Let's Get Technical

Mortgage brokers need to increase the use of technology to drive profitability.

By Lisa Schreiber, Executive Vice President, American Brokers Conduit

Technology is driving a secular change in how mortgage brokers should approach the loan-origination process. With more competition and less volume, brokers must use technology as more than an access point. Technological advancements can help mortgage brokers expand their knowledge to improve the loan process and differentiate themselves among the competition.

To take full advantage of the tools available to interconnect data and service, brokers must become "embedded" within their wholesale-lending partners' technology platforms. These should help improve the loan process by allowing brokers to optimize productivity. They also should help reduce the time, cost, and risk factors associated with processing and closing loans. By being embedded in a lender's technology platform, brokers can automate their work flow and make better use of online training and marketing resources.

For a more efficient business, brokers must identify the tools that will help support and manage their business, not just individual functions. They also must identify efficiency areas, such as loan-origination systems (LOSs) that meet all processing needs, lender platforms that help expedite information to appropriate parties, and marketing and/or traning tools with expanded benefits.

When mortgage brokers open their LOSs, they should have a direct interface with their lending partners. Some LOSs have applications that allow brokers to exchange loan data quickly with their lenders and to conduct seamless transactions from their desktops. With these tools, brokers can price, lock and close loans more quickly and easily while meeting customers' needs efficiently.

With these applications, brokers also can access their lenders' web site and can review a comprehensive protfolio of prducts and services to better relate information to customers. Electonic-date transfers also are more efficient and less error-prone.

Today, mortgage brokers can use technology to establish a marketing advantage. To differentiate themselves, brokers can benefit from a variety of enhanced marketing materials designed to increate awareness. These include customized marketing materials that can be targeted to Realtors, consumers and other key influencers. Some lenders offer online marekting portals that allow brokers to mail or e-mail customized marketing materials that include brokers' photos, logos, and contact information. These marketing portals can allow brokers to stay in touch with their partners and clients and to establish a brand in the marketplace.

If business slows, mortgage brokers' long-term success also will be built on their knowledge of industry trends, proven origination techniques, and efficient and risk-free processes. They must continue to expand their knowledge by finding the right mortgage-based online learning community. 

Being able to participate in or to browse archived online mortgage resources, including seminars, lectures, articles, and interviews, will be a key catalyst to help drive profitable results.

In the past few years, the mortgage-lending business has experienced many changes. Further, consumers are much more knowledgeable about the home-lending process and are demanding more competitive products and a faster, more streamlined mortgage process.

To continue their success, brokers must increase use technology more to their advantage in their daily business. They should consult with key lending partners to review the wealth of technology and marketing tools available to help increase business in the most profitable way. 

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