Gaining a Competitive Edgein the Mortgage IndustryBob Catlin | CEO and FounderSignature Mortgage Corporation              ...
About Signature Mortgage                           ●   Regional mortgage provider                               and Inc. 5...
The Changing Industry                                     ●   Existing mortgage crisis:                                   ...
The Changing Consumer                               ●   Better access to accurate                                   mortga...
The Challenges of Delivering ExceptionalCustomer Service                            ●   32 documents and growing:         ...
The Problems with Manual, Paper-BasedProcessing of Mortgages                          ●   Inconvenient:                   ...
The Problems with Manual, Paper-BasedProcessing of Mortgages                          ●   Affects rates and revenues:     ...
The Problems with Manual, Paper-BasedProcessing of Mortgages                          ●   Prone to errors:                ...
Moving Mortgage Processing to the Web                          ●   Electronic signatures are key:                         ...
Executing the Mortgage ApplicationUsing e-SignLive                             http://www.            Co-Borrowers Can Be ...
Executing the Mortgage ApplicationUsing e-SignLive1. Customers Receive   Email invitation    2.   Logs Into Service       ...
Leveraging the Online Collaboration and SocialNetworking Features of LotusLive                            ●   Create a mor...
The Impact on Our Business                                 ●   Faster loan processing:                                    ...
The Impact on Staff                                   ●   Getting internal buy-in was key:                                ...
The Impact on Customers                                ●   Creates a sense of urgency:                                    ...
Unsolicited Customer Feedback                          “My husband and I usually work with our local bank for financing an...
Conclusion             ●   Consumer intelligence and                 expectations have dramatically                 increa...
Legal Disclaimer © IBM Corporation 2011. All Rights Reserved. The information contained in this publication is provided fo...
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2011 lotusphere presentation_signature_mortgage

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2011 lotusphere presentation_signature_mortgage

  1. 1. Gaining a Competitive Edgein the Mortgage IndustryBob Catlin | CEO and FounderSignature Mortgage Corporation © 2011 IBM Corporation
  2. 2. About Signature Mortgage ● Regional mortgage provider and Inc. 500 company ● Servicing Ohio and Florida ● 12 employees generate $4M in annual revenues ● $2 billion in residential loans since company inception ● Our competitive edge: ─ State-of-the-art, e-Commerce technology ─ Exceptional service + lowest rate possible © 2011 IBM Corporation 3
  3. 3. The Changing Industry ● Existing mortgage crisis: ─ As of 2007 – falling home prices, poor economy, job loss, and panic ─ Record level of foreclosures and short sales ─ Mortgage graveyard – over 800 mortgage- related financial institutions have gone under ─ New purchase business at record lows ─ Less customers and revenue per loan ● Internet lead generation: ─ Tens of thousands of leads generated daily ─ Consumers searching terms and conditions ─ Cut-throat pricing and sensational guarantees Must Compete for a Smaller Pool of Qualified Customers, and Quickly Upgrade Technologies to Win Internet Consumer Leads © 2011 IBM Corporation 4
  4. 4. The Changing Consumer ● Better access to accurate mortgage info via the web: ─ Receive numerous competing offers / shop till you drop mentality ─ Conduct business on their terms and time ─ Demand the best rate, lowest cost, and easy, hassle-free experience ● Mortgage web activity is no longer a luxury. Its a necessity! ─ Research rates and terms on-line quickly and easily. ─ Completing applications online is essential Competing on rates alone isnt enough. © 2011 IBM Corporation 5
  5. 5. The Challenges of Delivering ExceptionalCustomer Service ● 32 documents and growing: ─ Loan application, disclosures, and other docs must be reviewed and signed ─ Customer must provide supporting documents (i.e. proof of employment, insurance, revenue reports, etc.) ● Must be correctly executed to mitigate risks: ─ Failure to comply with regulations leads to fines ─ Failure to properly execute transaction leads to legal disputes ─ Poor customer experience if documents must go back for correction © 2011 IBM Corporation 6
  6. 6. The Problems with Manual, Paper-BasedProcessing of Mortgages ● Inconvenient: ─ Customers must travel to the documents: (i.e. retail branch) ─ Documents must travel to customers (i.e. home, work) ● Time-consuming: ─ 7+ days to complete a mortgage application ─ Increases shop-around and drop-off risks ─ 45+ days to close the mortgage: © 2011 IBM Corporation 7
  7. 7. The Problems with Manual, Paper-BasedProcessing of Mortgages ● Affects rates and revenues: ─ Rates fluctuate daily ● Most providers guarantee rates for 30 days: ─ Customer will not get promised rate if it takes 45 – 60 days to get to closing ● Shorter rate locks benefit both the customer and provider: ─ Ex: $200,000 loan @ 4.75%, 30-year fixed ─ 60 day lock = $3,000 ─ 45-day lock = $3,400 ─ 30-day lock = $3,900 ─ 15-day lock = $4,500 © 2011 IBM Corporation 8
  8. 8. The Problems with Manual, Paper-BasedProcessing of Mortgages ● Prone to errors: ─ Missing documents, data, signatures, initials, etc. ● Increases risks: ─ Processing errors lead to regulatory fines, legal disputes, damage to reputation ● Costly: ─ Paper, shipping, QA, scanning, data re- keying, follow-up calls to customers, etc. © 2011 IBM Corporation 9
  9. 9. Moving Mortgage Processing to the Web ● Electronic signatures are key: ─ Saw the benefits of electronic signatures at Quicken Loans ● Signature Mortgages challenge: ─ Limited IT infrastructure, budget and resources ─ Could not invest in the large enterprise platform solution ● e-SignLive and LotusLive the answer: ─ Cloud-based services: No software or hardware to purchase, integrate, deploy, or update ─ Subscription-based model: Licenses for staff / customers use free of charge ─ Quick time-to-market: Up and running in 48 hrs. © 2011 IBM Corporation 10
  10. 10. Executing the Mortgage ApplicationUsing e-SignLive http://www. Co-Borrowers Can Be in Different Locations © 2011 IBM Corporation 11
  11. 11. Executing the Mortgage ApplicationUsing e-SignLive1. Customers Receive Email invitation 2. Logs Into Service 3. E-Sign Consent 4. Guided Review Process5. Visual Signing Prompts 6. Loan Officer Notified When Completed 7. Verifies & Closes the Signing Session 8. Secure Copies Delivered © 2011 IBM Corporation 12
  12. 12. Leveraging the Online Collaboration and SocialNetworking Features of LotusLive ● Create a more personal web experience: ─ Virtual “face-to-face” meetings ─ Web meetings and video conferencing ● Guide customers through the mortgage process: ─ Application sharing ─ Desktop sharing ─ File sharing ● Capture customer satisfaction and feedback: ─ Online surveys © 2011 IBM Corporation 13
  13. 13. The Impact on Our Business ● Faster loan processing: ─ Applications returned in 24 – 48 hrs versus 7 – 10 days ─ Loans closed in < 25 days vs. 45 – 60 days national average ● Higher volume, revenues & profits: ─ 34% increase in loan volume ─ Loan revenue has increased 15 - 25 basis points ($350 - $500) per loan ─ $30K additional revenue per month ─ Shorter rate lock = more income per loan ● Reduced processing cost: ─ 85% reduction in shipping costs ─ $1,500 hard cost savings per month A game changer... exponential growth opportunity. ● Ability to expand nationally: ─ Enables us to move into other states © 2011 IBM Corporation 14
  14. 14. The Impact on Staff ● Getting internal buy-in was key: ─ From concept, to beta testing, to deployment, to launch – staff was fully on-board ● Improved loan officer morale: ─ Technology used as a competitive differentiation ─ Communicate with clients with confidence and impact ─ 90% of mortgages are now e-signed ● Internal staff are impressed: ─ Easier to recruit new staff Loan officers believe they can compete with national players. © 2011 IBM Corporation 15
  15. 15. The Impact on Customers ● Creates a sense of urgency: ─ So quick, feel compelled to complete the process. ─ Some applications returned in 30 min. ● Less likely to shop around: ─ “Wow, these people don’t mess around”. / Feel they are in good hands. ─ Emotional commitment / Feel they’ve made the right decision ● No longer make changes: ─ Clients now sign without trying to change any language on our forms. ● Creative, fun, and hassle-free: ─ “Is that it? Wow… that was easy.” 90% of our clients use the ─ Relationship begins on a strong foundation technology. ─ Prevents competition from sneaking back in © 2011 IBM Corporation 16
  16. 16. Unsolicited Customer Feedback “My husband and I usually work with our local bank for financing and refinancing our home loan. Signature Mortgage offered us better terms and conditions, but most of all we were sold on their e-sign capabilities. We have careers and kids and we just couldnt find the time to go to the local bank branch between 9am-5pm. This was the fastest and smoothest process we have experienced.” John and Kathy Mitchell Cincinnati, OH “I was intrigued by Signature Mortgages e-sign technology and was a little skeptical in the beginning. Wow! Now this is how applying for a home loan should be! Easy, fast and hassle free. Our loan was closed in 18 days. Its funny, our local Credit Union called about the status of our refinancing with you and we told them we already closed our loan. They couldnt believe how fast everything was completed. They are taking 45 days or more! Thanks for everything.” Mark Bishop Cleveland, OH “I was very impressed with your e-sign capabilities, timeliness and organization of the entire process. Great job! I will definitely recommend you to my friends and family. Unbelievable technology.” Steve Temple Liberty Twp, OH © 2011 IBM Corporation 18
  17. 17. Conclusion ● Consumer intelligence and expectations have dramatically increased ● Web-based mortgage activity is no longer a luxury. Its a necessity ● Reducing processing and underwriting time are critical to thriving ● Most only consider the tangible, bottom line benefits ● The intangibles ensure you achieve ROI © 2011 IBM Corporation 19
  18. 18. Legal Disclaimer © IBM Corporation 2011. All Rights Reserved. The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided AS IS without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in this presentation to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in this presentation may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. Nothing contained in these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in any specific sales, revenue growth or other results. If the text contains performance statistics or references to benchmarks, insert the following language; otherwise delete: Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the users job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here. If the text includes any customer examples, please confirm we have prior written approval from such customer and insert the following language; otherwise delete: All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer. Please review text for proper trademark attribution of IBM products. At first use, each product name must be the full name and include appropriate trademark symbols (e.g., IBM Lotus® Sametime® Unyte™). Subsequent references can drop “IBM” but should include the proper branding (e.g., Lotus Sametime Gateway, or WebSphere Application Server). Please refer to http://www.ibm.com/legal/copytrade.shtml for guidance on which trademarks require the ® or ™ symbol. Do not use abbreviations for IBM product names in your presentation. All product names must be used as adjectives rather than nouns. Please list all of the trademarks that you use in your presentation as follows; delete any not included in your presentation. IBM, the IBM logo, Lotus, Lotus Notes, Notes, Domino, Quickr, Sametime, WebSphere, UC2, PartnerWorld and Lotusphere are trademarks of International Business Machines Corporation in the United States, other countries, or both. Unyte is a trademark of WebDialogs, Inc., in the United States, other countries, or both. 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If you reference Intel® and/or any of the following Intel products in the text, please mark the first use and include those that you use as follows; otherwise delete: Intel, Intel Centrino, Celeron, Intel Xeon, Intel SpeedStep, Itanium, and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. If you reference UNIX® in the text, please mark the first use and include the following; otherwise delete: UNIX is a registered trademark of The Open Group in the United States and other countries. ●If you reference Linux® in your presentation, please mark the first use and include the following; otherwise delete: Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. Other company, product, or service names may be trademarks or service marks of others. ●If the text/graphics include screenshots, no actual IBM employee names may be used (even your own), if your screenshots include fictitious company names (e.g., Renovations, Zeta Bank, Acme) please update and insert the following; otherwise delete: All references to [insert fictitious company name] refer to a fictitious company and are used for illustration purposes only. © 2011 IBM Corporation 20

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