2011 lotusphere presentation signature mortgage

8/7/2019 2011 Lotusphere Presentation Signature Mortgage

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© 2011 IBM Corporation

Bob Catlin | CEO and Founder Signature Mortgage Corporation

Gaining a Competitive Edgein the Mortgage Industry



© 2011 IBM Corporation 3

About Signature Mortgage

● Regional mortgage provider and Inc. 500 company

● Servicing Ohio and Florida

● 12 employees generate $4M

in annual revenues● $2 billion in residential loans

since company inception

● Our competitive edge: ─ State-of-the-art, e-Commerce technology

─ Exceptional service + lowest rate possible




The Changing Industry

● Existing mortgage crisis: ─ As of 2007 – falling home prices, poor

economy, job loss, and panic

─ Record level of foreclosures and short sales

─ Mortgage graveyard – over 800 mortgage-related financial institutions have gone under

─ New purchase business at record lows

─ Less customers and revenue per loan

● Internet lead generation: ─ Tens of thousands of leads generated daily

─ Consumers searching terms and conditions

─ Cut-throat pricing and sensationalguarantees

Must Compete for a Smaller Pool of Qualified Customers, and

Quickly Upgrade Technologies to Win Internet Consumer Leads




The Changing Consumer

● Better access to accuratemortgage info via the web:

─ Receive numerous competing offers /shop till you drop mentality

─ Conduct business on their terms and time

─ Demand the best rate, lowest cost,

and easy, hassle-free experience

● Mortgage web activity is nolonger a luxury. It's a necessity!

─ Research rates and terms on-line quicklyand easily.

─ Completing applications online is essential

Competing on rates alone isn't enough.




● 32 documents and growing: ─ Loan application, disclosures, and other

docs must be reviewed and signed

─ Customer must provide supportingdocuments (i.e. proof of employment,insurance, revenue reports, etc.)

● Must be correctly executed tomitigate risks:

─ Failure to comply with regulations leads tofines

─ Failure to properly execute transaction leadsto legal disputes

─

Poor customer experience if documentsmust go back for correction

The Challenges of Delivering ExceptionalCustomer Service




The Problems with Manual, Paper-BasedProcessing of Mortgages

● Inconvenient: ─ Customers must travel to the documents:

(i.e. retail branch)

─ Documents must travel to customers(i.e. home, work)

● Time-consuming: ─ 7+ days to complete a mortgage application

─ Increases shop-around and drop-off risks

─ 45+ days to close the mortgage:





● Affects rates and revenues: ─ Rates fluctuate daily

● Most providers guarantee ratesfor 30 days:

─ Customer will not get promised rate if it

takes 45 – 60 days to get to closing

● Shorter rate locks benefit boththe customer and provider:

─ Ex: $200,000 loan @ 4.75%, 30-year fixed

─ 60 day lock = $3,000

─ 45-day lock = $3,400

─ 30-day lock = $3,900

─ 15-day lock = $4,500





● Prone to errors: ─ Missing documents, data, signatures, initials,

etc.

●

Increases risks: ─ Processing errors lead to regulatory fines,legal disputes, damage to reputation

● Costly: ─ Paper, shipping, QA, scanning, data re-

keying, follow-up calls to customers, etc.




Moving Mortgage Processing to the Web

● Electronic signatures are key: ─ Saw the benefits of electronic signatures

at Quicken Loans

● Signature Mortgage's challenge: ─ Limited IT infrastructure, budget and

resources ─ Could not invest in the large enterprise

platform solution

● e-SignLive and LotusLive theanswer:

─ Cloud-based services: No software or

hardware to purchase, integrate, deploy,or update

─ Subscription-based model: Licenses for staff / customers use free of charge

─ Quick time-to-market: Up and runningin 48 hrs.




Executing the Mortgage ApplicationUsing e-SignLive

Co-Borrowers Can Be in Different Locations

http://www.




Executing the Mortgage ApplicationUsing e-SignLive

Customers ReceiveEmail invitation1. Logs Into Service2. E-Sign Consent3. Guided ReviewProcess4.

Visual SigningPrompts5.

Loan Officer NotifiedWhen Completed6.

Verifies & Closes theSigning Session7.

Secure CopiesDelivered8.




Leveraging the Online Collaboration and SocialNetworking Features of LotusLive

● Create a more personal webexperience:

─ Virtual “face-to-face” meetings

─ Web meetings and video conferencing

● Guide customers through themortgage process:

─ Application sharing

─ Desktop sharing

─ File sharing

● Capture customer satisfaction

and feedback: ─ Online surveys




The Impact on Our Business

● Faster loan processing: ─ Applications returned in 24 – 48 hrs

versus 7 – 10 days

─ Loans closed in < 25 days vs.45 – 60 days national average

● Higher volume, revenues &profits:

─ 34% increase in loan volume

─ Loan revenue has increased 15 - 25 basispoints ($350 - $500) per loan

─ $30K additional revenue per month

─ Shorter rate lock = more income per loan

● Reduced processing cost: ─ 85% reduction in shipping costs

─ $1,500 hard cost savings per month

● Ability to expand nationally: ─ Enables us to move into other states

A game changer... exponential growth opportunity.




The Impact on Staff

● Getting internal buy-in was key: ─ From concept, to beta testing, to

deployment, to launch – staff wasfully on-board

● Improved loan officer morale: ─ Technology used as a competitive

differentiation ─ Communicate with clients with confidence

and impact

─ 90% of mortgages are now e-signed

● Internal staff are impressed: ─ Easier to recruit new staff

Loan officers believe they can compete with national players.




The Impact on Customers

● Creates a sense of urgency: ─ So quick, feel compelled to complete the

process.

─ Some applications returned in 30 min.

● Less likely to shop around: ─

“Wow, these people don’t mess around”./ Feel they are in good hands.

─ Emotional commitment / Feel they’ve madethe right decision

● No longer make changes: ─ Clients now sign without trying to change

any language on our forms.

● Creative, fun, and hassle-free: ─ “Is that it? Wow… that was easy.”

─ Relationship begins on a strong foundation

─ Prevents competition from sneaking back in

90% of our clients use the technology.




Unsolicited Customer Feedback

“My husband and I usually work with our local bank for financing andrefinancing our home loan. Signature Mortgage offered us better termsand conditions, but most of all we were sold on their e-sign capabilities.We have careers and kids and we just couldn't find the time to go tothe local bank branch between 9am-5pm. This was the fastest andsmoothest process we have experienced.”

John and Kathy MitchellCincinnati, OH

“I was intrigued by Signature Mortgage's e-sign technology and was alittle skeptical in the beginning. Wow! Now this is how applying for ahome loan should be! Easy, fast and hassle free. Our loan was closedin 18 days. It's funny, our local Credit Union called about the status of our refinancing with you and we told them we already closed our loan.They couldn't believe how fast everything was completed. They aretaking 45 days or more! Thanks for everything.”

Mark BishopCleveland, OH

“I was very impressed with your e-sign capabilities, timeliness andorganization of the entire process. Great job! I will definitelyrecommend you to my friends and family. Unbelievable technology.”

Steve TempleLiberty Twp, OH




Conclusion

● Consumer intelligence andexpectations have dramaticallyincreased

● Web-based mortgage activityis no longer a luxury. It's anecessity

● Reducing processing andunderwriting time are critical tothriving

●

Most only consider the tangible,bottom line benefits

● The intangibles ensure youachieve ROI




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