Monthly Mortgage Summary - Department of Banking and Finance
How to Win in Mortgage Banking
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Transcript of How to Win in Mortgage Banking
Copyright © Silanis 2012
E-Mortgage Success Story
How to Win in Mortgage Banking
Mr. Bob Catlin, CEO & Founder, Signature Mortgage Corporation
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About Signature Mortgage
Bob Catlin President & Founder Signature Mortgage An Inc. 500 Company
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About Signature Mortgage
• Regional mortgage provider and Inc. 500 company
• Servicing Ohio and Michigan• 15 employees generate $6M in
annual revenues• $2.5B in residential loans since
company inception• Our competitive edge
– State of the art e-Commerce technology– Exceptional service + lowest rate possible
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The Changing Industry
• Existing mortgage crisis– As of 2007, falling home prices, poor economy,
job loss and panic– Record level of foreclosures and short sales– Mortgage graveyard – over 800 mortgage-related
financial institutions have gone under– New purchase business at record lows– Fewer customers and less revenue per loan
• Internet lead generation– Tens of thousands of leads generated daily– Consumers searching terms and conditions– Cut-throat pricing and sensational guarantees
“Must compete for a smaller pool of
qualified customers and quickly upgrade technologies to win Internet consumer
leads.”
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The Changing Consumer
Borrowers have access to better mortgage information online.
Mortgage web activity is no longer a luxury. It’s a necessity.
Competing on rates alone isn’t enough.
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Challenges of Delivering Exceptional Service
32 documents (and growing)
Correct execution is imperative (to mitigate risk)
• Loan application, disclosures
and other documents must be reviewed and signed
• Customer must provide supporting documents (e.g., proof of employment, insurance, revenue reports, etc.)
• Failure to comply with regulations
leads to fines• Failure to properly execute
transaction leads to legal disputes• Poor customer experience if
documents must go back for correction
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Problems with Paper Processing
• Missing documents, signatures, data, initials, etc.
CostlyRisk ProneError Prone
• Processing errors lead to regulatory fines, legal disputes, damage to reputation
• Paper, shipping, QA, scanning, data re-keying, follow-up calls to customers, etc.
• Customers must travel to the documents (e.g., retail branch)
• Documents must travel to the customers (e.g., home/work)
CostlyInconvenient
• 7+ days to complete a mortgage application
• Increases shop-around and drop-off risks
• 45+ days to close the mortgage
Inconvenient Time Consuming
How going paperless affects rates & revenues
• Rates fluctuate daily• Most providers guarantee rates 30 days
– Customer will not get promised rate if it takes 45-60 days to get to closing
• Shorter rate locks benefit everyone Ex: $200,000 loan @ 3.50%, 30-year fixed– 60-day lock = $3,000– 45-day lock = $3,400– 30-day lock = $3,900– 15-day lock = $4,500
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Moving Mortgage Processing to the Web
• Electronic signatures are key– Saw the benefits of e-signatures at Quicken Loans
• Signature Mortgage’s challenge– Limited IT infrastructure, budget and resources– Could not invest in the large enterprise platform
solution
• e-SignLive and IBM Smart Cloud– Cloud-based services: no s/w or h/w to purchase,
integrate, deploy or update– Subscription-based model: licenses for staff –
customers use free of charge– Quick time-to-market: up and running in 48 hours
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Executing the Mortgage Application with e-SignLive
• Co-borrowers can be in different locations
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Executing the Mortgage Application with e-SignLive
Customers ReceiveEmail invitation1. Logs Into Service2. ESIGN Consent3. Guided Review
Process4.
Visual SigningPrompts5. Loan Officer Notified
When Completed6. Verifies & Closes the Signing Session7. Secure Copies
Delivered8.
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Impact on our Business
• Doubled revenues in the first 6 months of 2012• Reduced application processing time to less than 24 hours• 99% of all home loan applications
completed online• Decreased processing costs by
over 85%• Enables loan officers to spend
more time selling
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Impact on Staff
• Getting internal buy-in was key– From concept to beta testing, deployment and launch, staff was on-board
• Improved loan officer morale– Technology as competitive differentiation– Communicate with clients with confidence
and impact– 99% of mortgages now e-signed– Much easier to recruit new staff
Loan officers believe they can compete with
national players.
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Impact on Customers
• Creates a sense of urgency• Less likely to shop around• No longer make changes• Creative, fun and hassle-free• Relationship begins on a strong
foundation• Prevents competition from
sneaking back into the picture
99% of clients now e-sign online.
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Unsolicited Customer Feedback
“My husband and I usually work with our local bank for financing and refinancing our home loan. Signature Mortgage offered us better terms and conditions, but most of all we were sold on their e-sign capabilities. We have careers and kids and we just couldn't find the time to go to the local bank branch between 9am-5pm. This was the fastest and smoothest process we have experienced.”John and Kathy MitchellCincinnati, OH
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Unsolicited Customer Feedback
“I was intrigued by Signature Mortgage’s e-sign technology and was a little skeptical in the beginning. Wow! Now this is how applying for a home loan should be! Easy, fast and hassle free. Our loan was closed in 18 days.
… our local Credit Union couldn’t believe how fast everything was completed. They are taking 45 days or more! Thanks for everything.”Mark BishopCleveland, OH
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Unsolicited Customer Feedback
“I was very impressed with your e-sign capabilities, timeliness and organization of the entire process. Great job! I will definitely recommend you to my friends and family. Unbelievable technology.”Steve TempleLiberty TWP, OH
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Key Takeaways
Consumer intelligence and expectations have dramatically increased.
Mortgage web activity is no longer a luxury. It’s a necessity.
Reducing processing and underwriting time is critical to thriving.
Most only consider the tangible, bottom-line benefits.
The intangibles ensure you achieve ROI.
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THANK YOU