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Lending in the High Tech Age

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cover story "Acceptance of online loans is generational. As younger generations mature, online transactions will increase." —David Norris, Greenlight Loans amount over the 30-year life of the loan. With online lending, they are able to become more aware of what they are buying." The convenience of online lending becomes a selling point for acceptance. "Consumers are frequently surprised to learn that they can sign documents online, eliminating the need to drive to an office somewhere to accomplish this," Norris explained. "As familiarity with the processes and benefits of online transactions increases, the process will grow." Norris feels that acceptance of online loans is generational. "Older people may feel uncomfortable with using technology and prefer face-to-face contact, which we are glad to provide," he said. "However, younger generations seem to be more familiar with and seem to prefer online communication. As younger generations mature, online transactions will increase." In addition to the convenience and security offered, Norris said his company's goal is to "achieve 100 percent customer satisfaction." To ensure this, all of Greenlight's loan consultants undergo an intensive 30-day training program and are required to attend ongoing classes to improve their knowledge and efficiency. "We know we can find the right loan with the right pricing to fit each customer's needs, but in the end, customer service is what matters," he said. Oregon Credit Union Makes Its Mark I n response to members' preferences for more high-tech online services, in 2012, Rivermark Community Credit Union in Beaverton, Oregon, closed three of its branches. The savings realized from those closures was reinvested in more sophisticated technology for online lending and other services. "We strive to be on the front edge of technology to make it easy for our members to apply for loans and conduct other banking activities," explained Jeff Miller, Rivermark's mortgage manager. "As an example, we were the first credit union in Oregon to offer mobile deposits." Miller says the credit union is experiencing rapid growth in online and mobile banking usage, as members continue to change their behavior from in-branch to remote access options. Rivermark is located in the Portland metropolitan area and has more than 65,000 members who live or work not only in that area, but also in one of the 11 counties throughout the state. Organized in 1951, Rivermark was originally made up of Safeway employees, and in 2004, it was converted to a community credit union. Rivermark is one of the top 10 credit unions in terms of assets in the state of Oregon, according to Miller. In 2012, the credit union processed more than 1,000 mortgage applications and approved more than $92 million in mortgage loans. Most mortgages are sold to Fannie Mae although the credit union continues to service members' payments. Shorter duration mortgages, such as its popular 10-year loan, are held on its books until maturity or when paid off. Miller believes that a lot of people may be intimidated by face-to-face interactions, especially when applying for a loan, so they may prefer to arrange for a loan online. "More and more, the first point of contact for mortgage shopping starts online," he explained. "People want to investigate for themselves and then make a decision. They also like the convenience of receiving loan approval online and the ability to sign loan documents with an e-signature at home." Like other lenders, Miller believes it is imperative to keep up with the technology demands of today's tech-savvy society. Recently, Rivermark installed a new B+H Mortgagebot software platform for lending that has transformed its business. "About 43 percent of our loan applications come in online," Miller said. "We previously had an online loan app that wasn't easy to use and resulted in a lot of incomplete and abandoned applications. Now we have more completed applications." In fact, he says that within 45 days after going online with the new platform, the number of completed applications increased 20 percent. "One of the features in the new system is a function that will alert us if people are having a problem in completing their application," he said. "Then we can help them while they are online." Another benefit of this new system is that all loan transactions have become completely paperless. "We have a very thin collateral loan file that we have to keep, but 99 percent of our loans have no paper," Miller said. In addition, another great feature of the new platform is that it is Web-based, which provides easy and secure access from any location. "Rivermark's mortgage officers can now work wherever there is a Web browser," Miller said. "Other platforms require being in a network or installing a virtual private network into your own system. Now we can access this system securely from almost anywhere." "As for the future of online lending," Miller said, "the momentum can't be stopped. Online services and transactions are cost effective and provide our members with the convenience and access they prefer." "Because of our technology, we close most loans in 30 days or less." —Regis Hadaris, , Quicken Loans The M Report | 19

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