MReport May 2017

TheMReport — News and strategies for the evolving mortgage marketplace.

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10 | TH E M R EP O RT TAKE 5 M // How do you see the recent rapid advancement of technology impacting the mortgage industry as a whole? ANDERSON // The mortgage industry has historically been slow to adopt new technologies. It has only been in the last five years that we have seen true innovation when it comes to this industry. Big data, mobile devices, and high bandwidth are so commonplace, it would be crazy not to tap into these new advancements to streamline the mortgage process. You only have to look at Quicken Loans' Rocket Mortgage to gain a perspective. Rocket Mortgage's messaging states, "Push button; get mortgage." Quicken is utilizing consumer-fo - cused technology to help borrowers navigate the most important finan- cial decisions they'll ever make. According to Quicken, 80 percent of Rocket Mortgage users were first- time homebuyers, and their new technology platform cut 12 days off of the loan closing process. There is a reason Quicken Loans is a top retail lender and No. 1 in J.D. Power's Customer's Satisfaction for the past seven years. M // How can mortgage profes- sionals capitalize on techno- logical advancements to better support their businesses? ANDERSON // The loan officer has the biggest advancement op- portunity to help support their business. There has been an influx of loan officer portals and online tools to help these profes- sionals educate the borrower on their loan process. Education is the biggest concern to the borrower, especially those in the millennial category. Today, the loan officer and the borrower can collaborate in real-time via a mobile device on the advantages and disadvantages of a loan pro - gram. What used to take several face-to-face meetings can now be accomplished anytime and anywhere in great detail. M // Are there any concerns with the ability of the industry to adapt to these changes? ANDERSON // Recent advancements in the mortgage industry are from new vendors coming into the market with brand new software built with the latest and greatest technology. The biggest concern is for the legacy systems that dominate the market, specifically loan origination systems (LOS). The average mortgage loan spends about 80 percent of its time in the LOS being processed, underwritten, reviewed for compliance, and closed. Updating an LOS to the newest technologies is a near impossible task. That is why you see several third-party add- ons to LOS to help bridge the functionality gaps. M // Are there any technologies that other industries have adopted that mortgage professionals should take note of? ANDERSON // Smart kiosks, virtual loan officers, and gamifica- tion are a few technologies being used today that should be adopted by the mortgage industry. Smart Today's technology offers mortgage professionals unparalleled power in both serving and connecting with their customers. Though some industry decision makers are finally taking notice, there's still plenty of room to grow. From virtual loan officers and smart kiosks to full-on gamification, tech is opening doors many never knew existed. Craig Anderson is the Director of Client Integrations for Genworth Mortgage Insurance. He boasts more than 23 years' experience in the mortgage industry, with 15 years of them focused on technology. He holds five Microsoft certifications. Enhancing Experience kiosks today are being used by banks to offer banking services via teleconference versus face-to-face, allowing branch offices to be much smaller and run leaner. Utilizing these kiosks would allow the loan officer to maintain that personal touch but still add in the technol - ogy advancement to increase the customer's experience. Virtual loan officers can be added to consumer portal software to allow borrowers to ask questions, get advice, and speak directly with a loan officer. Most borrowers, even millennials, want that personal touch when applying for a loan. Gamification is a new concept being utilized for completing online tasks. Human nature is to want something in return for completing a task. I was just at a conference where I downloaded their mobile app and there was a contest to see who could utilize social media the most about this specific conference. Each post was worth points and there was a leaderboard to see who was winning. I was surprised to see the amount of people who were actually engaged in this contest. This type of thinking can be used by consumer portal technologies that award points for certain tasks completed during the loan process. Engaging the borrower in a way that they want to complete the application, upload docs, and share experience on social media could all be ways to earn points, and those points could be used for a free credit report, appraisal, or a credit toward the closing costs. M // Is there a way technology can be used to reach new borrowers? ANDERSON // Most mortgage loans today start with the consumer researching rates and programs online. Reputation is one of the biggest factors when a first-time homebuyer is searching for a loan. Having a great online reputation will drive more business. Technology helps with this reputation (good or bad). Great technology, both internal and external, will give the borrower a great customer experience. They will then use social media technology to share this experience with their friends and family. the What can tech do for you?

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