When the first steam locomotive powered its way across England in the early 19th century, it was nothing short of revolutionary. People stood in awe as they watched this powerful machine cover distances that once took days in mere hours. It drastically improved the speed, efficiency, and reliability of long-distance transportation, connected distant communities, and opened up new opportunities for economic and urban development.
Here is an interesting, but obscure fact about the rail industry. The U.S. railroad gauge is 4 feet, 8.5 inches. Why was that gauge used? Because that’s the way they built them in England and the first rail lines in England were built by the same people who built the pre-railroad tramways. And the people who built the tramways used the same tools used for building wagons which had that same wheel spacing because if they tried to use any other spacing, the wagon wheels would break on some of the old, long-distance roads in England, which were based on the first long-distance roads in Imperial Rome. Those roads have been used ever since, because that’s the spacing of the wheel ruts. So, ultimately the 4 ft, 8.5 inches rail gauge is based on the width of…two horses’ asses.
I can’t help but notice the similarities between that era and the current transformation in mortgage lending. Just as railroads reshaped economies and societies, they were also constrained by some of the existing tools, and skills of those that came before them. Basically, they had to follow the tracks already laid out by others.
Can AI be something different? Artificial Intelligence (AI) is beginning to revolutionize the way mortgages are processed — faster, more efficiently, and with a level of personalization we couldn’t have imagined just a few years ago. If you haven’t already jumped aboard the AI train (pun fully intended), now is the time. But let’s avoid the ruts, and that is what this month’s Insights feature article is all about.
This month’s InFocus article, written by STRATMOR Principal, and resident AI aficionado, Kris van Beever, serves as a comprehensive guide, offering mortgage professionals a practical blueprint for leveraging AI in their operations. Check out “All Aboard the AI Train: A Practical Roadmap for Lenders” to discover proven AI applications already delivering results, explore emerging technologies poised to reshape lending practices, and learn actionable implementation strategies that can position your organization at the forefront of this technological revolution.
The AI revolution is already proving its positive impact on the customer experience. But before an organization can implement AI tools designed to smooth the process, its leaders need to take a hard look at the actual experience of their borrowers. In our second article, Customer Experience Director Mike Seminari compares his work with lending executives to that of celebrity chef Gordon Ramsay on the show “Kitchen Nightmares.” If you’ve ever watched the show, you know that in every episode Gordon Ramsay visits struggling restaurants and uncovers a range of issues that are often preventing them from thriving. He’s a little gruff and has about zero bedside manner, but he’s almost never wrong in his assessment. And the issues he uncovers aren’t just about bad food — they’re about poor customer service, disorganization, and a lack of attention to detail. Much like a failing restaurant, mortgage companies that fail to focus on providing exceptional customer experience have little hope of sustained growth through tough markets, no matter how competitive their rates are. Check out Mike’s recent CX Tip, “Avoid a Mortgage Nightmare: Evaluate and Elevate Your Customer Experience” for guidance on what lenders can do to avoid becoming mortgage nightmares.
Thank you for joining us for the January Insights Report. Your success remains our top priority, and we are here to support you every step of the way. STRATMOR provides a wide range of advisory services to facilitate, optimize and address the challenges lenders are facing today, including strategy design and implementation, financial benchmarking and performance, process review and improvement, maximizing servicing assets, optimizing your customer experience initiatives to get more business, technology procurement and implementation, M&A and strategic options, and much more. STRATMOR’s advisory team is available now to discuss these services. Please contact us to learn more.
The mortgage industry stands at the threshold of unprecedented transformation, with artificial intelligence (AI) as the catalyst for change. Just as modern railways revolutionized transportation, AI is reshaping lending operations with promises of enhanced efficiency, accuracy, and the ability to navigate new routes. This article serves as a comprehensive guide, offering mortgage professionals a practical blueprint for leveraging AI in their operations.
Our question this month: Is our focus on delivering a positive, seamless customer experience, or are our processes unintentionally driving clients away?
Join us in Chicago, May 21 and 22, 2025, for the STRATMOR Consumer Direct Workshop, designed specifically for CD lenders looking to remain competitive and grow their revenue in 2025.
Origination costs are at an all-time high. Given that sales costs will continue to be the largest component of retail origination costs, what can be done to manage this beast?
Understanding the key characteristics of the Expense Management Branch (EMB) and comparing the key performance metrics between it and the corporate branch model is essential to identifying which is best for your organization.
Secret shopping is the best way for lenders to remove the disconnection between perception and reality and pave the way for meaningful improvements in customer experience.
To start the new year, we asked STRATMOR advisors: “What is the one thing you would tell your clients to focus on as we start 2025?” A clear takeaway emerged: adaptation is essential. Companies that resist change risk falling behind, while those that evolve with the market will maintain their competitive edge.
As we step into 2025, now is an ideal time to set resolutions that will guide your business toward continued growth and innovation. Whether it’s improving operational efficiencies, embracing new technology, or refining your customer experience, this year presents a unique opportunity to take practical steps that will pay dividends in the long run.
In this article, STRATMOR advisors offer practical recommendations to help you:
Read on so you can hit the ground running and make 2025 your best year yet.
As we approach the end of 2024, we’re excited to share our “Greatest Hits” compilation. This recap highlights the thought-provoking and impactful articles we published, showcasing the key insights, trends and discussions that defined our year.
It may seem like a coincidence that eight-time Grammy award winner Gloria Estefan took the stage at Concert MBA during the 2024 Mortgage Bankers Association (MBA) Annual Convention in Denver this year. But her hit song “Get on Your Feet” resonated deeply, perfectly capturing the mortgage industry’s journey through one of its most challenging periods. After enduring more than two years of “nasty weather” — marked by high rates, low inventory and plummeting sales — the industry stands at a pivotal moment where Estefan’s lyrics strike a powerful chord.
Today’s mortgage business is dividing into two camps: those waiting passively for the next refi wave or rate decrease to bail them out and those taking bold, decisive action to reshape their future. The latter group is positioning themselves to thrive in 2025 and beyond.
Throughout 2024, STRATMOR’s experts have witnessed this firsthand while crisscrossing the country to participate, present at, and gain insights from industry events. While last year’s atmosphere was decidedly grim, 2024 brought encouraging signs of cautious optimism and renewed confidence in the industry’s future. This month, we share our key takeaways from recent industry gatherings, including the recent MBA Annual Convention and Expo held in Denver, and provide strategic guidance for capitalizing on the opportunities ahead in 2025.
Feel free to reach out with any questions or needs we might be able to help with.
