The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

The finance and mortgage universe is made of many galaxies that have been expanding since its inception This year one galaxy is on a greater growth trajectorymdashthe purchase galaxy

With the influence of technology todayrsquos purchase market presents lenders with new paths to closing loans Lenders are improving business processes and creating better customer experiences As a result lenders are exploring new ways to gain a competitive edge by asking themselves this How can we differentiate our business in a way that captivates borrowers and keeps them engaged through a long purchase cycle

Thatrsquos where the Lenderrsquos Guide to the Purchase Galaxy comes in handy A collection of tried-and-true expert tips on best routes for navigating the growing purchase market yoursquoll want to store this in a safe easily accessible place You never know when yoursquoll need to find a new pathway to close

KeepCalm and use this guide to avoid the consequences of a terrible stupid catastrophe

Executive Summary

Donrsquot Panic

The finance and mortgage universe is made of many galaxies that have been expanding since its inception This year one galaxy is on a greater growth trajectorymdashthe purchase galaxy

With the influence of technology todayrsquos purchase market presents lenders with new paths to closing loans Lenders are improving business processes and creating better customer experiences As a result lenders are exploring new ways to gain a competitive edge by asking themselves this How can we differentiate our business in a way that captivates borrowers and keeps them engaged through a long purchase cycle

Thatrsquos where the Lenderrsquos Guide to the Purchase Galaxy comes in handy A collection of tried-and-true expert tips on best routes for navigating the growing purchase market yoursquoll want to store this in a safe easily accessible place You never know when yoursquoll need to find a new pathway to close

KeepCalm and use this guide to avoid the consequences of a terrible stupid catastrophe

Executive Summary

Best Routes

The Lenders Guide to the Purchase Galaxy

Best Route 1 Sell Service and Solution Not Product and Price 4

Best Route 8 Make Your Brand Come to Life 11

Executive Summary 2

Best Route 3 Put Customer Needs at the Center of Everything 6

Best Route 10 Create Customized Campaigns for Complex Conversion Cycles 13

Best Route 5 Call Pre-Qualified Borrowers on Fridays and Mondays 8 Best Route 12

Commit to a Process 15

Best Route 2 Invest in Early Education 5

Best Route 9 Ask the Tough Probing Questions Early 12

Best Route 4 Develop a Profile for Each Purchase Lead 7 Best Route 11

Unite Your Sales Force 14

Best Route 6 Change Your Trajectory With Enhanced Mortgage Content 9 Best Route 13

Have Real Estate Agents Working With You Not Against 16Best Route 7 Publish Your Expertise to Raise Your Reputation 10 Best Route 14

Maintain Customer Relationships for Life 17

Conclusion 18

Donrsquot Panic

Yoursquove been focusing on product benefits and price Yoursquore quick to give a quote but want to reduce abandon rates Itrsquos time to sell value and educate borrowers

The Journey

Move beyond traditional price and product emphasis and focus on the three Srsquos for successmdashstreamline specialize solve Gear your operations to provide simple streamlined processes for your customers Itrsquos all about ease and efficiency with todayrsquos borrower Create specialists that provide the highest level of expertise in product and process to create a ldquoconciergerdquo type of service

Move your sales force from traditional loan officers to advocates Focus them on being benefits-based advice-centered experts who truly help customers identify the right solutions for their purchase Donrsquot just focus on the mortgage aspect of the transaction but expand to identify the right type of loan programmdashwith the right payment for their budget optimum terms for both their short and long-term needs guidance on maximizing their purchasing power and advice on the purchase process

KeepCalm and rock the purchase market by providing borrowers full service that prepares them for the complete loan cycle and beyond

Dale is an industry trainer speaker and consultant for 22 years and founder of Mortgage Champions Hersquos trained over 450

lenders and is the exclusive sales and leadership trainer for LendingTree University He also founded Mortgage Professionals

Providing Hope a not-for-profit charity

Dale Vermillion bull President and CEO

Founder of Mortgage Professionals Providing Hope

Vermillion Consulting Inc and Mortgage Champions

dalevermillion

daledalevermillioncom

Best Route 1 Sell Service and Solution Not Product and Price

4 | The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

Yoursquove been focusing on product benefits and price Yoursquore quick to give a quote but want to reduce abandon rates Itrsquos time to sell value and educate borrowers

The Journey

Move beyond traditional price and product emphasis and focus on the three Srsquos for successmdashstreamline specialize solve Gear your operations to provide simple streamlined processes for your customers Itrsquos all about ease and efficiency with todayrsquos borrower Create specialists that provide the highest level of expertise in product and process to create a ldquoconciergerdquo type of service

Move your sales force from traditional loan officers to advocates Focus them on being benefits-based advice-centered experts who truly help customers identify the right solutions for their purchase Donrsquot just focus on the mortgage aspect of the transaction but expand to identify the right type of loan programmdashwith the right payment for their budget optimum terms for both their short and long-term needs guidance on maximizing their purchasing power and advice on the purchase process

KeepCalm and rock the purchase market by providing borrowers full service that prepares them for the complete loan cycle and beyond

Dale is an industry trainer speaker and consultant for 22 years and founder of Mortgage Champions Hersquos trained over 450

lenders and is the exclusive sales and leadership trainer for LendingTree University He also founded Mortgage Professionals

Providing Hope a not-for-profit charity

Dale Vermillion bull President and CEO

Founder of Mortgage Professionals Providing Hope

Vermillion Consulting Inc and Mortgage Champions

dalevermillion

daledalevermillioncom

Best Route 1 Sell Service and Solution Not Product and Price

4 | The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

Lenders beginning a purchase loan initiative are faced with new complexities when competing for the customer commitment beyond price and rate Creating a cultural shift to offer customers personalized mortgage advice is often misunderstood as being difficult How can lenders overcome these challenges

The Journey

Lenders should create a culture that ensures all loan options are available to the borrower upfront including specialty products Educate your mortgage professionals on how to properly introduce the various benefits of each loan scenario to the borrower By doing this your lenders will be more resilient to rate changes or variations in closing costs resulting in faster earned commitments from your borrower

Successful lenders take an intentional proactive approach to educating their clients early and often They leverage technology to ensure this process is effective and reduces the number of more costly client-facing meetings

KeepCalm and invest in educating borrowers upfront for more successful purchase experiences

Best Route 2 Invest in Early Education

With 28+ yearsrsquo experience as a mortgage executive business leader and mobile technology pioneer Dave has helped tens of

thousands of loan officers educate millions of homeowners to make confident informed mortgage decisions He is passionate

about improving the mortgage experience with mobile technology and is known for improving the quality of originator advice

Dave Savage bull FounderMortgage Coach

MortgageCoach

davemortgagecoachcom

5 | The Lenders Guide to the Purchase Galaxy

6 | The Lenders Guide to the Purchase Galaxy

Best Route 3 Put Customer Needs at the Center of Everything

Founded in 1990 Freedom Mortgage is a full-service lender licensed in all 50 states DC PR and the Virgin Islands

Stanley is a prominent business strategist community leader and an active member of both the MBA and the Housing Policy

Executive Council (HPEC)

Stanley C Middleman bull President CEO and FounderFreedom Mortgage Corporation

FreedomMortgage

purchaseinfofreedommortgagecom

Donrsquot Panic

Yoursquore great at meeting borrower expectations but understand each individual interaction is unique Itrsquos time to put those unique details yoursquove picked up on to use

The Journey

Putting customer needs above all other activity that surrounds us and occupies us is the key to success especially with purchase customers Many other things like regulatory changes political considerations interest rates macro trends and the competitive landscape require our time but they can often consume us There is nothing more important than listening to and reacting to customerrsquos needs The best way to exceed expectations is to stay focused and ask questions that help you provide a level of service customized to their preferences

KeepCalm and pay attention to the details that make each customer unique in order to really address his or her specific needs

Best Route 4 Develop a Profile for Each Purchase Lead

Garth has over 25 years of experience in sales and marketing ranging from Fortune 500 companies to successful startups

He was one of the founders of mortgagecom and was an executive at ABN-AMRO Mortgage before its $9 billion sale to

Citigroup in March of 2007 which closed before the market downturn

Garth Graham bull Senior PartnerSTRATMOR Group

STRATMORGroup

garthgrahamstratmorgroupcom

Donrsquot Panic

It takes six to nine months to monetize purchase pre-approval leads How can you effectively engage borrowers throughout this lengthy conversion cycle

The Journey

Converting a refinance lead is a linear processmdashyou start with the what the borrower has and sell them the option for a new loan usually to reduce payments or take cashmdashfairly simple Purchase is far more complicated with at least five different purchase profiles each with their own often circuitous path to closing Lenders need to determine the profile of each purchase lead based on where the buyer is in the purchase cycle so they can customize points of engagement for more effective campaigns

KeepCalm and use digital tools to customize campaigns and effectively manage complex purchase profiles

7 | The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

Borrowers are busy and your attempts to connect sometimes go unanswered How can you increase your chance to connect

The Journey

Think of the customer journey Borrowers are probably busy working during the workweek and save their house hunting for the weekends Take a more strategic approach in your outreach by calling pre-qualified borrowers on Fridays when the stresses of the week are winding down and excitement for the weekend is building Offer suggestions and helpful tips for borrowers to think about as they house hunt over the weekend Continue to be a helpful part of their journey by following up on Monday to see how their weekend house hunt went

KeepCalm and set up notifications in your lead management system so you can catch borrowers before they go house hunting

Best Route 5 Call Pre-Qualified Borrowers on Fridays and Mondays

Scott has been with Velocify for 3 years and works remotely out of Dallas He racks up approximately 100000 miles per year

visiting Velocify clients Prior to joining Velocify Scott was a Velocify customer at Nationstar Mortgage

Scott Payne bull Enterprise Account ManagerVelocify

Scott_Payne_

spaynevelocifycom

8 | The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

The mortgage industry has benefited from an influx of innovative digital automation offerings and yoursquove realized that simply deploying your automation solution is only half of the winning recipe Yoursquore looking to take the sophistication and distribution of your mortgage content up a notch but how

The Journey

To truly maximize the results of innovative automation successful lenders couple technology deployments with robust and greatly enhanced loan program and pricing content By leveraging advanced APIs theyrsquove elaborately integrated this content with systems used throughout the loan lifecyclemdashfrom lead generation to origination close and through investor delivery In doing so lenders have not only gone farther with the aforementioned results but they have also benefitted from enhanced workflow powerful data and analytics improved competitiveness and significant risk mitigation

KeepCalm and extend your investment by coupling mortgage technology with robust content

Best Route 6 Change Your Trajectory With Enhanced Mortgage Content

Bob leads Optimal Bluersquos corporate marketing and strategic alliances efforts He has more than 20 years of sales and

marketing experience in the mortgage lending industry and was a co-founder of Mortgagebot a leading loan origination

system sold to D+H in 2014

Bob Brandt bull Vice President Marketing and AlliancesOptimal Blue

OptimalBlue

bbrandtoptimalbluecom

9 | The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

Yoursquore engaging prospective borrowers through phone and email communication but so is everyone else How can you stand out from the crowd and position yourself as the go-to expert

The Journey

One way to keep your purchase origination pipeline full is to build relationships with financial professionals who can send you quality referrals To stand out from the crowd of originators knocking on the doors of financial advisers estate planners divorce lawyers and Realtors you will need a reputation of being the go-to expert for mortgage advice in your area One of the best ways to build up a reputation of expertise is to publish articles that provide information and advice to fellow mortgage professionals Write a blog offer to be the local mortgage expert for your cityrsquos newspaper or submit articles to national trade magazines Then when you meet with other financial professionals you will have a body of work you can point to that shows your expertise and value to them

KeepCalm and publish your mortgage expertise to stand out from the crowd and build stronger referral relationships

Best Route 7 Publish Your Expertise to Raise Your Reputation

Will is the editor of Scotsman Guide Residential Edition the leading resource for mortgage originators Every month

Scotsman Guide presents articles submitted by professionals from across the industry to inform and educate readers on a

variety of mortgage topics

Will McDermott bull Editor Scotsman Guide MediaScotsman Guide

ScotsmanGuideED

willmscotsmanguidecom

10 | The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

You know yoursquore not the only option out there for borrowers and this can be intimidating The best lenders focus on the customer experience but how can you replicate this for consistency across your organization

The Journey

The most important advice I can give is to focus on what you want to be known for your brand and making it come to life Take the time to clearly identify why people should want to do business with you what you stand for and what you stand against By going through this exercise you can advance the culture of your company to come into alignment and create the customer experience you want to be known for This will drive any necessary modifications operationally and on the front lines to create this experience That experience comes to fruition through every touchpoint including your website user experience how you interact through social media properties the content you share the marketing messages you communicate to inspire people to do business with you and the operational efficiencies you must achieve through technology processes and personnel

KeepCalm and create the optimal customer experience by developing your business around what you want to be known for

Best Route 8 Make Your Brand Come to Life

John is a Principal at Seroka Brand Development which provides brand development marketing public relations and digital

strategies to companies throughout the mortgage industry He has been published many times and speaks at industry events

John is also co-Chairman of the California MBArsquos Mortgage Technology and Marketing Committee

John Seroka bull PrincipalSeroka Brand Development

johnseroka

johnserokacom

11 | The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

Customers have questions but where do they go for answers They consult a variety of channelsmdashthe Internet their network and even you How can you stand out to get ahead of the curve

The Journey

Everyone wants lsquoday one certaintyrsquo as Fannie Mae now calls it You must ask all the tough probing questions so there are no surprises down the road You have to know their market products needed and expected timeframe Determine what you know you can deliver and do it before you said you would Communicate clearly consistently and before they expect it Communicate in writing video and verbally even when there is nothing to report Ask for referrals from all parties right from pre-approval through annual review

KeepCalm and exceed customer expectations by proactively communicating to deliver before deadlines

Best Route 9 Ask the Tough Probing Questions Early

Brian has over 30 years of mortgage banking experience In 2001 he personally funded $109M while managing a $2B

wholesaleretail business Under Brianrsquos tenure Countrywide Home Loans climbed from 11 to 1 in purchase loan ranking

(with 40 fewer originators than 2) and funded $5B annually

Brian Koss bull Executive Vice PresidentMortgage Network Inc

mnetmortgage

bkossgmailcom

12 | The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

You only have one chance to make a first impression so how can you ensure itrsquos a positive experience for customers

The Journey

Timing is everything but sending the right message to the right person at the right time is easier said than done Businesses struggle with finding the time and resources to create manage and distribute sophisticated email strategies Commit to setting up customized campaigns based on the profile of purchase leads and where they are in the purchase cycle Automating the process of delivering the right message at the right time to the right person is the best way to effectively engage consumers throughout the lengthy purchase cycle

KeepCalm and commit to the customer experience Start by ensuring all communications touchpoints meet perfection

Best Route 10 Create Customized Campaigns for Complex Conversion Cycles

Founded by Tim in 1999 SoftVu has become a powerful lead management and marketing automation company in the mortgage

industry In 2016 SoftVu created a secondary platform SeniorVu providing lead generation and marketing automation for the

senior living industry Tim is active in the Midwestrsquos entrepreneurial ecosystem and is Member President of Pipeline Entrepreneurs

Tim Donnelly bull President and CEOSoftVu

tdonnelly23

timdonnellysoftvucom

13 | The Lenders Guide to the Purchase Galaxy

4 | The Lenders Guide to the Purchase Galaxy14 | The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

The sales process for purchase loans is longer and more involved than it is for the refi process which means there are more relationships to manage and opportunities to leverage How can you ensure prospective borrowers donrsquot slip through the cracks during a more complicated buying process

The Journey

Relationships are the most important asset for retail mortgage lenders and loan officers Enable your loan officers to establish lasting relationships that grow referral business Each referral source should be seen as an extension of your sales force that has the ability to generate new business Unite your sales force by giving loan officers the tools to keep referral partners engaged with timely and continuous communication

The home buying experience is a major milestone in each customerrsquos life Unite your sales force so that they can get the information they need to share with borrowers quickly If you can help your sales force delight borrowers you can generate a stronger referral network

KeepCalm and unite your sales force to drive referrals

Best Route 11 Unite Your Sales Force

Nick Hedges is a 20-year veteran of the Internet and software as a service (SaaS) industry As the president and CEO of

Velocify he works with numerous large financial organizations to help transform their sales processes and increase revenue

Nick Hedges bull President and CEOVelocify

Nick_Hedges

salesvelocifycom

Donrsquot Panic

You established first contact with a borrower a few months ago and have continued to communicate but havenrsquot heard back from them Is it time to change your process

The Journey

Purchase borrowers come to us at varying stages in the home buying process In order to successfully serve these borrowers it is important to have a plan on how to 1) recognize and identify the stage they are in and 2) implement the proper follow-up to serve them The best lenders have a process that enables conversions to take place for up to 9-12 months after being introduced to the borrower Purchase success is based on commitment patience and careful monitoring of KPIs

KeepCalm and remember that purchase is a marathon not a sprint Build a model and stick with it

Best Route 12 Commit to a Process

Sam has been in the mortgage industry since 2002 Hersquos held various roles starting as a loan officer and later owning his

own mortgage company He joined LendingTree in 2013 as the Head of Sales and recently was promoted to GM of Mortgage

Sam Mischner bull SVP Head of Sales and GM MortgageLendingTree

LendingTree

Samtreecom

15 | The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

Premium service and quality are no longer competitive differentiators they are expected by todayrsquos borrowers With so many moving parts and relationships to manage during the purchase journey how can you bridge gaps with all parties to improve customer loyalty and provide a great homebuying experience

The Journey

With the shift from refinance to purchase lenders have entered into a new era This is especially true for direct-to-consumer lenders Over the past seven years refinance customers have been an easier sell with a simpler shorter process The purchase customer is different and requires a bit more attention to help guide them to close To help keep your customers ensure your loan officers are properly trained on developing strong relationships with the customer and understanding the nuances of working with real estate agents

The best way to do this is to leverage technology and services that enhance your communication processes with real estate agents Real estate agents are directly connected to borrowers and often have local lender relationships A strong relationship with the agent and timely communication from loan officers can make the difference in keeping your customer When real estate agents and customers are able to communicate with loan officers promptly customers experience an elevated level of service that puts them at ease as they make one of the biggest decisions of their life

KeepCalm and drive higher conversions by building strong relationships with your customer and real estate agents

Best Route 13 Have Real Estate Agents Working With You Not Against

Grant founded Home Captain after seeing challenges that direct-to-consumer lenders had in keeping their customers when the

customer started working with a real estate agent He then built an integrated platform connecting the lender customer and

agent driving conversions and Net Promoter Scores for their lender partners

Grant Moon bull CEO and FounderHome Captain Realty Inc

HomeCaptainUSA

grantmoonhomecaptaincom

16 | The Lenders Guide to the Purchase Galaxy

Donrsquot Panic

You just closed a loanmdashCongratulations Is it time to move on to the next customer

The Journey

The mortgage customer lifecycle is not a one-and-done interaction Itrsquos likely your customer will become a borrower again within the next five to seven years When you successfully close a loan with a new customer a door has opened that doesnrsquot need to shut Maintain engagement between borrowing cycles to earn repeat business Communicate important dates share helpful tips and keep customers informed to build a strong lasting relationship When the time comes for customers to borrow again or refer a lender your name will be top of mind

KeepCalm and keep borrowers engaged even after close

Best Route 14 Maintain Customer Relationships for Life

Chris Backe bull Enterprise Account Executive ndash MortgageVelocify

cbacke8

cbackevelocifycom

Chris has 15 years of sales and marketing experience in the financial services industry with specific expertise in technology

He possesses a solid understanding of the mortgage and banking industries the overall mortgage lifecycle and the

technologies that support the loan process Chris has substantial expertise with marketing automation CRM technologies

cloud computing and business process reengineering

17 | The Lenders Guide to the Purchase Galaxy

The modern mortgage market shows no signs of slowing investments in technology The best lenders are capitalizing on these advancements to deliver optimal borrower experiences Without the right technology lenders can easily get lost in the expansive new purchase market galaxy

As you consider new technologies to grow your business remember the purchase market is all about building effective relationships To keep opportunities from slipping through the cracks bring sales and marketing consistency to your entire business Turn disparate systems into a unified workflow so your loan officers can effectively manage relationships with referral partners proactively leverage opportunities to educate borrowers maintain compliance and track renewal opportunitiesmdashall within a single platform See how this works with Velocify

Conclusion

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Velocifyreg is the leading sales acceleration platform for the mortgage industry with more than 650 mortgage lenders using the solution today Velocify helps loan officers find and engage more borrowers stay focused on the highest priority opportunities and ultimately close more loans

Velocify was voted the best software for sales teams by customers on G2 Crowd and has been recognized as one of the fastest growing companies in North America by Deloitte and Inc For more information about Velocify or its technology please visit the companyrsquos website and blog or follow the company on Facebook Twitter LinkedIn or YouTube