TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/868742
66 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION A Personal Touch While the importance of digital brand establishment and social media engagement is paramount when marketing to millennial borrowers, there is still a need for quality customer service and in-person interaction. Ellie Mae's research indicates that while many millennials like to begin the loan process online, they prefer to finish with face-to-face communication. This suggests lenders need to have a seamless transition between on- line engagement to good old-fash- ioned personal customer service. For this reason, abandoning traditional forms of communica- tion and customer outreach in favor of a completely digital model doesn't make sense. A chatbot can only take a relationship so far. Developing online resources that complement and enhance real-life consumer interaction is the best recipe for success. At the end of the day, millennials will be the ones driving the housing market. When it comes to market- ing to this group in an increasingly digital world, it's worth getting right. Castle & Cooke Mortgage, LLC is based in Draper, Utah. Deborah Speed is the Marketing Communications and Public Relations Manager. Her primary responsibilities include handling internal communication needs, as well as interac- tions with the community and media focused on enhancing the company's public image. Jake Tesch is the Digital Marketing Manager. He manages Castle & Cooke Mortgage's digital marketing initiatives, plus the company website, social media channels, and other online platforms utilized by the company. Implementing Innovation NEWFANGLED PRODUCTS AND PROCESSES IN THE MORTGAGE SPACE ARE ADVANCING AT A FAST CLIP AND PLAYING A FUNDAMENTAL ROLE IN TRANSFORMING THE CUSTOMER EXPERIENCE. By Sandeep Hinduja TENNESSEE // No doubt, it is critical to solve for the cus- tomer experience as it can lead to greater returns, better customer engagement, and productivity gains. Innovations, such as web portals and apps, have already accelerated production efficiency by enabling the borrower for self- service. If front-end innovations are driving back-office efficiencies, then we must allow ourselves to imagine the behind-the-scenes im- pact that operational innovation will have on customer experience transformation. Beyond customer experience, innovating for the sake of your operation is also worthwhile; operational innova- tion done right can accelerate timelines, simplify processes, im- prove origination quality, engage your employees, and reduce costs. By taking a broader view of the role innovation plays in the mortgage industry, lenders will be able rethink how lending is done and create new processes, tools, and technologies. Here are four reasons to bring your organiza- tion along for the innovation ride: Process Simplification If you've been working in the mortgage industry for a long time—or for just a single day—you already know that the business of originating loans isn't exactly simple. It is often complicated by regulation, data, documents, and timelines. Innovating new ways to simplify and accelerate some of the more cumbersome processes is one of the biggest opportuni- ties for the mortgage industry. While there have been significant reductions in days-to-close and noteworthy advancements in process automation, there are still ample opportunities for improve- ment around process simplifica- tion, hyper-automation, robotics, and artificial intelligence. Until originating a mortgage is as easy as originating an auto loan, the mortgage industry must continue to aggressively seek out oppor- tunities to simplify back-office processes within the mortgage value chain. Innovation for Supply Chain Optimization The mortgage industry has an incredible ecosystem of business- es, partnerships, and third-party service providers. These providers often contribute niche expertise on a specific aspect of the mort- gage value chain. However, unless lenders are integrating quickly and seamlessly with their provid- ers, there will always be oppor- tunities for innovation. Luckily, innovation to streamline the mortgage industry supply chain is already taking place. Plug-and- play APIs are rapidly becoming the new way for loan-origination technology platforms to enable lenders to easily add and remove new services to ensure they remain competitive in the emerg- ing mortgage market. In addition, more lenders are implementing collaboration tools to ensure complete visibility into their service providers' involvement, including greater coordination for appraisals, title and closing, better reporting and metrics, and faster time-to-close. A streamlined sup- ply chain translates to greater cost savings, faster cycle times, fewer setbacks, and enhanced customer happiness. Innovation for Customer Analysis and Underwriting Underwriting has certainly evolved over time, but the opportunity for even greater change is still ahead. Significant advancements in technology and social media—most notably, big data—are set to change the game. Unstructured data and data derived from previously unmined sources such as social networks, e-commerce and buying patterns, business and banking data, PDF document extraction (OCR), elec- tronic devices, and the internet of things (IOT) present a significant opportunity to accelerate under- writing and improve accuracy. The application of big data and analytics for risk analysis will enable lenders to project forward the performance of a loan by gauging borrower behavior and the ability to pay over a long-term period. Moreover, big data inno- vations that will improve access to data will eliminate long wait times for information and help lenders tailor their solutions and processes to meet a unique bor- rower profile. There is no limit to the benefits of big data, but the main ones include precision in underwriting, fast turn times, delivery of tailored products and processes, and ultimately, greater profitability. Employee Engagement By redefining "customer" to include internal stakeholders and employees, lenders will be able to improve overall staff engagement and enthusiasm, which will ultimately improve customer service and drive productivity for the lender. As lenders move forward in selecting technology and tools or innovating new approaches, it is critical to keep in mind how the innovation will impact the person doing the work. Will adopting a new web portal or mobile app require them to manage multiple disparate platforms or will it integrate seamlessly? As the millennial generation is entering the workforce in droves, lenders with a modern tech-driven origination approach will successfully attract and retain new talent, while driving the type of excitement that will lead to new contributions and innovations. As customer-facing technologies and fintech solutions gain popularity, it is important that the mortgage industry recognize the need for balance. There is a symbiotic relationship between operational innovation and customer innovation. By broadening our perspective and identifying the impact that back- office innovations can have on the customer experience and vice versa, the mortgage industry will be able to connect more dots and create more connections so that one innovation will inspire another, ultimately shaping a new mortgage landscape. Sandeep Hinduja is a director at Wipro Gallagher Solutions, a Wipro Limited company based in Franklin, Tennessee, offering end-to-end technology products and services for retail, wholesale, correspondent, and consumer lenders. Hinduja has more than 16 years of experience developing product-growth strategy and consulting with clients. ORIGINATION LOCAL EDITION