One of my colleagues tells a tale that shows how a great story can influence behavior. As a child, she believed she possessed the powers of Superman, making it possible for her to “leap tall buildings in a single bound.” She zoomed around the house with a child’s blanket for a cape and literally knocked herself unconscious by attempting to fly over the refrigerator.
In our July InFocus article, we’re shining a spotlight on some commonly-held beliefs in the mortgage industry to see if these notions have wings. Senior Partner Jim Cameron uses data to uncover the truth about economies of scale, centralization of fulfillment operations and the technology savvy-ness of older borrowers in his article, “Myth Busters: Dispelling Common Myths in Mortgage Banking.” Jim’s articles are always insightful, and his previous myth buster, “What’s Age Got to Do With It? Debunking Myths Around Loan Officer Age,” is still a very popular read in STRATMOR’s Article Library.
Check out Jim’s July article and be sure to read Mike Seminari’s Borrower Experience article on a related topic: “Who are the Most Tech Savvy Borrowers?” You may see a few of your paradigms shift after reading this issue — if you’d like to get a few of these great ideas to take flight, give STRATMOR a call.
By Jim Cameron July 2019
The popular, Emmy-Nominated TV show MythBusters was a weekly documentary in which two Hollywood special effects experts attempted to debunk urban legends by directly testing them. One of the top ranked episodes, “Duct Tape Island,” dropped these experts onto an island armed with nothing but duct tape. Their mission was to use it to source water, find food, build a shelter, and get off the island.
In the “Duct Tape Island” episode, Jamie Hyneman and Adam Savage confirmed that:
You can use duct tape on a deserted island to build a distress signal.
You can use duct tape on a deserted island to find food and fresh water.
You can use duct tape on a deserted island to build a shelter.
You can use duct tape on a deserted island to build a fire.
You can use duct tape on a deserted island to build a seaworthy boat.
And, if you can’t find the keys to your teenager’s car, it’s good to know you can use duct tape to move that car out of the way (in the follow-on episode, “Duct Tape Hour,” they lifted a 5,000-pound car).
Unlike the confirmed findings of the MythBusters duct tape experts where the myths were, in fact, true, STRATMOR believes that some of the commonly-held “facts” in our mortgage industry are truly myths that need to be debunked.
If your marketing-communications and technology strategy is aimed primarily at Generation Z, the under 25-year-olds, consider that this group had just three percent of mortgage loans in 2018. Find out about the larger, tech-savvy borrower segment — the 55+ group.
STRATMOR believes lenders can stabilize in the current environment and build a scalable foundation for future growth by focusing on three objectives: optimize the borrower experience, renegotiate long-term contracts and evaluate compensation plans.
There’s no doubt about it: consolidation in the industry is increasing. Sr. Partner Jim Cameron reports on the big jump in M&A activity from 2016 to 2018, the indicators signaling a down cycle and strategies for lenders in this challenging market.
Senior Partner Garth Graham lays out seven common-sense rules for achieving mortgage borrower satisfaction.