The Benchmarq

The Silver Bullet

2009-05-01T13:33:32Z

Today marks the day that HVCC compliance is required by all mortgage companies, and I am ecstatic. This will surely fix the housing market's woes and streamline all mortgage processes. This idea is brilliant, in that, it takes an already flawed mortgage process and asks, how can a regulation make this less efficient, how can the mortgage process become more convoluted? By the way, I am being facetious.

I have an inkling that this is only the beginning of new regulations that will make existing as a mortgage company, especially a broker, more difficult. The questions is, will this work? HVCC compliance assumes that part of the mortgage melt down should be blamed on mortgage professionals swaying appraisers to inflate a home's value to make their deal work. Uh...what about legislation passed down loosening lending guidelines? What about a 580 credit score getting 100% financing without proof of income? I could keep going, but honestly there's no need. The silver bullet has arrived -- the Home Valuation Code of Conduct. So, celebrate this day, for you all have been saved.

HVCC is a headache, but the LoanMarq application is the simple, cost effective solution for mortgage companies to comply. An appraisal manager user type has been added to the web-based community within LoanMarq. The appraisal manager will now coordinate all home valuation aspects of the mortgage transaction, while fulfilling the HVCC regulations. LoanMarq allows mortgage companies to handle HVCC compliance in house without outsourcing this function to a third party: saving time and money, while retaining valued, appraiser relationships. This is truly the silver bullet, without the sarcasm.

Lip Service

2009-03-12T18:52:27Z

Recently, I have attended different association meetings discussing what real estate professionals want from mortgage lenders and vice versa. In my ten years of association with both industries, I am left dumbfounded that the topics and the points made in these discussions remain the same. Can it be that that mortgage and real estate professionals are so entrenched in their ways, that they just get together to discuss how to better serve one another, and apply nothing they learned? Real estate professionals will say that better communication is needed and in order to earn their business mortgage people better prove that they will be offered top shelf service. Faster pre-approvals, no closing delays, returned phone calls, prompt and frequent status updates, and on and on and on and on. If I had a penny for ever time I heard the standard list of how to better serve the mortgage and real estate communities, I would have more money than the recent stimulus package passed by the U.S. government. I am beginning to think that these meetings are meaningless venting sessions. For example, I attended one well known association meeting where a large real estate team could be asked any question pertaining to how to better service them and their customers. The team gave the customary answers we have all heard infinite times. The following day I followed up with a mortgage lender who attended the meeting and asked this person if they learned anything valuable. They said the things discussed were things that everyone already knew. My thoughts exactly. So, why not change? If you already know all things one needs to do to succeed, why not implement them? I hope it's not all lip service from both sides of the table.

Here's the good news. Meeting all of these service objectives is now extremely easy. These industries can finally start discussing new topics, because LoanMarq accomplishes all of them, automatically. Check it out. It truly is the new service BenchMarq. Although, it could be that these industries just like to complain about how terrible the other is with doing their job . Maybe they'll be unwilling to integrate LoanMarq because it will end all the meetings, due to removing the one topic of discussion. Maybe it is all lip service. We'll see.

The Vision

2009-01-30T15:51:28Z

I want to lay out the vision I have for service in the real estate and mortgage industries. I am passionate about this, and it is our company's goal to accomplish what I will lay out here. Articles like the J.D. Power and Associates survey are very insightful, in that they let us know exactly what customers want. However, if you look over the past decade, surveys like this have all echoed the same sentiments. Mortgage consumers grade mortgage service below par. Ready for the thesis? Here it goes.......The mortgage industry requires marked increases in transparency, accountability, and efficiency in order to fix its service flaws. Increased transparency, requires accountability, and leads to efficiency.

Transparency

This is the most important of the 3-pronged, service overhaul. Total transparency is mandated. The customer knows everything, sees everything, can review everything, and this can be done anytime the customer wants. Credit reports, mortgage disclosures, appraisals, closing documents, settlement statements, etc., every document and disclosure at the cusomer's fingertips, 24 hours a day, 7 days a week. This new transparency will restore trust and develop a new standard by which customers should choose their lender and rid the industry its bad guys. I have met with some mortgage people who fear giving their customers information. That some how the customer, once armed with this information, will use it against them. The name of the new game is education, over-disclosure, and communication. This process can be automated with technology {I know a great product :)}. This will create true customer loyalty. Customers will even pay a higher margin for service like this -- it has been proven. To make the transaction transparent, accountability is paramount.

Accountability

This is the part a lot of industry professionals hesitate to implement; however, if implemented, will lead to a real, service revolution. All parties in the transaction, from borrower to insurance agent need to be held accountable for their fuction inside the process. This includes the quality of work and the amount of time to fulfill. When all parties can rely on the other parties to complete their function inside a defined criteria, the service experience becomes exponentially better. Quality, turntime, disclosure, education, and communication should all be part of the accoutability criteria. How do we know which vendors are performing at this level? Simple, LoanMarq makes certain everyone is held accountable to this standard.

Efficiency

Efficiency is basically better work flow practices. It can only be elevated when every minute detail of the transaction works in unison toward the same goal. Inside a mortgage transaction, this means moving a loan from application to closing seamlessly, by collecting all the necessary documentation as easy as possible. A mortgage relies on many vendors working in chorus in order to complete the transaction. Making this process more streamlined and efficient has been the goal of mortgage professionals for years. The transaction needs to have standardized turn times. These turn times need to be guaranteed by all vendors and tracked to find which vendors perform consistently. Those that do, become part of your referral network. Increased efficiency will make sure that borrowers have time to review all documents and disclosures, become educated during the process, and avoid costly delays.

Efficiency, backed by accountability, inside a transparent transaction, will lead to a service standard never seen before in the industry. We will create a community of professionals the market will recognize as leaders. Where customers will come because they know that the new standard has been developed to better serve them and their interests. This is not a dream, but a current reality when LoanMarq is implemented.

Seriously?

2009-01-27T14:42:04Z

This article will deal with the two largest pet peeves I have uncovered during my stent in the mortgage industry. In all my years as a mortgage originator, I made sales calls on hundreds of real estate agents. I say this to legitimize the following statements, and to say that these are real experiences.

The single, most surprising fact I take from all of those meetings, is most real estate agents do not care who their clients go to for their lending needs. I don't understand. The mortgage company is the most integral piece of the entire transaction. It will difine the customer's overall service experience. Real estate agents must realize that customers left to their own devices will make a mortgage decisions based entirely on price. This leads to bad service, which reflects poorly on your brand. Agents need to find solid lending partnerships with lenders who offer the client the highest level of service. It may take some time, but once this is in place you will see a marked increase in your customers' experience, which will positively affect your brand.

Another fascinating statement I have heard many agents say, is they don't want to know what's going on with the mortgage. They'll just meet everyone at closing. Are you serious? How can agents allow their customers to walk the road from contract to closing without key insight from their agent. Even if it is not required, those agents who are involved in every piece of their customers' transaction will offer better service and will sell more properties. Real estate agents need to learn the ins and outs of the mortgage industry, in order to advise customers toward solid mortgage decisions. Assist customers during the process to avoid pitfalls, so that the mortgage closes on time. I talk a lot about tangible service differences between you and the competition, but it is paramount to success. Now more than ever, the industry needs the New Service BenchMarq.

User Questions and Discussion

2009-01-19T18:09:41Z

Existing or potential users can use this area to post questions, feedback, success stories, wanted additions, etc. relating to the LoanMarq product. Simply sign in and post a comment. We look forward to hearing what you have to say.

Loan Processing Conundrum

2009-01-19T16:55:36Z

Today, mortgage companies have found themselves in a very precarious position. To cut expense, some companies have had to layoff processing staff. Due to the current increase in refinances, lenders find themselves with higher mortgage volume, but without enough processors to efficiently manage workflow. Thus, management is faced with the following conundrum: increase payroll or decrease turn times. The phrase "feast or famine" always fits the mortgage industry. It seems the industry needs to find a way to increase efficiency, while minimizing expense. A complete overhaul of the mortgage process is required to solve this conundrum.

For the most part, the mortgage industry's transaction workflow is inefficiently. The amount of phone calls, emails, and faxes mortgage people manage for a single loan is enough to make anyone's head spin. One perfect example of these inefficiencies are underwriting conditions. Today's loan processors have seen a rise in the amount of conditions their loans are receiving from underwriters. This is due, in part, to more stringent guidelines put in place to mitigate the risk of mortgage defaults and delinquencies. Processors are charged with the unenviable task of collecting these conditions from customers and vendors to satisfy underwriting guidelines. In lies the inefficiencies of the mortgage transaction. Processors make numerous phone calls and send countless emails, only to receive incorrect or incomplete documents in return. The frustration mounts and the stress heightens, eroding customer service and causing delays. In turn, causing referral sources to become disloyal and potential, repeat business is lost. Three days late the file is miraculously cleared to close, but the fees are higher and the interest rate has changed, because the lock expired. In order to save the deal, the loan officer takes a commission hit to correct the rate and fees. The loan closes. Tomorrow, the process begins anew. Sound familiar? Ever wonder why processors like to go out back and break things? There is a better way.

There is a software application available that rids the transaction of inefficiencies by creating a web based, collaborative community. Everyone integral to the mortgage process meets on the web to gather instructions to complete their function and receive loan status updates. The web application automates the entire mortgage transaction. All customers, vendors, and mortgage personnel within the mortgage transaction instantly know what is needed, when it is due, and when it has been received. As these milestones are achieved, emails and text messages are automatically sent. Phone calls for document hounding are a thing of the past. Stress, frustration, and high blood pressure are replaced with transparency, efficiency, and accountability. Processors can now take a deep breath and process twice the loans, in the same amount of time.

For those companies ready to face the challenges of today head on and have vision and understanding of what is needed to succeed in the future, the solution has arrived. LoanMarq is the web based mortgage tool that streamlines the entire mortgage process. Never have mortgages more efficiently moved from application to closing. Never has there been this level of communication, transparency, and accountability inside the mortgage process. By this standard all service will be judged. LoanMarq -- The New Service BenchMarq.

Tangible Service Difference

2009-01-19T16:53:13Z

On sales calls to potential referral sources and customers, mortgage professionals are caught sparring with competitors by offering inflated promises. When their competition says, I'll call you back within 5 minutes after receiving your voicemail, or I'll get you a preapproval letter in 15 minutes, they say things like, you'll never get my voicemail, I always answer my phone, or I can get everyone approved just send over the contract. Over promise, under deliver. Really what's going on is all mortgage people do basically the same things. They offer the same products, their mortgage goes through the same processes to get to the closing table, and they offer the same price, unless they can get a manager to take a loss on the loan. Due to the industry becoming more standardized, mortgage professionals are all the same. Thus, they are forced to raise expectations regarding service levels to unattainable highs. The mortgage professional needs a product, a solution that tangibly sets them apart from their competition. Something they can sit down and show potential referral sources and borrowers, that based on this product, this solution they will not go anywhere else for their mortgage needs. LoanMarq is the product and the solution that brings all of this to the table and creates the new service BenchMarq for the mortgage industry. Mortgage professionals that realize that it will take true, tangible, transparent service to succeed going forward, will integrate LoanMarq. There's nothing to lose, it's free for 30 days, and if it is not the best service tool in the market today, cancel and pay nothing.

Transparent Accountability

2009-01-12T16:23:09Z

Ever shopped for a mortgage? It's a daunting task. The customer never knows whom they can really trust. It comes down to a leap of faith really, based on price. Mortgage people have struggled for years to find ways to differentiate themselves in a crowded market. Still, with all their efforts, inevitably it has come down to price. This is dangerous, because when it's all about price, payment, or the amount of cash out a borrower can get, the predators sell loans to borrowers that aren't in their best interests. In fact, borrowers get loans that are harmful to their financial wellbeing. Thus, the industry endures the subprime mortgage meltdown and a huge economic disaster. Good lenders that have their customers' best interests in mind have a tough time setting themselves apart from the cons of the industry, because everyone says the same things when pitching their product to potential customers. Until now. LoanMarq is the solution that changes the focus from price to service. Not just pithy words and clichés about service, but real, tangible service based on education, disclosure, communication, accountability, transparency, and efficiency. LoanMarq will rid the industry of the bad guys and allow the good guys to prosper. The revolution is here, mortgage predators take notice, your days are numbered.

Action

2009-01-08T18:56:22Z

Real estate professionals, you are now officially on notice. This is your call to action. For too long you have allowed the mortgage industry to negatively effect your brand. The real estate transaction your customer experiences depends heavily on the service level provided by the mortgage industry. Imagine if there was a BenchMarq by which to choose your lending source. This BenchMarq would guarantee a specific level of service you and your client would experience during the transaction. Picture transparency, accountability, efficiency, and communication as your contract moves seamlessly to the closing table. LoanMarq is the solution that makes all of this possible. It brings the service in the mortgage industry to a level once only dreamed. Real estate professionals, it is time to measure your lending sources by "The BenchMarq." Does your lender use LoanMarq to facilitate your transactions? If not, demand it. The revolution in real estate is here, LoanMarq -- The New Service BenchMarq.

Broken

2009-01-05T15:53:20Z

People don't have to search far to figure out that the mortgage industry is broken. Every news publication runs stories almost daily to this affect. There are many industry experts looking backward to see what went wrong and they all have well phrased opinions on who's to blame. It's time to stop looking backward and time to look forward to find ways to solve the foundational problems with the industry. The mortgage industry is fundamentally broken. The problem pervades the entire mortgage transaction. What's the problem? Unrealized promises mortgage people have made regarding customer service. Mortgage people relentlessly pitch to the market they offer the highest customer service, concierge level service, or white glove customer service. These taglines have been pushed so hard without any clear difference between them and their competitors, that customers don't believe any of it. After the subprime mortgage debacle, mortgage people should have received a wake up call. Customers are demanding service and the leaders that really offer it at a high level will succeed.

Mortgage people need to tangibly raise customer service through education, over disclosure, and communication. J.D Power and Associates in a survey released October 20, 2008 said that customers are "committed to their lender when the loan officer takes the uncertainty out of the mortgage origination experience by setting expectations, proactively communicating and maintaining personal contact with them during the loan process." The survey also states that customers "are more satisfied when status updates are provided" and "last-minute requests for information are limited." Mortgage people cannot continue status quo when their potential customers are screaming for change. The writing is on the wall - innovate or exit.

The BenchMarq

2009-01-02T15:08:10Z

Welcome to The BenchMarq, a weblog by Sthenia Solutions. It's the new BenchMarq by which all service in the mortgage and real estate industries will be judged. It's candid, bold, brutally honest, and it's the tough love the industry needs amidst the present crisis it faces. We are passionate about creating a new service BenchMarq for the mortgage and real estate industries. It is time that mortgage professionals realize their fudiciary responsibility they have to their customers to educate, disclose, and communicate with them like never before. Here, we will discuss the revolutionary web application, LoanMarq. It's the catalyst to change how mortgage and real estate transactions are facilitated and goes a long way to solve the flaws these industries have had for years. Our hope is to assist the leaders of these industries in learning ways to capture a larger percentage of market share by elevating service through increased transparency and accountability. We will teach you how to best integrate LoanMarq into your operation, effectively market the product to referral sources, and position your mortgage and real estate businesses for success, even in this tough economic climate. LoanMarq is poised to create a community where industry leaders will collaborate to more effectively service their clients. LoanMarq -- The New Service BenchMarq.