s say the IRS conducts a regular software update. If a lender’s POS application doesn’t update along with it and the integration goes haywire, borrowers won’t be able to pull their tax information into the application. Now, the borrower will have to wait to enter that information at a later time, and the loan origination timeframe gets extended—the opposite of what digital mortgages are intended to do. Even worse, the borrower might get frustrated, abandon the application, and find another lender.

At WebMax, we configure our software to fit our clients’ needs. Whether it’s designing the front-end to fit branding guidelines, plugging into a third party’s API, or adapting to new regulations, we constantly innovate and design to ensure our clients remain on the cutting edge of the digital mortgage revolution.

A key integration for us is our bi-directional sync with Encompass, the loan origination system, which we achieved thanks to our configurability capabilities. This brings boosted efficiency and even smoother processes to loan origination workflows.

Digital POS’s and loan origination systems do not always employ two-way communication. We all know that just because a mortgage application is submitted, it does not mean that the application is complete. The borrower may re-enter to submit supplementary documents, add another bank account, or update some information. When the borrower updates his/her information in the POS application, his/her information may not get updated in the loan origination system. On the other hand, if a loan officer, processor, or underwriter updates information in the loan origination system, the POS might not receive that update.

The bi-directional sync with Encompass ensures that fluid, two-way communication exists between POS applications and the loan origination system. This makes sure that loan processes are accurate and functional, and that information is up-to-date and compliant.

“It is not the strongest or the most intelligent who will survive but those who can best manage change,” said Charles Darwin.

Technology may be powerful and game-changing. But if it isn’t adaptable—configurable—then it will not last the digital mortgage revolution.

About The Author

Zachary Rosenberg is Chief Technology Officer at WebMax, LLC. Rosenberg has more than fifteen years’ experience with software development and coding. He is responsible for overseeing all technical aspects of the company and its clients. He works with executive management to grow the company through the use of technological resources and works to attain the company’s strategic goals. Rosenberg also manages client relations from a technical standpoint, conducts research for the enhancement of our products, and development tasks.

Discussing Digital Innovation

At WebMax the name of the game is innovation. The company is 100% dedicated to helping lenders embrace a better mortgage process that is both digital and customer centric all at the same time. But how do you do that? Well, Curt Tegeler sat down with our editor to share his vision. Curt is President and CEO of WebMax LLC. He is responsible for providing direction for action to all employees and business initiatives. Tegeler’s main responsibilities include communicating and implementing the company’s vision and mission; leading, guiding, directing, and evaluating the work of executive leaders; formulating and implementing the strategic plan; forming, staffing, guiding, leading and managing WebMax; evaluating organizational success; and represents WebMax in civic and professional activities. Here’s how he sees the mortgage market:

Q: You say that innovation is vital to successful or game-changing technology. What innovation do you project for mortgage technology moving forward?

CURT TEGELER: First, I’d like to touch on innovation from the technology side because innovation isn’t just vital to good technology, it’s inherent. Innovation lives in game-changing technology’s DNA. We can’t forget that behind every technological innovation, every line of code, is a person, or group of people. These innovators constantly seek out new ways to do things and make processes better. People don’t make technology because it’s cool. People create new technology to solve problems, streamline inefficient processes, and improve people’s lives. Dee Hock, the founder of Visa, didn’t create Visa to have its name plastered at cash registers and on e-commerce platforms everywhere. He created Visa to provide a solution to a then disorganized and fraud-rampant credit card industry. Hock decentralized Visa’s payment processing system to give the power to its franchises, or member banks. In doing so, Hock revolutionized, and practically created, the fintech/payments industry. Visa was the hottest new thing on the payments block since the check. The point is, as long as inefficiencies, in any industry, exist, people will innovate and create game-changing technology.

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Now, let’s address the mortgage industry. We’ve witnessed this massive secular move to digital mortgages because, well, lenders suffered from a load of inefficiencies. Yes, of course, the move to digital also coincides with changing consumer preferences and our society’s transition from pens and paper to keyboards and touchscreens. In any industry, a business is nothing without its customers. Businesses must adapt to what their customers want, or in some cases demand. So if borrowers in general, and Millennials especially, demand a digital mortgage experience, lenders must meet them on the internet and satisfy that demand. That said, technology wouldn’t revolutionize the mortgage application and origination processes if it was less efficient than doing it with pen and paper. Take cars, for example. Consumers demand fuel efficiency. So, car makers dropped 6-cylinders and 4 and added a turbo booster instead, which proved to be more energy efficient and cost-effective while increasing horsepower and torque. The case is comparable to mortgages. Inefficiencies, coupled with consumer trends in behavior and preferences, has led to the digital mortgage revolution.

Q: What inefficiencies do you see in the mortgage industry? What innovation do you predict for lenders going forward?

CURT TEGELER: Lenders face many inefficiencies, but three key issues include the loan origination process timeline, rising origination costs, and borrower abandonment rates on digital applications. That’s why I think innovators will target digital point-of-sale (POS) applications in the near and intermediate future. A good POS application employs integration and automation, which reduces loan origination times and ensures valid information to produce compliant loans. This digital mortgage innovation drives lenders to close more loans faster. The integrations and automation that power the backend of digital POSs create a seamless application process for the borrower, which reduces completion time and origination costs. Automation does the work for the borrower, leading to decreased abandonment rates. Rather than sending borrower information to a credit or asset verifier, digital POS’s integrate with verifiers’ APIs. When borrowers input information, the POS simultaneously communicates with the APIs in real time. In effect, the POS verifies borrowers’ information while they complete the application. Borrowers need not fetch a bank statement; just plug in your account number and the POS will retrieve everything it needs. Lenders’ demand for these results will drive technology providers to brew another pot of coffee and get to innovating.

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In the long term, I think Blockchain has the potential to impact the mortgage space. Before I go on, I want to clarify that I’m not pandering to the pandemonium surrounding bitcoin and cryptocurrency. While I do see the risks and inefficiencies of the cryptocurrency market, I do recognize the power of its underlying technology, blockchain, and what it can mean for fintech. For instance, we’re seeing properties listed for bitcoin and nothing else. These could be marketing gimmicks or someone trying to flip their listing by jumping on the latest trend. However, with examples of this showing up regularly, it could be a sign of things to come in our industry.

All of the big banks are looking into blockchain technologies, and some have even filed for patents. Blockchain is all about transactions. Key examples include the transfer of shipments in logistics operations and the exchange of securities through trading on Wall Street. Blockchain might enter the mortgage industry a variety of ways in the coming years, whether through verifying the data collected through integrations, regulators and GSEs ledgering closed loans, or even processing the monthly payments made by the borrower. Blockchain is in its infancy stage, so the best hasn’t even yet been thought.

Q: You said that the length of the origination process and rising origination costs plague lenders nationwide. Can you expand on how the digital POS solves these problems?

CURT TEGELER: According to the Mortgage Bankers Association, the costs to originate a mortgage skyrocketed 80% in the last 7 years. At the beginning of 2017, the national average to close a loan stood at 51 days, up from an average of 30 days just 7 years ago as the burden of paperwork and broader requirements to vet borrowers weigh on lenders. The loan origination process always stood as a long, arduous, drawn-out series of sending documents for verification, waiting to receive them back, and then reeling in borrowers to sign and approve each step of the process.

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Then came 2008. The Housing Crisis dropped a bomb packed with regulations and compliance standards. Regulators posed new laws as recent as October 2015, with the passing of the TILA-RESPA Integrated Disclosure laws, which required lenders to send borrowers documents 3 days prior to closing. If any changes are made, they must wait another 3 days. In effect, timelines got extended as loans had to maneuver through an approval process inundated with checkpoints. Moreover, costs to originate increased as regulators pressured lenders to maintain compliance. The mortgage industry needed technology then more than ever, not to just adjust to consumer preferences, but to survive in the new lending world.

We discussed how integrations and automations streamline the lending process. As a result of receiving borrower information faster, lenders can start their compliance processes earlier in the loan lifecycle. Plus, borrowers can get pre-approved in minutes, equipping them with a budget and allowing them to start their home-searching process earlier than ever before. This resulted in faster loan closures.

As of November 2017, mortgage closures averaged 43 days, down from 51 days earlier in the year, a near 16% decrease. Although this is a great improvement we can attribute to technology, it still doesn’t satisfy those of us who embrace the digital mortgage revolution. All we can do is continue to innovate and drive that closure time down. By leveraging the seamless data integrations and automations engineered into digital POS applications, we can turn days-long processes into minute-long processes.

This affords more time to generate new business, so lenders cut costs and increase top line numbers simultaneously. When digital POS’s help maintain compliance, lenders can allocate more time to improving their respective companies’ loan process and borrower relationships. A good POS also reduces overhead costs. The newest POS’s allow the entire loan process to live in a single location. Borrowers and loan officers can upload documents at any time to share, communicate with each other important messages, and check for updates. Loan officers need not pay for shipping documents, nor spend money on lavish offices to entice potential borrowers.

Q: What about abandonment rates? How do digital POS’s factor into application completion rates and ROI?

CURT TEGELER: Lenders’ POS applications provide the majority of a borrower’s digital mortgage experience. Without an easy-to-use, user-friendly POS, lenders fail to convert applicants into borrowers. For instance, WebMax’s POS application, START, provides smart data entry and smart data elimination. What this does, essentially, is make it so the borrower can only input the correct information in the appropriate sections. Software developers need to create these products with the least tech-savvy user in mind. That said, we aim to erase any exit points for the applicant. Lenders can lose a potential borrowers at any hiccup, any roadblock in their digital application. In addition to navigating the application or not know what information to enter into which fields, START closes another key exit point for borrowers: time. START verifies data in real time by connecting to LOS’s, pricing engines, credit verifiers, asset verifiers, banks, and location services. These integrations ensure speedy results for the borrower while providing accurate, compliant information for the lender. As a result, START can pre-approve borrowers in less than 10 minutes.

START provides lenders a dramatic drop in abandonment rates. User experience is vital in reducing abandonment rates and increasing closed loans. The Fintech industry’s average abandonment rate of users who fail to complete an application fluctuates between 50-75%. The average abandonment rate of users using START stands at roughly 12%, providing a proven ROI on your integration by increasing completed applications by up to 84%.

Assuming the low end of the average at 50%, a conservative estimate, lenders can increase closed loans by 76%. Let’s assume that a lender attracts 100 borrowers per month, the average loan is $200,000, and the profit margin is 600 BPS.

>>With a 50% abandonment rate, the lender will close 50 loans. This equates to $10 million in monthly loan volumes and $600,000 in revenue.

>>With a 12% abandonment rate, the lender will close 88 loans. This equates to $17.6 million in monthly loan volumes and $1.056 million in revenue.

In this example, the difference between START and an average digital POS application equates to $7.6 million in monthly loan volume and more than $450,000 in monthly revenue. Annualized, this renders $91.2 million increase in loan volumes and a $5.4 million increase in revenue. This example does not account for other ROI factors such as decreased origination costs, reduced overhead, loan officer productivity, and streamlined workflow. Moreover, if we assumed the high end of the average, the difference between START and an average digital POS application equates to $12.6 million in monthly loan volume and more than $750,000 in monthly revenue. Annualized, this renders a $151.2 million increase in loan volumes and a $9 million increase in revenue.

Q: What role does a digital point-of-sale application play in attracting Millennial homebuyers?

CURT TEGELER: You might be surprised, but a digital POS plays a vital role in attracting all borrowers. According to a study by the National Association of Realtors, 44% of all homebuyers began their search online and 95% used online websites to gather information at some point throughout the process, including 99% of Millennials and 77% of Silent Generationers. That said, the data also demonstrates that capturing the Millennial buyer provides the most robust and lucrative opportunity for lenders, and that digital is the key to capturing that opportunity.

Millennials make up about one-fourth of the US population, signifying a 77-million-person opportunity for the mortgage industry. As the leading edge of this massive demographic reaches its early thirties, they enter their prime earning years, start families, and buy homes. The vast majority of this 77-million-person demographic will search for homes and mortgages on their smartphones, tablets, and laptops, just as they shop online. E-commerce volume increased nearly 12% y/o/y from 2016 to 2017. Expect for that same trend to follow people shopping for mortgages.

Millennials in the U.S. wield about $1.3 trillion in annual buying power, making them a significant force in the home-buying market and mortgage industry. 85% of them use smartphones as their daily technology device, and 49% seek to buy their first home. The October 2017 composite forecast of Fannie Mae, Freddie Mac, and the Mortgage Bankers Association for 2017 mortgage origination volume is approximately $1.8 trillion. If Millennials compose 50% of this mortgage volume, and two-thirds of them apply online via digital applications, that represents $600 billion in digital mortgage origination. This number is massive. Better yet, it’s conservative.

When it comes to attracting younger borrowers, lenders’ digital platform poses so important that it can outweigh the impact of interest rates. Lender A might offer a mortgage at 4%, while Lender B offers it at 4.25%. But if Lender A fails to show up in search results or deliver a subpar digital experience and Lender B does, Lender B will win the borrower. Millennials feel most comfortable transacting via digital. They don’t go to the mall, they go onto their laptops and shop e-commerce platforms. That’s where an industry-tailored mortgage website factors in. Once online shoppers fill their cart, they enter the POS application. Yes, a mortgage POS is much more complex and information intensive than an e-commerce POS. But that doesn’t mean lenders can’t provide an easy-to-use mortgage shopping experience. Lenders leverage their website to gain digital traffic and attract more borrowers. An effective POS ensures that they convert their shoppers — or applicants — into borrowers.

Q: You consider yourself a “first responder” to real estate and mortgage. How are you a first responder to POS?

CURT TEGELER: In 1999, I provided realtors, especially the smaller ones, the ability to compete in the dot-com boom and seize the power of the internet. In 2008, the Housing Crisis left the mortgage industry in shambles. I was there, in the rubble. I didn’t just help clean up the mess; I started building. I created MortgageWare, a digital mortgage website solution equipped with a proprietary content management system and integrations to LOS’s, pricing engines, the whole bit.

I’m a first responder to POS, because, well, we created START to satisfy our clients’ demands. They had this awesome website that attracted the digital traffic they craved. The problem was, it didn’t result in the increased loan closures they hoped for. They needed more. They needed a better applicant-borrower process. So, we made START to make our clients’ transition to digital accretive to their top and bottom line.


Curt Tegeler thinks:

1.) Digital point-of-sale applications will dominate lenders’ cap-ex and investments.

2.) Integrations and automation will drive the next leg of the digital mortgage revolution.

3.) Despite rising interest rates, the housing and mortgage markets will post a solid year of growth as buyers rush in to lock lower rates.


Curt Tegeler is President and CEO of WebMax LLC. He is responsible for providing direction for action to all employees and business initiatives. Tegeler’s main responsibilities include communicating and implementing the company’s vision and mission; leading, guiding, directing, and evaluating the work of executive leaders; formulating and implementing the strategic plan; forming, staffing, guiding, leading and managing WebMax; evaluating organizational success; and represents WebMax in civic and professional activities.

Banking On Technology

As we have seen, technology does make a difference. It makes the mortgage process more efficient and these days lenders need to strive for maximum efficiency. We can also see the value of technology when investors start funding these newer industry players. For example, Roostify announced the completion of a $25 million Series B round of financing. The round included new investments from Cota Capital, Point72 Ventures, and Santander Innoventures, the venture capital arm of Banco Santander, as well as additional funding from previous investors JPMorgan Chase, Colchis Capital, and a subsidiary of USAA. The new funds will power the company’s ambitious growth goals, including a deeper presence in the enterprise space, rich product enhancements, and expansion into new markets.

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“We were immensely impressed with what Roostify has accomplished in the last four years,” said Bobby Yazdani, Cota Capital’s Managing Partner. “Roostify has evolved not only their own offering and product focus, but the market as a whole, helping the lending industry transform itself for the digital age. We’re pleased to be a part of that transformation, and look forward to seeing Roostify and the industry continue to move forward.”

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Launched in 2014 with the aim to speed up the mortgage process and eliminate paper-bound inefficiencies, Roostify has grown into an enterprise-class digital lending platform used by lenders across the US to accelerate, simplify, and reduce costs around the origination process. Roostify’s cloud-based, API-enabled, partner-friendly solution allows lenders to offer their clients a seamless, branded experience from searching to closing their home loan. With the additional resources provided by the Series B financing, company leadership plans to accelerate delivery of its roadmap and drive market expansion.

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“Four years ago, Roostify was a pioneer in moving the consumer home lending experience online. We sought to deliver an offering that we would experience ourselves for our own home purchases,” said Rajesh Bhat, co-founder and CEO of Roostify. “Since then, a digital strategy has evolved from an ambition to a business imperative for our customers. Lenders now realize the value of providing consumers with a transparent, mobile, and seamless experience to obtain a loan without needless stress-inducing delays and red tape. We have developed a solution that allows lenders of all sizes to give their teams a tool to digitally engage with clients and to bring the loan origination experience to the consumer.”

Roostify has made several recent moves to expand the platform beyond the core loan application and processing experience. The company recently announced an integration with LendingTree, which enables consumers to shop for a loan and then get that loan with their preferred lender in just a few clicks, and previously introduced the new Decision Builder tool to improve education for consumers and lead quality for lenders.

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

StreamLoan Integrates Mobile-First Digital Application With LOS

LendingQB (LQB), a provider of lean lending loan origination software in collaboration with San Francisco-based StreamLoan, the mobile-first Point-of-Sale (POS) platform, have come to market with a new solution to provide lenders with a fully automated digital system, creating a best-in-class lender, borrower, and real estate agent experience.

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As a result of this integration, borrowers, loan officers, lender support teams, and real estate agents are empowered to start and manage a 1003 application and loan file, automate the collection of financial documents, share the financial needs list and underwriting conditions, review, approve, and push documents directly into LQB, and collaborate using chat in real-time across mobile and desktop platforms – driving speed, education, communication, and accuracy into the home purchase process.

There are many “mobile friendly” applications on the market, however they fall short in delivering the native mobile app experience customers expect and demand. StreamLoan offers native iOS and Android while delivering a responsive web to cover desktop, laptop, and tablet users.

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This is a first-of-its-kind integration between an LOS and a POS. “Pronto by StreamLoan addresses the emotional friction created in the home buying process with a higher level of communication and transparency with our borrowers,” said Jason Madiedo, President and Chief Executive Officer of Alterra Home Loans. “Our loan officers & their teams can now service their clients with Pronto, while utilizing the full potential of LQB.  This integration allows us to get back to the human side of lending, which is what our industry has been waiting for.  It would have required us licensing products from several software vendors, integrating them, to even come close to what the StreamLoan platform delivers.”

“Lenders must deliver the best customer experience to compete.  Further, our customers can close more loans in less time with fewer resources,” said Stephen Bulfer, CEO and co-founder of StreamLoan.  “There is a reason the average cost of manufacturing a mortgage is almost $8800 today.  Through our partnership with LendingQB, lenders gain efficiencies in their lending processes, create consistent processes, and are equipped to grow their business,” Bulfer continued.

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LQB’s platform provides mortgage lenders with a holistic model for optimizing business performance. The core LendingQB LOS is a fully web browser-based system that manages the entire mortgage lending process intuitively and efficiently. StreamLoan Mobile Office extends this capability to lenders, further expediting the origination process and allowing interaction with borrowers and other parties to the loan.

“Every lender faces a unique business challenge that can be addressed with the proper technology,” said Tim Nguyen, President at LendingQB. “With a configurable LOS like LendingQB, lenders can streamline their processes to create operational efficiency. By integrating our advanced technology directly with StreamLoan, loan officers are now equipped to process more applications in a consolidated manner, while also creating a more transparent experience for the borrower and the referring real estate agent.”