October is always a busy month at STRATMOR. We were looking forward to another great MBA Annual Conference, this year in Austin, even as we finalized one of our more ambitious projects, the 2019 Technology Insight™ Study. This is the fifth year for this study and each year, the number of lenders who participate has grown, giving us more data to analyze and share with the mortgage community. A big “thank you” to all our participants for making 2019 the best year yet!
The lead story in this issue focuses on key takeaways from the 2019 study and is written by the head of our Analytics Team, Senior Partner Nicole Yung. Nicole lives in the analysis, and when she spots interesting data, you can be sure she’ll find the story behind it. Woven throughout the 2019 study is the lender’s desire to enable technology that creates a better borrower experience. In fact, study participants rank “increased borrower satisfaction” as the top perceived benefit of new digital capabilities. Be sure to read, “Six Key Takeaways From the 2019 Technology Insight™ Study.”
Our Borrower Experience article this month is “A Tale of Three Borrowers” by Lisa Grote, our Marketing Director and editor of the Insights Report. The borrowers are STRATMOR experts, and the stories they tell about their recent experience with the origination process offer unique insights into what other borrowers might — or might not — know about how the process works. Take a few minutes to read this article and see if any of the tales strike a chord.
Thank you for joining us for the October Insights Report.
By Nicole Yung October 2019
Steve Ballmer, CEO of Microsoft from 2000 to 2014 and current owner of the Los Angeles Clippers once said that the number one benefit of information technology is that “It empowers people to do what they want to do. It lets people be creative. It lets people be productive. It lets people learn things they didn’t think they could learn before, and so in a sense it is all about potential.”
Potential is what STRATMOR is sharing in this article with the key takeaways for our 2019 Technology Insight™ Study — the potential in data that shows mortgage technology enables a better borrower experience. And yet, even as technology enables, it is mortgage professionals, empowered by technology to do what they do, who have the greatest potential to make the borrower’s experience delightful.
“The online digital experience doesn’t negate the need for human interaction,” says STRATMOR CEO Lisa Springer. “At the MBA Tech Solutions Conference earlier this year, Grace Qi, product manager of Intelligence with Blend, shared a fantastic analogy about how Artificial Intelligence (AI) was able to beat a Grand Master at chess, but, when the combination of Grand Master and AI played AI, the combined computer/human team won.
“The optimal borrower interaction should combine automation with human cognitive abilities, such as emotional intelligence (EQ) with borrower-facing interactions,” says Springer. “That’s how the mortgage industry will truly optimize the borrower experience.”
Here are the six key takeaways from the 2019 Technology Insight™ Study.
Behind every mortgage loan experience are multiple stories: This is a tale of three borrowers and their very different loan origination experiences.
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.
Senior Partner Garth Graham lays out seven common-sense rules for achieving mortgage borrower satisfaction.
For Banks and Independents, the question of whether to retain more, or less, servicing in the current mortgage environment really depends on capital/cash, accounting, risks and mortgage policy–and the lender’s overall mortgage strategy.