techlive - fintech solutions to digital mortgage
TRANSCRIPT
POLLEV.COM/MBAMeeting
TechLive - Fintech Solutions to Digital Mortgage
January 23, 2018
Garth Graham Senior PartnerSTRATMOR Group
Your Logo here
POLLEV.COM/MBAMeeting
Fintech Solutions to
Digital Mortgage
Moderator:Garth Graham, STRATMOR Group https://www.linkedin.com/in/garthgraham
POLLEV.COM/MBAMeeting
POLLEV.COM/MBAMeetingPOLLEV.COM/MBAMeetingReal TIME Polling:
• Please use your phone or computer and browse to URL
• OR you can download the app
• You do NOT need a login
• You can also TEXT if you prefer
• You will be asked questions
• And can ask questions of panelists
POLLEV.COM/MBAMeetingToday’s Discussion
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1. What is driving the Digital Mortgage trend and…
2. Review innovation around Social Media
3. Digital Point of Sale Solutions
4. Mobile Loan Originator Solutions
5. Digital Closing Process
6. eWarehouse
7. LOTS OF TIME FOR QUESTIONS
POLLEV.COM/MBAMeetingDigital Mortgage
Digital Mortgage Defined (STRATMOR)
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1. The ability to interact with the consumer across all potential
interaction methods (Web, Text, Email, Mobile, Chat and Voice) in
the way they want to interact.
2. The ability to generate data to support the loan file RATHER than
documents (less stare and compare).
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POLLEV.COM/MBAMeetingRising Mortgage Origination Expenses
Production Expense ($/loan)
• Costs continually rising since 2010 with retail over $7,000 per loan
• Sales and Marketing represent over 70% of total production expense, and have increased over $1,700 since 2010
• Production Expense (Direct Expense) is all costs from point-of-sale through closing
• Production technology is system expense to support the origination process (LOS, CRM, Docs, Closing, etc.)
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3,107 3,178 3,402 3,796 4,254 4,430 4,841 5,083
1,158 1,195 1,4031,733
1,759 1,8361,987 2,086
87 105109
151182
212
204210
0
2500
5000
7500
2010 2011 2012 2013 2014 2015 2016 2017 Fcst
Retail Sales and Marketing Exp - $/Loan
Retail Fulfillment Expense - $/Loan
Production Technology
2010 2011 2012 2013 2014 2015 2016 2017 Fcst
Retail Sales and Marketing Exp - $/Loan 3107 3178 3402 3796 4254 4430 4841 5083
Retail Fulfillment Expense - $/Loan 1158 1195 1403 1733 1759 1836 1987 2086
Production Technology 87 105 109 151 182 212 204 210
Source: PGR: MBA and STRATMOR Peer Group Roundtables
POLLEV.COM/MBAMeetingRetail Mortgage Banking - Trends
• Q2 2017
profitability at 10
bps
• As low as late
2013 / early
2014
• When refi drops,
profits drop too
MBA Quarterly Performance Report
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POLLEV.COM/MBAMeetingDigital Mortgage
Customer Satisfaction is Impacted by Turn Times
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MortgageSAT - PURCHASE SERVICE LEVELS• STRATMOR surveyed
150,000 closed loan
borrowers in 12 months
• 20% of the time closed in
less than 30 days
• Satisfaction is MUCH
lower when turn times are
> 45 days
• Net Promoter Score (NPS)
drops dramatically – losing
the promoters
POLLEV.COM/MBAMeetingDigital Mortgage
Refinance—Customer Satisfaction
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• Refinance Borrowers do not
want to wait for lower
payments.
• Only 20% of the time does a
refi close in less than 30 days
• Customer satisfaction also
drops at 45 days
• Net Promoter Score (NPS)
drops to 61 or less after 60
days
POLLEV.COM/MBAMeetingDigital Mortgage
Technology Investment Has Gone Up!
Source: PGR: MBA and STRATMOR Peer Group Roundtables
• Large banks, who mostly
have custom built
technology solutions,
spend over $1,000 per
loan
• Independent Mortgage
Bankers, and smaller
Bank lenders spend an
average of ~ $250 - $350
per loan
POLLEV.COM/MBAMeetingDigital Mortgage
The Obvious Conclusion…
It’s almost
IMPOSSIBLE for a
lender to spend
TOO MUCH money
on Technology if the
ROI is delivered.
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POLLEV.COM/MBAMeetingDigital Mortgage
Digital Mortgage Blueprint
1. Understand the Buyer’s Journey
2. Add new Digital Touchpoints
3. Enable Data Connectivity
4. Gather Rich, Actionable Customer Data
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POLLEV.COM/MBAMeeting
POLLEV.COM/MBAMeeting
Bob Brandt has more than 20 years of experience leading successful, high-performing sales and marketing teams in the financial services industry.
Bob manages the marketing and strategic alliances departments for Optimal Blue. Prior to Optimal Blue, Bob established and managed the sales and marketing organization at Mortgagebot, a leading technology service provider in the mortgage industry. Under Bob’s direction over the initial 15 years from its founding, Mortgagebotacquired productive, multi-year relationships with more than 1,500 banks and credit unions nationwide and was named to the Inc. 500 list of America’s fastest growing companies.
Bob holds a BBA degree in Finance, Investment, and Banking from the University of Wisconsin – Madison and an MBA degree from Marquette University.
Bob Brandt Vice President
(469) 609-5585
https://www.linkedin.com/in/rjbrandt/
www.optimalblue.com
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The mortgage industry’s digital marketplace
connecting lenders, investors, and providers.
Bob Brandt Vice President
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• Founded in 2002, a privately-held company with +300 employees dedicated to the mission of
facilitating digital transactions between buyers and sellers of loans.
• Optimal Blue is the most-widely used secondary marketing automation platform in the industry:
+180,000 users +1,800 clients +180 investors
+50% of the Top 500 Lenders
• Optimal Blue touches 1 of 4 mortgages closed each year and delivers significant client results:
+200 million searches +800 million pricing combinations
+$540 billion of rate locks +$60 million of loans committed
• Extensive library of Application Programming Interfaces (APIs) bring real-time, highly accurate
product and pricing to over 30 leading technology solutions across the loan life cycle.
Corporate
Overview
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The mortgage industry’s
digital marketplace.
Originators | Investors | Providers
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IntroducingThree New Innovations
1
2
3
MORTGAGE
BANK
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Business
Intelligence1
Improve
transparency,
eliminate
spreadsheets
Identify trends with intuitive, vivid reporting
solution
Adapt to market change, profitably drive
expansion
Easily understand behaviors behind
your activity
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Social Media
Compliance2
Social Media…
A Powerful Business
Development Tool
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Social Media
Compliance
Social Media Execution Risks
Financial
Risks
Regulatory
Risks
Operational
Risks
Reputational
Risks
2
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DIGITAL MEDIA
Social Media
Compliance2
Manage corporate accounts in a more
secure environment. Team access and
outsourced providers for publishing to
multiple networks.
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PUBLISHER
Social Media
Compliance2
+ Multi-Platform Sharing
+ Create Content for Distribution
+ Schedule Campaigns
+ Empower Loan Officers
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COMPLIANCE
SCHEDULER
Social Media
Compliance2
“Optimal Blue is highly automated. The
system does the work. It is such a big
improvement from our previous manual
processes.”
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REPORTING
Social Media
Compliance2
Built in reporting that is exportable for
management and regulatory review.
Reduce the amount of time spent in
audits.
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API Partner
Ecosystem3
Optimal Blue API
Real-time product & pricing to any system throughout the
loan life cycle
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API Partner
Ecosystem3
Dynamically embed real-time
product & pricing on social and print
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API Partner
Ecosystem3
Ensure pricing accuracy by product, region, branch, or loan officer
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API Partner
Ecosystem3
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API Partner
Ecosystem3
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API Partner
Ecosystem3
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API Partner
Ecosystem3
Improve point-of-sale
conversion with live
product & pricing
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API Partner
Ecosystem3
Improve point-of-sale
conversion with live
product & pricing
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API Partner
Ecosystem3
Embed live Optimal Blue
product & pricing in a robust
mobile experience for loan officers and realtors
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How can we help you?
Keith Anderson952-412-2295
Jeremy Moreno303-526-8937
POLLEV.COM/MBAMeeting
Total ResponsesHow many of the pos solutions are you integrated with?
The Optimal Blue Partner Ecosystem includes real-time API integrations with more than 10 POS solutions.
What about 3rd party fees. How should we handle that.
The Optimal Blue API returns all of the product and pricing information for each request made, including the fees that affect the Optimal Blue APR calculation.
Isn't the social media too big brother.
Optimal Blue's social media compliance solution automates the compliance around lender's social media policy, which often include the regulatory requirements around consumer protection. Most often configured to randomly review the public social media posts of a subset of employees, Optimal Blue's social media compliance solution not only helps lenders identify social media activities that can cause financial and reputational risks to lenders and their employees today, but also to identify training opportunities to protect them in the future.
Can LOs decode what's get posted?
Yes, the Optimal Blue API shares the lender's product and pricing specific to each and every loan officer and/or branch. With Optimal Blue, loan officers and the organizations they represent set their pricing specific to all of the adjustments appropriate for each and every scenario including those adjustments specific to each loan officer.
For an IMB - what are the best 2 benefits of the Business Intelligence piece
With Optimal Blue's Business Intelligence solutions, lenders are provided with an enormous amount of transparency about what is happening inside of their business with quoting, locking, and much muchmore. The tool helps them understand trends within their business to make better decisions and pursue opportunities faster. Another important benefit from Optimal Blue's Business Intelligence solutions is the competitive analysis capabilities. With interactive reports, lenders can see how they compare to the overall market by rate, product, FICO, and more - nationwide, by state, or even by each MSA across the country.
POLLEV.COM/MBAMeeting
POLLEV.COM/MBAMeeting
SimpleNexus Digital Mortgage Platform
Presented by
Joe Wilson
Chief Marketing Officer
SimpleNexus
POLLEV.COM/MBAMeetingEmpower Your Loan Officers
Providing a BetterBorrower Experience
Partner Better with Realtors
and Increase Your Referral Pipeline
Mobilize Your LO’s with a
Better Tool that Connects All the Essential Functions
Mobile Originator
POLLEV.COM/MBAMeetingEmpower Your Loan Officers
Efficiency
Updates Messaging
Borrower
CRM LOS
AMC
Credit Documents
Loan Officer Pricing
Realtor
POLLEV.COM/MBAMeeting
Digital Mortgage Platform
A Better Borrower
Experience
POLLEV.COM/MBAMeeting
A Better Borrower
Experience
Digital Mortgage Platform
POLLEV.COM/MBAMeeting
• Home Search
• Payment Calculators
• Loan Application
• Loan Status
• Secure Document Upload
A Better Borrower
Experience
Digital Mortgage Platform
POLLEV.COM/MBAMeeting
A Better Tool for your LOs
• View Pipeline
• Pull Credit
• Run Pricing
• Asset Verification
• Pre-Qualification Letters
Partnering Better with
Realtors
A Better Borrower Experience
Digital Mortgage Platform
POLLEV.COM/MBAMeeting
A Better Tool for your LOs Partnering Better with
Realtors
A Better Borrower Experience
Digital Mortgage Platform
POLLEV.COM/MBAMeetingDoes this integrate with any Los systems ?Yes - We have bi-directional integrations with the major LOS systems. That will remain your system of record and where your operations team will continue to work from. There is absoloutely no manual duplication of data.
What's the difference between native and web? What more can you do with app?
SimpleNexus offers both Native and Web functionality. The benefit to the Native app is the ability to co-brand with your Realtors, offers additional security for document uploads and viewing sensitive borrower data. Through the native, white-labeled app, you also receive higher engagement and more regular usage than a web site.
Do you have Realtor version?
Yes - Each LO can have unlimited number of co-branded Realtor apps and websites. This allows the Realtors to be engaged through the entire loan lifecycle, include their contact info, listings, customer reviews, etc… They are also automatically kept up to date through the loan process.
How much does it cost?Our costs are based on a per-user basis and sold at an enterprise level to each company. Each situation is unique and depending on the integrations, the costs can vary. Please contact us for a specific quote.
Can an LO buy it or only a lending company? We license SimpleNexus directly to mortgage lenders, banks and credit unions.
Does Simple Nexus interface will all existing LOS'?We have bi-directional integrations with Ellie Mae Encompass, Byte, PCLender, Calyx Point and LendingQB. We do have companies that use Mortgagebot, Mortgage Candence and several others on a semi-automated integration.
Are most of your clients banks or independents? Most of our clients are Independent Mortgage Bankers.Anything for servicing.? Not today.
How is credit secure if LO loses phone?
We have employed multi-factor authenitcation to securely order and view credit reports. Experian, Equifax and TransUnion have each approved SimpleNexus to allow this functionality. Additionally, companies manage access, so if an LO loses their phone, an admin can revoke all access immediately.
Does simple nexus have other pricing engine relations besides the one with optimal blue? Today we only offer pricing integration through Optimal Blue. Ability to run AUS? We are working on AUS integrations currently with Fannie Mae and Freddie Mac for the upcoming quarters.If we have a specific panel in Mercury could system select from our panel?
Our AMC integrations are direct to the software that is used by your AMC (for instnace, Mercury). The integration automatically sends the status updates and documents directly to the LO.
Are status updates being pushed to the borrower on their devices?
Yes - statuses are sent directly to the Borrower (LO and Realtors, too) via a push notification (text, or e-mail, too). Lenders get to decide exactly which statuses are pushed and are real-time as the data changes in the LOS.
Does it interface with the different LOS applications?We have bi-directional integrations with Ellie Mae Encompass, Byte, PCLender, Calyx Point and LendingQB. We do have companies that use Mortgagebot, Mortgage Candence and several others on a semi-automated integration.
4506 integration? We do not have any 4506-T integrations today. That is ordered via the LOS.
Asset and income integrations?SimpleNexus is integrated directly with FormFree AccountChek product to offer automated asset verification (which will also soon offer Income and Employement verification)
Is there a way to have a companies fees integrated so an APR can be calculated with Mobil app? Yes, this is configurable by lender.
Are you day 1 certainWe offer an integration with FormFree for the asset verification. Employment verification is run through the LOS to complete Day 1.
POLLEV.COM/MBAMeeting
POLLEV.COM/MBAMeeting
You spoke last year also- what are the 3 largest changes/improvements Blend has developed over last year
a. Data-driven Mortgage Intelligence®: Blend Mortgage Intelligence goes beyond automation with next generation technology, allowing a lender to personalize the borrower experience and conditions based on 6 critical decision sources - lender configurations, credit report info, data from the product and pricing engine, automated underwriting systems (DU runs), data analytics, and investor guidelines. The days of static “app packs” are over!b. Lender Workflow(s) and Tools: Blend’s empowering and engaging borrower experience delivers some of the industry’s leading performance metrics (i.e., NPS, connectivity, pull-through, etc) and now this focus has been applied to the platform’s most important users - the loan team member. With workflows and experiences to support major point of sale workflows like efficient data entry, product and price candidacy, and borrower support the Blend Lender experience empowers the loan team member to provide the experience of their aspiration. Whether a loan team member seeks to grow their business or sustain with greater efficiency, Blend will be their ally. c. Built out Customer Success Teams: We’re proud of the platform we’ve built however we are humble enough to recognize that even great technology absent other ingredients can fail. Over the past year, Blend has built out world-class teams dedicated tobeing a catalyst for customer success. Whether it’s deployment, help and support, marketing, or training and utilization ourdedicated account managers have the talent and expertise needed to support a customer at any stage of their lifecycle.
Do you have a mobile app?
. Yes, our borrower application is built mobile-first in responsive HTML 5 for a great experience on any device. Additionally, we have a purpose-built mobile app for our lender users offering them direct access to the insights and capabilities they need to drive their business.
Can I embed the app into my website? . Yes, the Blend application can be woven seamlessly into a lender’s existing marketing and technology stack.
Big independents customers or mostly banks?. Blend has an almost equal mixture of lending institution (i.e., bank, credit union, and non-bank), go-to-market channels (i.e., call
center, retail, consumer direct), and coverage throughout all 50 states.
Are you D1C certified?
We're in Pilot with Fannie Mae and expect to be certified in a matter of days or weeks. As a Day 1 Certainty approved vendor,Blend will offer these benefits seamlessly integrated into the consumer experience – no additional borrower or lender actions required. This leads to borrowers choosing to connect to their financial accounts, making more of your portfolio eligible for Day 1 Certainty, delivering business efficiency and reducing funding times.
Do you have diaclosurs?
. Blend’s disclosures support depends on a lender’s LOS and/or document generation provider. Thanks to our Encompass® Partnership, we have a lenders piloting disclosures in production today. Later this quarter, these pilots will yield a tested, hardened, and document template rich platform to rapidly expand lender coverage to all of our partners whose business relies on the Encompass® LOS partners. Where LOS integrations for disclosures are not feasible we will integrate directly with their document generation providers.
POLLEV.COM/MBAMeeting
Can someone pay upfront fee and schedule appraisal ?
. Blend’s disclosures support depends on a lender’s LOS and/or document generation provider. Thanks to our Encompass® Partnership, we have a lenders piloting disclosures in production today. Later this quarter, these pilots will yield a tested, hardened, and document template rich platform to rapidly expand lender coverage to all of our partners whose business relies on the Encompass® LOS partners. Where LOS integrations for disclosures are not feasible we will integrate directly with their document generation providers.
What benefits have been generated? Like more apps or faster pull through or what?
. Blend is helping our customers grow their business, operate more efficiently, and realize ROI from their new and existing technology investments. The benefits realized depend on a variety of lender factors but below is illustrative to what a new lending partner could achieve.i. NPS of 60+ to activate borrower referralsii. At least 50% less touches to satisfy conditions for greater efficiency through fundingiii. Reduction in funding cycles by 7-10 days for less committed capital and rate exposureiv. Immediate and ongoing ROI through flexible and extensible platform
How do companies brand themselves on the platform.
. The Blend design and marketing teams work closely with each of our lending partners to ensure that their brand is expressedthroughout the experience - beyond just the technology experience. These valuable insights, inspiration, and examples are pulled from our size (60+ customers and hundreds of thousands of interactions) positioning lenders of all shapes and sizes to achieve their marketing aspirations
Status updates?
. Today, the Blend platform provides borrower and lender notifications based on activities (that remain or have recently beencompleted). In Q1 we will expand this framework to include loan status based notifications to borrowers, lenders, and real estate agent. And throughout 2018 we will add additional status notification options in the form of additional channels and trustedparticipants.
How are you working with movement mortgage?
Movement Mortgage is an incredible lending partner. Their loan officers are originating directly via Blend as well as inviting their borrowers via Blend to complete their own applications and connect directly to needed data and documentation. Their mission and opportunities inspire and challenge. They have been, and continue to be, an educator and catalyst for Blend to strive to be better.
Is this approved by state of New York. . Blend is supporting many lenders who originate in the state of New York. Do you integrate with doc requests from the LOS?
. Yes, we integrate directly with document APIs available by major LOS providers. Where direct integration is not supported, we will explore other avenues available such as middleware.
Who are your biggest client now. Wells Fargo and US Bank are our two largest, but we also work with many non-bank lenders, smaller community banks, and
credit unions.I've heard you're working on integrating with Total Expert. It will be awesome to have your information integrated with my CRM.
Blend is interested in integrating with all best of breed providers relevant to lenders. Today, we integrate with multiple CRM providers including Total Expert. With our bidirectional information flow, Blend and your CRM share a single view of the data driving your business.
POLLEV.COM/MBAMeeting
POLLEV.COM/MBAMeeting
POLLEV.COM/MBAMeeting
POLLEV.COM/MBAMeeting
Collaboration and Post Closing
January 23, 2018
Presented by
Jamie Williamson
VP Sales
POLLEV.COM/MBAMeeting
Simplifile
• Proven and Trusted
• eRecording – electronic recording of documents for agents and counties
• 17 years and over 17,000 settlement companies and 1,700 counties
• 15Mil+ transactions annually
• 3 Additional Solutions for Lenders
• Pre Close Collaboration for documents and fees. Easily make changes,
respond to updates, and manage deficiencies on specific documents or fees
• Post Close electronic automated return of recorded documents, final fees, final
title, executed closing package, etc.
• eMortgage – working with partners to connect lenders and agents for hybrid,
full eSign including eNotes, and Post Close
POLLEV.COM/MBAMeeting
Are you Encompass integrated? Yes. Encompass has built a tight integration
How do you get agents to use the platform. They seem to revert to regular process on purchase. You the lender has to demand it and we support the rollout, training, and follow up
What do you do if the uldd or UCD isn't filled out completely? The data would have to be entered manually when avaiable
If docs are e-recorded is there a cost or fee savings to the consumer? In some states yes. But for the most part no.
POLLEV.COM/MBAMeeting
POLLEV.COM/MBAMeeting
eWarehouse
January 23, 2018
Presented by
Tim M. Anderson
Director eServices & Strategy
DocMagic, Inc.
POLLEV.COM/MBAMeeting
POLLEV.COM/MBAMeeting
POLLEV.COM/MBAMeetingDigital Mortgage
Connect with Me
GARTH GRAHAM
STRATMOR GROUP.COM
www.linkedin.com/in/garthgraham/
http://www.stratmorgroup.com/stratmor-
insights/
https://twitter.com/garthgraham
(954) 325-7816
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