Risky Business

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feature ORIGINATION Or ig i nat ion s e r v ic i ng Not Minor or Major Dallas-based Texas Lending has found a formula that helps it win on all playing fields. By Ashley R. Harris Costs of Compliance T he company uses customer data already stored in its LOS to build stronger relationships with clients. For example, Texas Lending uses Mortgage Returns' webbased CRM system to search for clients with high interest rates to let them know how much money they can save by refinancing. This approach not only increases revenue, but also reminds customers has learned during their consumer outreach. Ensuring that customers are happy is the next wave for the industry, and from Miller's vantage, the only way to do that is to keep a consistent line of communication open and active. Dedicated to Dialogue T exas Lending employs a multipronged approach to its client communication efforts. For one, the company uses a net promoter score, which uses customer feedback acquired through a survey to measure its efficiency and get a sense of overall customer satisfaction. The Dallas-based company also has a customer feedback center in its offices devoted to facilitating timely follow-up. These measures coupled with its new client lead system are giving Texas Lending the edge over other companies by helping ensure customer retention remains high. Instead of sending four or five daily leads to a loan officer, the company now has a system in place where leads are placed in a pool for loan officers to grab when they are available to best serve the client. The M Report | 43 se c on da r y m a r k e t The company predicts the growth will happen as a result of its increased focus on the consumer, a trend that will continue to grow industry-wide, according to Miller. "With all the new regulations coming out, many companies have provided better service to the government than they have to their customers," he said. "I believe staying engaged with customers is the definition of good service." the company is "actively searching for ways to save them money," Miller said. Treating clients with quality customer service and transparency is critical to any mortgage business's growth, and recent data shows it appears to be working. Texas Lending reports it saw mortgage applications increase by 50 percent monthover-month. Miller anticipates the same phenomenon will happen with other lenders as rates continue to stabilize. But what will continue to increase are the costs associated with compliance, and the ones who will ultimately pay the price are the consumers. Miller notes more companies are bringing compliance support staff in-house, driving up their margins in the process. This forces them to "charge consumers more and more to pay for the compliance necessities," he said. Still, consumers aren't viewing this trend as a necessarily bad one. They are seeing favorable rates and deciding to forgo the closing costs, opting instead for a higher interest rate with the knowledge that it will all balance out in the end. At least, this is what the staff at Texas Lending a na ly t ic s A s mortgage originators continue to work to find ways to thrive in the changing regulatory environment, one company is confidently batting its way through the varying challenges companies face in the industry. Texas Lending started as a small shop shortly after September 11, 2001. Since then, the brokerage, founded by Kevin Miller, has multiplied its six employees into 600 professionals who work primarily as consumer mortgage bankers. The company works primarily as an online originator through its website, It is currently closing mortgages in 10 states and expects to end 2013 with more than $1 billion in loan sales.

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