NMP - December 2016 - 80


DIY Technology: It's More About Value
Than Cost By Carlos Sa
hen you
need a new
car, it's a
near
certainty
someone
will build it for you. And unless
you're interested in certain
custom features-like chrome
rims or a purple paint job-it's
likely that the next vehicle you
buy will be already built before
you decide you want it. Of
course, there are a small
number of Americans who build
their own cars, some using
recent environmentally friendly
innovations such as lightweight
frames and electric technology.
For most of us, however,
getting a new set of wheels

W

involves a teeth-gritting trip to
the local dealership.
How mortgage companies
choose the technology systems
that "drive" business is not much
different. In fact, the choices are
far more limited. While there are
hundreds of different automobile
brands and models, lenders must
pick from only about half a dozen
or so loan origination systems.
And yet it is still possible for a
lender to create their own
system, one that's actually better
than anything on the market, and
the benefits for loan officers are
significant.
A better customer
experience
Practically everyone has heard of

DECEMBER 2016 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

80

TO OVE !
E
M
I
IT'S T UR M

EY
K
A
M

JOIN A

O

Loan Officers, Branch Managers and Teams

GROWING TEAM

Inside & Outside Sales positions available
Carrington is expanding nationwide.
We are looking for experienced managers
and teams to join our organization.

Contact us to learn more
about Carrington and make
the move to expand your
business and career.

WE OFFER:

John Cervantes |

 Great compensation and benefits
 Operations focused on quality & speed of closing
 Marketing support and lead generation
 Licensing and compliance support
 Agent co-marketing programs
VOTED

RECRUITER

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949-517-7127
Carlos Fernandez |

RECRUITER

Carlos.Fernandez@CarringtonMH.com

949-517-7204

TOP 50 BEST PLACES TO WORK

WE ARE THE

#6 FHA LENDER IN THE NATION

EQUAL OPPORTUNITY EMPLOYER

© Copyright 2007-2016 Carrington Mortgage Services, LLC headquartered at 1600 South Douglass Road, Suites110 & 200A, Anaheim, CA 92806.
800-561-4567. NMLS ID #2600. Nationwide Mortgage Licensing System (NMLS) Consumer Access website: www.nmlsconsumeraccess.org. All rights reserved.

TurboTax. Over the past two
decades, the off-the-shelf
software revolutionized how
Americans prepare their taxes.
The key to TurboTax's success
is how it breaks down an
extremely complex process
such as tax preparation into a
series of very simple questions.
How users respond to these
questions dictates which
question they get next, until
TurboTax has all the information
it needs to prepare the user's
tax forms. This sort of electronic
interview takes an enormous
amount of pain out of the tax
filing process, and now the
mortgage industry is beginning
to do the same for mortgages.
In the past, lenders invested
in technology to streamline how
they process loans. The new
wave is to leverage technology
to allow borrowers to do more
of the work online. Lenders are
increasingly implementing tools
that allow borrowers to enter
and verify their own income,
assets and other data online, at
their convenience. These sorts
of self-driven technologies work
as virtual loan assistants that,
when combined with a lender's
loan origination system, can be
triggered to send borrowers an
email informing them of next
steps in the process. Our
company has a new tool under
development that lets borrowers
see their loan choices based on
the information they provided
and basically approve their own
loan.
As we're learning, a growing
number of borrowers prefer it
this way. Rather than driving to
a lender's office or even having
a loan officer explain everything
on the phone, most borrowers
find it much more enjoyable to
sit down on a Saturday, open
their iPad and review their
options for buying a house or
refinancing their existing
mortgage. The best thing about
enabling borrowers to do the
work is that they already own
the data-Social Security
Numbers, assets, debts,

employment history and
everything else a lender will ask
about. Of course, this data
must be verified, but borrowers
have proven themselves able to
do a great job at getting this
information to the lender. In
addition, Fannie Mae recently
decided to back the income
and asset data that borrowers
enter electronically against
fraud and inaccuracies, giving
the borrower-driven mortgage
process a major boost.
Lenders that build their own
systems are usually better
suited to offer borrowers this
sort of self-driven mortgage
process. Most third-party LOS
providers do not include
options for a self-driven
borrower to upload and verify
their own data. On the other
hand, even lenders that do not
have the ability to build a
borrower-driven process
through a homebuilt system
can easily integrate one of a
growing number of third-party
software modules that provide
this capability. Letting
borrowers steer the mortgage
process has cost benefits, too.
Lenders with these tools
generally require fewer inhouse processors, whose
traditional task was collecting
information from the borrower
manually.
Of course, even when
borrowers want to do it
themselves, they are still
making a huge financial
decision, so they will want
someone to talk to when they
have a question or a concern.
This is one drawback to some
of the new lending models that
advertise the ability to get a
mortgage with a mouse click.
It's just never going to be quite
that simple. Yet giving
borrowers the tools that they
want and that they are
comfortable using creates a
much better borrower
experience-which tends to
generate more business
through referrals from delighted
customers.
Better control
over the process
Most lenders have at least one
horror story-and often more-
about trying to implement a


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Table of Contents for the Digital Edition of NMP - December 2016

Contents
NMP - December 2016 - Cover1
NMP - December 2016 - Cover2
NMP - December 2016 - 1
NMP - December 2016 - Contents
NMP - December 2016 - 3
NMP - December 2016 - 4
NMP - December 2016 - 5
NMP - December 2016 - 6
NMP - December 2016 - 7
NMP - December 2016 - 8
NMP - December 2016 - 9
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NMP - December 2016 - Cover3
NMP - December 2016 - Cover4
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