Volume 3, Issue 10 October 2018

 Featuring: Rise of the Credit Unions

Are you one of the bank or independent lenders who doesn’t pay much attention to credit unions? Do you think they are only competition for community banks? You might want to take a second look and read, “The Rise of the Credit Unions.”

An estimated 54 million households belong to a CU, and they have a fiercely loyal customer base who take advantage of their low-cost banking solutions and high-touch services, giving CUs a large customer base to which they can offer mortgages. In this article, STRATMOR senior partners Garth Graham and Michael Grad, and principals Andrew Weiss and Tom Finnegan provide insight and data into the advantages, disadvantages and growth potential of today’s credit unions.

In a second Insights article, “The Borrower Experience,” MortgageSAT Director Mike Seminari addresses the importance of providing borrowers with an initial checklist in combatting the most common borrower complaint — poor communication.

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Volume 3, Issue 9 September 2018

 Featuring: The Strategy of Process

Are you building a process review into your strategic plans for 2019? Be sure to read this month’s lead article: “The Strategy of Process.”

With our industry’s “New Normal” conditions, proactive lenders are seeking sustainable competitive advantages through investment in technology and process redesign. In this article, STRATMOR Principal Jennifer Fortier outlines a holistic approach to process reviews and shows how an Operational Review can help lenders develop a process strategy discipline.

In our second article,  “MortgageSAT and the Borrower Experience” we introduce STRATMOR’s new, easy-to-use MortgageSAT calculator. With this calculator, Lenders can estimate the increased income opportunities as a result of satisfying STRATMOR’s Seven Commandments for Achieving Borrower Satisfaction.

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Volume 3, Issue 8 August 2018

Featuring: May IT Be With You: Unleashing the Power of Business Level Agreements

If a digital initiative is part of your 2019 strategy, you’ll want to read our lead article this month: “May IT Be with You: Unleashing the Power of Business Level Agreements.”

In most mortgage companies, IT is guided primarily by internal and external Service Level Agreements (SLAs) leaving out the business measures needed to give IT a voice in, and responsibility for, achieving enterprise business goals. In our lead article, we examine how adding Business Level Agreements — and IT leadership— to your strategy and planning process will more effectively guide IT’s performance and then why it’s important to reward accordingly based on achieving these goals.

In our second article, “Aligning Back Office Compensation with Achieving a Superior Borrower Experience,” Dr. Matt Lind discusses the impact of the paradigm shift from price to the borrower experience as the primary basis for competition.

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Volume 3, Issue 7 July 2018

Featuring: Connecting the Blocks: Practical Applications of Blockchain for the Mortgage Industry

This month, it’s all about disruption in our business lives. STRATMOR Principal Andrew Weiss, an architect of one of the biggest technology disruptors to date for the mortgage industry — Desktop Underwriter — has authored our lead article, an insightful look at what Blockchain might do for lenders in both the short and long term. STRATMOR believes that Blockchain is a technology architectural principle that could do for mortgage what the web did for consumer purchasing — take the “friction” out of the borrower experience.

In our Mortgage Metrics Matters section, Senior Partner Nicole Yung offers insight into overall compensation when automation changes like Blockchain allow lenders to redeploy Post Closers and Shippers to other roles. And, Dr. Matt Lind draws upon our June issue, “Plight of the Independent Mortgage Banker,” offering additional insightful growth strategy ideas that center on diversity and the borrower experience.

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Volume 3, Issue 6 June 2018

Featuring: Plight of the Independent Lender

This month, we’re digging into a topic that has far-reaching implications in our industry: the plight of the Independent lender.

Senior Partners Jeff Babcock and Garth Graham set the stage for this discussion by summarizing the recent history and projected trajectory of mortgage origination volume and its purchase/refinance mix as the context for the challenges negatively impacting Independent lenders. Then, they identify possible strategies by which Independents might mitigage these challenges, including recommendations for cost reduction strategies and options of selling to or joint-venturing-with another lender.

In the Borrower Experience section, MortgageSAT Director Mike Seminari addresses the hype around lender/loan officer testimonials and their effect on referral business. Only about two percent of borrowers cite positive online reviews as their primary reason for choosing a lender. In a nutshell: borrowers use online reviews to confirm a referral, not choose a lender.

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Volume 3, Issue 5 May 2018

Featuring: Crossing The Digital Divide: In With The Old, In With The New

This month, we’re sharing with you the experiences of STRATMOR Principal David Moynan as he worked with LoyaltyExpress, a mortgage marketing automation and CRM firm. It was an enlightening experience for David, and one that caused him to do a 180 in his thinking about the best way to reach borrowers, particularly Millennials.

Mortgage Metrics Matter shares results from STRATMOR’s Technology Insight Survey, which features a focus on replacement of LOS systems.

Finally, The Borrower Experience section explores primary reasons for choosing a lender.

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Volume 3, Issue 4 April 2018

Featuring: Regulatory Outlook 2018 Report: Ability to Repay (ATR) And Qualified Mortgage (QM) Regulations

This month we focus on a regulatory topic in our lead story, written by Rob Chrisman and Matt Lind, Ph.D. The article, “Regulatory Outlook 2018 Report: Ability to Repay (ATR) and Qualified Mortgage (QM),” reports on the results of the March 2018 STRATMOR ATR/QM survey. A key finding: more lenders favor little to no change to these regulations. Find  charts, tables and great analysis of the data in this report.

Mortgage Metrics Matter shares results from STRATMOR’s Originator Census Survey, which features a comparison of 2016 to 2017 survey data.

Finally, The Borrower Experience section analyzes how the borrower experience varies by origination channel.

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Volume 3, Issue 3 March 2018

Featuring: Digital Mortgage: Growth Strategy Or Technology Expense?

“Transformational” is the word that describes our In-Focus article this month. Senior Partner Michael Grad addresses what lenders need to do to deploy Digital Mortgage as an actionable growth strategy that defeats competitors, and, at the same time, transforms the customer experience.

Mortgage Metrics Matter shares results from STRATMOR’s Compensation Connection survey about what lenders are paying for Compliance managers and analysts.

Finally, The Borrower Experience section analyzes the impact on both borrower satisfaction and Net Promoter Scores when more than one of the Seven Commandments of Borrower Satisfaction are breached.

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Volume 3, Issue 2 February 2018

Featuring: Moving Forward In Reverse

This month our In-Focus article looks at the reverse mortgage line of business, primarily with an eye towards the potential opportunity reverse mortgages present for lenders currently focused on forward mortgages.

Mortgage Metrics Matter uses data from our Technology Insight Survey program to analyze lender use of CRM systems that are native to their LOS versus third-party systems.

Finally, our Speaking Borrower Satisfaction section has been renamed The Borrower Experience. In this section Dr. Matt Lind uses MortgageSAT data to take a deeper look at the importance of closing when expected.

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Volume 3, Issue 1 January 2018

Featuring: Regulatory Outlook 2018: Don’t Tread on TRID

This month our In-Focus article takes a hard look at how the changes in CFPB leadership may affect the regulatory landscape and how lenders are likely to respond.

Mortgage Metrics Matter uses data from our Compensation Connection survey program to analyze mortgage senior executive incentive compensation.

Finally, in Speaking Borrower Satisfaction, the Topic of the Month uses MortgageSAT data to analyze the scale, scope and impact on borrower satisfaction of “problems” arising during the loan origination process.

 

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Volume 2, Issue 12 December 2017

Featuring: What’s Age Got To Do With It? Debunking Myths Around Loan Officer Age

This month our In-Focus article debunks myths surrounding loan originator age and the idea that mortgage LOs are “too old.”

Mortgage Metrics Matter shares insights from the 2017 Originator Census Survey, highlighting the impact, if any, of time of year on Originator turnover.

Finally, in Speaking Borrower Satisfaction, the Topic of the Month looks to see if there is a difference in which borrower age groups use Retail branches versus Consumer Direct call centers.

 

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Volume 2, Issue 11 November 2017

Featuring: What Lenders Say: Top of Mind Topics in 2017

This month in In-Focus, STRATMOR shares what they heard and provides perspective on lender “top of mind” topics from the Annual MBA Conference and the PGR: MBA and STRATMOR Fall Peer Group Meetings.

Mortgage Metrics Matter shares insights from the newly-released 2017 Technology Insight Survey, including a notation on an interesting shift in lender priorities.

Finally, in Speaking Borrower Satisfaction, the Topic of the Month considers how borrower satisfaction is impacted when borrowers purchasing a newly-constructed home are not advised of the possibility they’ll need to provide documentation more than once.

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Volume 2, Issue 10 October 2017

Featuring: Five Tips for Making the Most of Digital Technology

This month in In-Focus, STRATMOR Sr. Partner Garth Graham lays out five tips that can help lenders assure they are making the most of their invesement in digital technology.

Mortgage Metrics Matter shares insights from the Originator Census Survey, which questions how age and tenure varies between Retail and Consumer Direct channels.

Finally, in Speaking Borrower Satisfaction, the Topic of the Month considers if borrower satisfaction varies across different regions of the country.

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Volume 2, Issue 9 September 2017

Featuring: A New Method for Measuring Lender Performance

This month in In-Focus, STRATMOR shares our perception that mortgage lenders have utilized virutally the same metrics to assess financial and operational performance for the past 30 years. STRATMOR has been exporing some new measurement techniques, one of which we describe in this article.

Rounding out the issue, Mortgage Metrics Matter presents data derived from a recent Technology Insight Survey to address how effectively lenders’ LOS systems provide complaince functionality and what functionality lenders feel is “most missing” from their LOS systems.

Finally, in Speaking Borrower Satisfaction, the Topic of the Month considers how a borrower’s race-national origin, marital status and the amount of their loan affect satisfaction.

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Volume 2, Issue 8 August 2017

Featuring: Getting the Right Technology — Peer Perspectives of the Technology Experience

This month our In-Focus features an interview with Sr. Partner Nicole Yung regarding the importance of lender participation in our latest 2017 Technology Insight Survey (TIS).

Rounding out the issue, Mortgage Metrics Matter presents data derived from our most recent Compensation Connection Survey — looking at how much paid-time-off and what 401K matches lenders offer. And in Speaking Borrower Satisfaction, the Topic of the Month considers how a borrower’s monthly income, buyer status, and residency status affect their satisfaction.

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Volume 2, Issue 7 July 2017

Featuring: Transfer of Servicing (“TOS”) — A Battle Tested Methodology

This month we feature an In-Focus article written by Senior Partner Michael Grad. This article is about Servicing relationships and, in it, Michael illustrates that, in the context of Transfer of Servicing, our focus is the successful transfer of the relationship of the borrower, not the loan.

Rounding out the issue, Mortgage Metrics Matter connects the dots with a comparison of loan originator compensation and sales support at Banks versus Independent lenders. And in Speaking Borrower Satisfaction, the Topic of the Month looks at how borrower attributes affect borrower satisfaction.

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Volume 2, Issue 6 June 2017

Featuring: The Seven Commandments for Achieving Borrower Satisfaction

This month we feature an In-Focus article written by Senior Partner Garth Graham. Based on MortgageSAT data, Garth lays out “The Seven Commandments for Achieving Borrower Satisfaction,” which he also notes are simply common-sense rules.

Rounding out the issue, Mortgage Metrics Matters considers loan originator productivity as it differs between Bans and Independent lenders. And in Speaking Borrower Satisfaction, we address the question of: How Much Does Closing Time Matter?

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Volume 2, Issue 5 May 2017

Featuring: The Changing Credit Landscape: What It Means For Originations

This month we feature an In-Focus article written by Senior Advisor Rob Chrisman.  Rob discusses loosening credit underwriting standards and what this means for originations.

Rounding out the issue, Mortgage Metrics Matter presents results dealing with Document Preparation. Our In The Spotlight piece shares some results of the March Spotlight survey dealing with lender responses to perceived benefits and barriers of Digital Mortgage, and Speaking Borrower Satisfaction features topic of the month Does Size Matter?, which looks at lender size in relation to borrower satisfaction.

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Volume 2, Issue 4 April 2017

Featuring: Fantastic Business Analysts and Where to Find Them

This month we feature an In-Focus article written by Senior Partner Len Tichy.  Len addresses the importance of the Business Analyst, how they’re critical to IT project success, and just where to find them.

Rounding out the issue, Mortgage Metrics Matter outlines the differences in compensation between Retail and Consumer Direct originatiors, In The Spotlight looks at Bank mortgage loan referral practices, and Speaking Borrower Satisfaction features topic of the month: Choosing a Lender.

 

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Volume 2, Issue 3 March 2017

Featuring: LOS: What’s the Score? What’s In Store?

Our March issue features an In-Focus article written by Senior Partner Garth Graham.  In his piece, Garth takes a closer look at Lender expectations, drawing from the wealth of STRATMOR’s proprietary survey data to address current issues for Lenders.

Rounding out the issue, Mortgage Metrics Matter focuses on the current and future state of LOS configuration, In The Spotlight looks at results of a survey regarding recruitment and retention of Branch Managers, and Speaking Borrower Satisfaction features topic of the month: The Closing Experience.

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Volume 2, Issue 2 February 2017

Featuring: What Prospective Sellers Can Learn From Today’s M&A Marketplace

Our February issue features an In-Focus article written by Senior Partners Jeff Babcock and Jim Cameron.  With interest rates on the rise and origination volumes likely to be down as refinances diminish, it’s not too early for many lenders to think about selling their firm and ways to maximize value.

Rounding out the issue, Mortgage Metrics Matter focuses on processor incentive plans, In The Spotlight looks at results of a survey that looked at post-TRID underwriting practices, and Speaking Borrower Satisfaction featurs topic of the month: Problems, Problems!

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Volume 2, Issue 1 January 2017

Featuring: Managing by the Numbers

Our January issue features an In-Focus article written by Senior Partner and Founder Dr. Matt Lind. In this article, Matt focuses on key ways lenders can and should improve by using performance benchmarking as the core basis for managing a lending operation.

Rounding out the issue, Mortgage Metrics Matter provides lenders with some valuable insights into the makeup of their sales force and how it compares to peer lenders, In The Spotlight looks at results of a survey that researched lender strategies for recruiting and retaining seasoned LOs, and Speaking Borrower Satisfaction addresses the question: Are all borrowers treated the same?

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Volume 1, Issue 6 December 2016

Featuring: Looking Back From the Future

Our December issue features an In-Focus article written by Senior Partner Len Tichy. In this article, Len looks back from the future to discuss how “the more things change, the more they stay the same” in the mortgage industry.

Rounding out the issue, Mortgage Metrics Matter looks at lender satisfaction with their current LOS, In The Spotlight highlights key Spotlight Survey findings addressing production outsourcing insights, and Speaking Borrower Satisfaction looks at The Value of Increased Borrower Satisfaction.

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Volume 1, Issue 5 November 2016

Featuring: Leadership Through Horse Sense

Our fifth issue features an In-Focus article written by CEO, Lisa Springer. In this article, Lisa shares the leadership discoveries she’s learned from her horse, Stryker, and how they apply to the business world.

Rounding out the issue, Mortgage Metrics Matter looks at selection of the best LOS for your business, In The Spotlight highlights key Spotlight Survey findings addressing lender practices and plans regarding measurement of borrower satisfaction, and Speaking Borrower Satisfaction looks at lack of growth for Consumer Direct.

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Volume 1, Issue 4 October 2016

Featuring: The Value of Customer Retention And What To Do With It

Our fourth issue features an In-Focus article written by Senior Partner Dr. Matt Lind, a STRATMOR founder and head of our internal development activities. In this article, Dr. Lind presents an analysis on how the likelihood of borrower retention affects the economic value of a mortgage servicing right.

Rounding out the issue, Mortgage Metrics Matter looks at Originator Census Survey findings, In The Spotlight highlights key findings from the recent Spotlight Appraisal Process and Turn-Times Survey, and Speaking Borrower Satisfaction discussess 2016 MortgageSAT data.

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Volume 1, Issue 3 September 2016

Featuring: The Search for Believable LOS Returns

Our third issue features an In-Focus article written by Senior Partner, Len Tichy, head of our IT and Operations Advisory Services. He addresses the failure or our industry to develop credible methodology for measuring return on investment on LOS systems. Fortunately, Len lays out an “LOS Shootout” approach to address this.

Rounding out the issue, Mortgage Metrics Matter looks at LO Compensation plans, In The Spotlight highlights key findings from the recent LO Hiring Insights survey, and Speaking Borrower Satisfaction discussess 2016 MortgageSAT data.

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Volume 1, Issue 2 August 2016

Featuring: The Importance of “Character” in Negotiating a Successful Acquisition

This month, our In-Focus think-piece focuses on the importance of “character” during negotiation of an acquisition, our Mortgage Metrics Matter section takes a look at some of the key results regarding Underwriter Compensation, In The Spotlight highlights some of the key findings coming out of a recent Spotlight survey and in Speaking Borrower Satisfaction, you’ll learn that June’s National Borrower Satisfaction Index dropped slightly.

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Volume 1, Issue 1 July 2016

Featuring: The State of Digital Mortgage

Welcome to our first edition of STRATMOR Insights, a free monthly report from STRATMOR Group. Each month’s Report contains 3 to 4 data-driven sections plus a longer In-Focus article containing a STRATMOR’s perspective on a key industry issue or development. This inaugural issue features an article on the evolution and outlook for the Digital Mortgage, written by Senior Partner Garth Graham.

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