TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/933792
28 | TH E M R EP O RT FEATURE 28 | TH E M R EP O RT simple questions and provide the lender with instant access to all the borrower's financial informa- tion. However, communication is extremely important for this pro- cess to work effectively. The good news is CRM technology empow- ers lenders to define and create unified messaging throughout the loan process, either through email or text. All communications can be reviewed and approved by the lender's compliance department and saved for future audits. This reduces the costs associated with compliance, which can then be passed on to the borrower. The best CRM systems go further by providing lenders even greater control. For lenders that conduct business in more than one state, for example, CRM tools can automatically include the correct business disclosures at the bottom of every email or letter, depending on the borrower's location. They can also adjust the messages depending on when and how many times a borrower has been contacted, or suggest products unique to that borrower. When lenders can define their messaging and workflow and have access to a full audit trail, they will be at an advantage not only when it comes to generating new business, but also in ensuring compliance. Petal to the Metal: Increasing Sales Speeds S peed is the cornerstone of any effective sales strategy. In today's highly competitive mortgage market, the first lender to contact, develop, and nurture relationships with a borrower has the best chance to turn that lead into a closed loan, and the lenders who do this consistently are the ones leading the market in volume. That means the CRM system a lender uses must be fast. For example, in today's competi- tive market, sales leads must be quickly distributed to the right person based on their skills and availability, and every customer should be contacted immediately. The CRM software a lender uses must at least do these things. So how fast is fast? InSellerate has conducted research studies to identify the speed to contact mortgage lending companies. Among other things, the study found that over 75 percent of con - sumers expect a call within one hour of an inquiry, yet around 65 percent of online mortgage inqui- ries never receive a response. This research also showed that calling a customer in the first hour after initial contact versus after two hours increased the chances of a successful contact by 700 percent. Sound crazy? Keep in mind that today's connected consumers are far less patient than they used to be. They don't have to wait around for a lender to call them back when they can find another lender anytime, anywhere—even on Twitter or Facebook. If you can't respond to bor - rowers quickly, it's game over. That means your system must be fast in multiple ways—that is, it should provide timely and auto - mated communication through phone, email, or text. It should also help loan officers follow up with borrowers immediately after a contact is made, either by an au - tomated trigger, event-based email, or text messages, or initiating a follow-up call. Staying in front of the customer is that critical. The right technology can help loan officers manage leads so that sales teams call back borrowers within minutes or even seconds. It can take the guesswork out of pipeline management, with de - fined workflows and lead prioriti- zation from sales to processing. It can also manage all communica- tions for a lender's business, from initial contact and engagement with a borrower, to taking the application, processing the loan, post-closing, and customer reten - tion. If the lender is relying on a third party for CRM technology, that vendor will be committed to improving their technology and internal systems. Until recently, most lenders looked at sales and compliance as two separate issues, but technology has flipped such thinking on its head. The latest CRM systems help integrate compliance into the sales process, so lenders can quit worrying and loan officers can sell. CRM can help lenders stay in control of all communications and save all records in case of an audit. It can also help speed up the sales process so lenders can sell more loans quickly. All of this lowers a lender's costs, which can be reinvested back into sales and marketing. Fortunately, more lenders are starting to understand this and are leveraging technology to bring compliance and sales under the same umbrella. That's good news for the lender and the loan officer, who can focus on doing what they do best—selling loans. It's also good news for the consumer, who benefits from a simpler, faster mortgage process. And satisfied borrowers tend to be repeat customers and recommend their lender to friends and family. What more could you ask for? JOSH FRIEND is the founder and CEO of InSellerate, a California- based mortgage CRM provider that helps mortgage companies maximize their sales leads and convert them into closed customers. For more information, visit InSellerate.com. "CRM technology empowers lenders to define and create unified messaging throughout the loan process, either through email or text. All communications can be reviewed and approved by the lender's compliance department and saved for future audits. This reduces the costs associated with compliance, which can then be passed on to the borrower."