This document discusses how Signature Mortgage Corporation gained a competitive edge in the mortgage industry through adopting state-of-the-art e-Commerce technology. It describes how the company leveraged cloud-based e-SignLive and LotusLive services to move its mortgage processing online, allowing it to complete applications faster, close loans quicker, and increase its volume, revenues, and profits compared to competitors relying on manual paper-based processes.

1. Gaining a Competitive Edge
in the Mortgage Industry
Bob Catlin | CEO and Founder
Signature Mortgage Corporation
© 2011 IBM Corporation

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. 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. 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. It's a necessity!
─ Research rates and terms on-line quickly
and easily.
─ Completing applications online is essential
Competing on rates alone
isn't enough.
© 2011 IBM Corporation 5

5. The Challenges of Delivering Exceptional
Customer 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. The Problems with Manual, Paper-Based
Processing 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. The Problems with Manual, Paper-Based
Processing 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. The Problems with Manual, Paper-Based
Processing 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. Moving Mortgage Processing to the Web
● Electronic signatures are key:
─ Saw the benefits of electronic signatures
at Quicken Loans
● Signature Mortgage's 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. Executing the Mortgage Application
Using e-SignLive
http://www.
Co-Borrowers Can Be in Different Locations
© 2011 IBM Corporation 11

11. Executing the Mortgage Application
Using e-SignLive
1. Customers Receive
Email invitation 2. Logs Into Service 3. E-Sign Consent 4. Guided Review
Process
5. Visual Signing
Prompts 6. Loan Officer Notified
When Completed 7. Verifies & Closes the
Signing Session 8. Secure Copies
Delivered
© 2011 IBM Corporation 12

12. Leveraging the Online Collaboration and Social
Networking 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. 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. 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. 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. 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 couldn't 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 Mortgage's 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. It's funny, our local Credit Union called about the status of
our refinancing with you and we told them we already closed our loan.
They couldn't 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. Conclusion
● Consumer intelligence and
expectations have dramatically
increased
● Web-based mortgage activity
is no longer a luxury. It's 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

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