Customer Service Archives - Scotsman Guide https://www.scotsmanguide.com/tag/customer-service/ The leading resource for mortgage originators. Tue, 19 Dec 2023 00:03:44 +0000 en-US hourly 1 https://wordpress.org/?v=6.0.2 https://www.scotsmanguide.com/files/sites/2/2023/02/Icon_170x170-150x150.png Customer Service Archives - Scotsman Guide https://www.scotsmanguide.com/tag/customer-service/ 32 32 Author Showcase: Rich Leffler, AxSellerated Development https://www.scotsmanguide.com/podcasts/author-showcase-rich-leffler-axsellerated-development/ Mon, 18 Dec 2023 22:21:17 +0000 https://www.scotsmanguide.com/?p=65571 In Episode 024 of the Scotsman Guide Author Showcase, Carl White interviews Rich Leffler of AxSellerated Development about his article, “Build a One-Stop Shop,” in the December 2023 issue of Scotsman Guide Residential Edition. Rich Leffler is the director of training/senior instructor for AxSellerated Development, which offers guidance that you need to pass the Nationwide Mortgage Licensing […]

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In Episode 024 of the Scotsman Guide Author Showcase, Carl White interviews Rich Leffler of AxSellerated Development about his article, “Build a One-Stop Shop,” in the December 2023 issue of Scotsman Guide Residential Edition.

Rich Leffler is the director of training/senior instructor for AxSellerated Development, which offers guidance that you need to pass the Nationwide Mortgage Licensing System (NMLS) test. An award-winning mortgage expert, business coach, and speaker, Leffler has excelled in customer service, research, mortgage origination, training and consulting. He regularly lectures on compliance, sales and winning customer-service strategies, and is available for in-house training, speaking engagements, tutoring, personal coaching, and seminars.

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Build a One-Stop Shop https://www.scotsmanguide.com/residential/build-a-one-stop-shop/ Fri, 01 Dec 2023 09:00:00 +0000 https://www.scotsmanguide.com/?p=65260 Add value for your clients by expanding your referral partnerships

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A business owner is only as successful as the people surrounding him or her. Practice this philosophy in your professional life and you’ll quickly see the validity of it.

As a mortgage originator, you’re the owner of your own business. You already make sure you’re working with quality management, processors, underwriters and closers. In addition, you should take an honest inventory of the other professionals you surround yourself with.

Successful mortgage originators thoroughly understand the importance of standing apart from their competition. To accomplish this, they must be able to provide their clients with more than uncompromising knowledge and service, competitive pricing and access to a wide selection of mortgage products. They must become a one-stop shop for their clients to access local knowledge.

Easing transition

Imagine that you’re embarking on a move to another state. So many concerns cross your mind. Of course, you need to find a place to live and have the money to afford it, but moving brings with it many other challenges. You’ll need to find reputable movers; establish new relationships with doctors, dentists and veterinarians; set up utilities; find new schools and child care; and find stores for shopping and new restaurants to try, just to name a few.

How much would you love your mortgage originator if they went above and beyond by providing you with trusted recommendations for other services that someone new to a community needs? What if they not only accommodated your home financing needs but also connected you with a competent real estate professional, title company, home inspector, insurance provider and moving company? An originator could make this transition easier for you if they came through with all of that.

Successful originators already surround themselves with third-party service providers tied to the homebuying process. They refer their clients to partners who help make the experience of finding a home, securing financing and transitioning to a new environment much easier and more pleasant than it could otherwise be. There is, however, much more to referring clients to third-party service providers than amassing a list through your favorite search engine.

Just like every loan originator is of a different caliber, other service providers vary in terms of their specialties, levels of expertise and competencies. Real estate professionals, title companies, closing attorneys, accountants, insurance professionals and other referral partners should be vetted thoroughly before you recommend them to your clients.

Scrutinizing partners

Imagine you’re being pursued by a local title company that is desperate for referrals to your borrowers. You agree to meet and offer them the opportunity to convince you why you should partner with them.

Instead of meeting at your office, you insist on meeting on your terms, at their office, at a time convenient for you. When you arrive, their office is disorganized, dirty and cluttered, and their professionalism is subpar on many levels.

Had you simply referred a borrower to them prior to conducting this due diligence, your professional credibility could have sustained some real damage. In your clients’ eyes, your recommended referral partners are an extension of yourself. Always remember this.

When developing your professional referral portfolio, be certain to interview your prospective partners from a borrower’s perspective. Here are some things to consider:

  • Their level of professionalism
  • The appearance and comfort of their office
  • Availability, punctuality and accommodation of unique schedules
  • The depth of their product offerings and their level of execution
  • A variety of channels to communicate and interact with customers
  • Safeguards for the borrower’s personal information (ask for proof)
  • Evidence that they’re properly bonded, insured and licensed

If you ultimately decide to engage with them, be sure to note when their insurance policies and licenses expire, and request to see copies of their renewal certificates. These considerations can make the difference between providing a wonderful experience and damaging your professional reputation beyond repair.

●●●

By becoming your client’s one-stop shop, you will surpass the levels of service provided by much of your competition. You will establish your professional reputation far beyond that of the average mortgage originator, giving clients more reasons to refer and come back to you. ●

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More Than a Passing Fad https://www.scotsmanguide.com/commercial/more-than-a-passing-fad/ Wed, 01 Nov 2023 08:00:00 +0000 https://www.scotsmanguide.com/?p=64547 What is the potential for artificial intelligence in commercial mortgage deals?

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Artificial intelligence is all the rage these days. From ChatGPT to task automation, AI innovations have been met with both excitement from those optimistic about their applications and hesitance from those worried it could replace many employees.

One thing is certain: AI is here to stay — and in a big way. Commercial mortgage originators wondering how they can implement artificial intelligence into their operations have numerous opportunities to embrace these powerful tools. The main reason why AI technology is becoming so prevalent across industries is its ability to process data while making connections more quickly and efficiently.

While the applications of such technology are obvious in more technical industries, some may not realize how this improved data processing could have tremendous impacts for commercial mortgage companies. From research and discovery to marketing and valuable lead generation, virtually every stage of the originator’s job (except for the deal itself) can be streamlined and improved using AI technology.

Efficiency tool

Experts in developing and using AI are commanding seven-figure salaries, with major companies such as Netflix offering salaries of up to $900,000 for an AI product manager. Even traditionally “human” jobs are being transformed by AI’s expanding capabilities in the use of natural language processing (NLP).

Still, it’s important to note that these efforts do not necessarily mean replacing people. In fact, AI itself is playing a role in providing personalized training in India. It also supports reskilling and upskilling of some workers who are learning how to incorporate AI into their workflows to increase output.

Those who embrace this new paradigm can remain ahead of the pack, while those who fail to recognize its potential could struggle to hold their own against competitors who do. This is particularly true in commercial real estate finance and other client-facing roles.

When it comes to the commercial mortgage sector, there’s one main way that artificial intelligence is being implemented — as a tool for employee productivity and efficiency. While these applications are occasionally client-facing, some of the most exciting AI-powered features are those used for administrative tasks.

One interesting use of AI is in the loan underwriting process. The technology can prefill and analyze application forms, saving the originator time and resources. AI can also look for anomalies and alert the originator to any problems.

Because of the improved data processing capabilities of AI compared to humans, such a program can help brokers close more quickly and successfully. Even more exciting is that these programs can reveal the lending opportunities that an originator may have otherwise overlooked or not had access to.

Industrywide impact

Predictive insights are another area in which artificial intelligence could prove particularly useful. Using AI technology, originators can accurately and efficiently comb through large datasets, allowing them to provide the most curated and customized opportunities for their clients. When purchasing commercial real estate, fit is paramount, and these in-depth analytics ensure that originators can provide the best service possible to their clients.

Like many other industries, AI is also being used by commercial mortgage professionals to automate some of the more monotonous tasks of their jobs, such as office work. Leveraging AI and NLP, loan originators can use this technology as knowledge agents or researchers to help them with the earlier stages of finding or marketing opportunities. They can also automate tasks such as customer service and lead generation. By using artificial intelligence in this way, originators can focus more of their time on what they do best: closing deals.

This technology is not just for filling out forms either. Many believe AI will revolutionize commercial real estate by integrating the technology into every facet of the industry, including interactions with customers, predictive analytics and automated property management systems.

The transaction experience could be improved significantly due to the proliferation of AI-powered tools, such as chatbots like ChatGPT. By setting up chatbots for prospective clients to interact with, mortgage brokers can create a 24/7 resource that offers clients the basic information and answers they may be looking for. These tools can also collect client information for the originator to use in the future.

Human element

As is the case in virtually every industry, the human element will have to remain involved. A big part of what makes for successful commercial real estate deals is an originator’s ability to form connections and relationships with their clients, and AI is unable to replicate this human factor. AI is also ineffective at accurately timing the life of a deal, which is where brokers bring their edge through intuition and experience.

Thus, it’s best for originators to look at AI as a supplemental tool they can use to make their jobs easier and more efficient, rather than as a replacement for their profession. By implementing these tools into their daily operations, commercial mortgage originators can waste less time on paperwork, empowering them to spend more time focusing on their strategies, negotiations and client relationships.

It will also be interesting to see how artificial intelligence can improve the experiences of people purchasing commercial real estate as the market heads into more uncertain economic times. With higher interest rates and lower demand in some real estate sectors, originators can use these powerful AI tools to ensure the best possible opportunities for their clients. In this way, originators can remain a few steps ahead of their competition and the market at large.

More commercial real estate transactions bring value not only to the broker and borrower but also to surrounding businesses. For example, if an office building is occupied, local restaurants will benefit through increased customer traffic from these workers. Beyond the commercial real estate industry itself, the use of AI could have profound implications for the broader economy. Enterprise AI systems could enhance employee efficiency and happiness, leading to better retention and overall output.

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Like other businesses, it’s critical for commercial mortgage companies to understand the edge that artificial intelligence will give them over their competition. They should begin investing time and energy to improve their current workflows. In doing so, loan originators will not only improve their own experiences but those of their clients too. This could benefit many others given the important role that commercial real estate plays in the broader economy. ●

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Q&A: Beth Robertson, Keynova Group https://www.scotsmanguide.com/residential/qa-beth-robertson-keynova-group/ Sun, 01 Oct 2023 08:00:00 +0000 https://www.scotsmanguide.com/?p=64141 Key digital trends emerge in financial services survey

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More home equity offerings, more Spanish language outreach and more financial goal-setting tools. That’s what the Keynova Group found in its 2023 Mortgage-Home Equity Scorecard, which assessed the digital channels of some of the nation’s largest banks and nonbanks.

Keynova Group has been doing a survey on mortgages and home equity since 2005. Initially, the company focused on banks but expanded to nonbanks about five years ago after Rocket Mortgage, then Quicken Loans, began offering the first end-to-end online mortgage.

“We’ll see a continuing build-out of educational resources like articles and calculators.”

“Our bank customers were really curious about what they were doing,” said Beth Robertson, Keynova’s managing director. “So, we decided to add several of the large nonbank firms to the benchmark.”

In the 2023 survey, Keynova evaluated 350 criteria, from the mortgage application process to customer support features. Surveyed institutions included Bank of America, Chase, Citi, Citizens, PNC, Truist, U.S. Bank and Wells Fargo, as well as nonbank home lenders Freedom Mortgage, Guaranteed Rate, LoanDepot and Rocket Mortgage. Robertson spoke to Scotsman Guide about industry trends uncovered this year and how financial institutions could use this information.

Nonbanks are increasingly looking at home equity lending to replace refinance and purchase originations, right?

Since last year, Guaranteed Rate, LoanDepot and Rocket have all introduced or ramped up their capabilities relative to home equity. You can see that with Guaranteed Rate and LoanDepot. Rocket, at least at the time of our review, still was doing a lot in terms of educational content.

More lenders are also offering Spanish-language mortgage applications. Is that new?

That is something, again, that we’re seeing mostly from the nonbanks. Again, the same ones that I mentioned, Guaranteed Rate, LoanDepot and Rocket Mortgage. It’s something that’s good to see. It’s definitely going to make mortgages much more accessible to Spanish-speaking individuals.

Do you think that companies are just now realizing the size of that particular market?

Many of the firms — not just mortgage lenders but other digital firms — were talking a couple of years ago about browsers having the ability to translate from English to Spanish. They didn’t see the need, necessarily, for adding Spanish-language content.

That’s really changed as the (Hispanic and Latino) population has expanded significantly. When you get to something like a mortgage application, the information that is gathered is very important and it’s highly confidential. It’s important that it be translated correctly.

Why did more lenders offer digital goal-setting and planning tools?

Banks and nonbanks are trying to act as more of a partner with the individual and help them plan for all of their financial servicing needs. All of that has resulted in us seeing more of these goal-setting tools.

Did anything in this year’s survey surprise you?

There is starting to be more use of soft credit pulls. I think we’ll continue to see that early in the mortgage processes. You may see a soft credit pull, rather than anything that affects the borrower’s credit score, until they’re ready to go with something that’s more formal.

Do companies, both the ones surveyed as well as others, adjust their strategies based on the survey findings?

It’s important to see what others are doing. It doesn’t necessarily mean that you’re going to adjust your own strategy. You can look at what others are doing and maybe use it to justify internally your own initiatives, or to help you plan new initiatives.

Any expectations for what you’ll find in the future?

That’s somewhat harder to say, but I do think we’re going to see a lot more Spanish capabilities in terms of the lending content and educational resources. We’ll also see more Spanish language in customer support tools like virtual assistance, as well as dedicated Spanish dial-in lines.

We’ll also see some more rollout of soft credit pulls, because that encourages somebody to find out if they’re eligible without affecting their credit rating. We’ll see a continuing build-out of educational resources like articles and calculators, and other sorts of tools that can be integrated more broadly across a digital property.

Do you think that nonbanks looking at home equity lending is a blip on the map?

Once they’ve gone through the product rollout and the support that they need for home equity, the nonbanks will likely stay there. Then they can offer a wider array of products to meet customer needs depending on the current market situation. ●

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Author Showcase: Rob Chrane, Down Payment Resource https://www.scotsmanguide.com/podcasts/author-showcase-rob-chrane-down-payment-resource/ Mon, 12 Jun 2023 23:47:18 +0000 https://www.scotsmanguide.com/?p=61915 Carl White interviews Rob Chrane of Down Payment Resource about his article, "Clear Up the Confusion on These Offerings," in the June 2023 issue of Scotsman Guide Residential Edition.

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In Episode 003 of the Scotsman Guide Author Showcase, Carl White interviews Rob Chrane of Down Payment Resource about his article, “Clear Up the Confusion on These Offerings,” in the June 2023 issue of Scotsman Guide Residential Edition.

Rob Chrane is founder and CEO of Down Payment Resource and is a leader in the homeownership affordability space. A 30-year housing industry veteran, Chrane launched a comprehensive database of U.S. homebuyer assistance programs and develops tools that enable lenders, borrowers and real estate professionals to connect homebuyers with affordability programs.

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Confidently Close These Complex Deals https://www.scotsmanguide.com/commercial/confidently-close-these-complex-deals/ Sat, 01 Apr 2023 08:00:00 +0000 https://www.scotsmanguide.com/?p=60219 Brokers need to know how to facilitate private business acquisitions

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The commercial real estate industry is facing economic challenges as the Federal Reserve raises interest rates to control stubbornly high inflation. The mood among real estate finance professionals is, at best, cautious optimism. To deal with this sense of uncertainty, mortgage brokers may want to look at expanding their menu of loan services.

Commercial mortgage brokers are expected to have the experience, skill and knowledge to assist in arranging almost any type of business-purpose funding requested by a potential client, including financing the sale of a privately held business. A privately held business is a company that is not publicly traded, which means that the company did not raise capital through the sale of stock via public offering. Privately owned companies include family-owned businesses, sole proprietorships and many other firms of all sizes.

It is essential to remember that most businesses have some level of investment in real estate either through leasehold or fee-simple agreements. The degree of real estate holdings will have a major impact on a company’s valuation and subsequent loan requirements.

“The idea of owning a small business is a common dream for many people with entrepreneurial spirit. But there are many financial issues associated with the acquisition of an existing business.”

Small-business market

One potentially attractive area for mortgage brokers to explore is change-of-ownership loans to small businesses. There are approximately 32.5 million small businesses in the U.S., which represent more than 99% of the nation’s businesses, according to the U.S. Small Business Administration.

The idea of owning a small business is a common dream for many people with entrepreneurial spirit. But there are many financial issues associated with the acquisition of an existing business. Commercial mortgage brokers interested in expanding into these types of transactions should start by developing relationships with business brokers or merger-and-acquisition intermediaries.

These connections will help generate a regular source of new lending opportunities. In many cases, the business owner will require the professional services of a business broker in preparing the business for sale, determining a realistic sales price, marketing the sale and negotiating with potential buyers.

In addition, sales will often require lender financing. This is where the commercial mortgage broker enters the picture. They can place the loan with a lender that understands the intricacies of change-of-ownership deals and has the appetite to fund these types of transactions.

Due diligence

To begin the acquisition process, the prospective buyer and the mortgage broker must conduct due diligence. This includes inquiries as to what services or products the subject business offers, how long the company has been operating and its reputation in the local business community.

A thorough review of the company’s financial statements is necessary to confirm its ability to meet future obligations, including debt service. In addition, the lender must evaluate the probability of maintaining and expanding the level of future earnings, which is the primary source of repayment.

Other areas to investigate include supply chain and staffing issues. For example, a manufacturing firm could be dependent on a specific type of synthetic ingredient that may not always be available. Alternatively, what if it became necessary to transport the synthetic product from a source hundreds of miles away? The potential cost increases would decrease future profits.

Labor is also a foremost area of concern. Are workers voting to unionize in the immediate future? Are key employees willing to stay on with the new owners? These issues affect the sales price and the size of the loan.

Understand goodwill

Corporate financial statements are crucial elements to helping the parties arrive at a logical sales price. The commercial mortgage broker should realize that the final price may account for items known as “blue sky” or “goodwill.” These terms encompass the business’s reputation, its brand recognition, customer and supplier lists, and other factors. The value of goodwill can be calculated, but it doesn’t have collateral value.

Brokers must pay attention to customer relationships. What is the company’s reputation with its existing and potential customers? Is the principal customer related to the present owner? If customer problems exist, posting an “under new management” sign will be inadequate.

Equally important is what creditors (trade suppliers, current bank, etc.) think of the company and its future. The big question here is whether they will continue to extend credit in the future. Again, these issues will affect the sales price and the loan amount.

Seek professional help

When purchasing a company, a buyer may acquire either its assets (consisting of the receivables, inventories, equipment and real estate) or corporate stock. The mortgage broker should thoroughly understand these issues because the method used will likely affect the buyer’s and seller’s tax liability, and thus may impact the purchase price.

The tax implications of buying or selling a business are extremely technical and constantly changing. It is advisable that all parties involved secure professional tax counsel.

If the buyer decides to purchase the assets of a company, both parties may wish to secure legal counsel, which will draft a sales contract that identifies the specific assets being sold and the amount paid for each item. This agreement will provide a foundation for depreciation and potentially the total tax liability. These details also impact the sales price and loan amount.

Additionally, legal counsel may be able to help the buyer avoid any potentially unknown liabilities of the business, including latent legal actions. Finally, the buyer may choose to enter into a noncompete agreement with the seller, in which the buyer pays the seller an additional dollar amount to not open a similar business in the respective trade area.

Drivers of value

Mortgage brokers should keep a wide variety of factors in mind when analyzing the drivers of a property’s value. These include the business location, its historical growth and profitability, the current owner’s reason for selling, the quality of their financial statements, the projected future profitability, the existing client base, any barriers to entry and any regulatory burden. Other factors include competition, the future of the subject industry and the future of the company’s products. Also look at the company’s technology tools and any possible environmental concerns.

Once due diligence and negotiations are complete, and the sale price is determined, the next step for the broker and buyer is to develop a plan to finance the transaction. The following list describes just some of the documentation that brokers will need to adequately prepare the loan request package:

  • A detailed description of the subject business
  • A signed copy of the sales agreement
  • A detailed list of assets that will serve as loan collateral, including estimates of each item’s current value
  • A copy of the real estate purchase contract, if real property is involved
  • The complete business plan that states the company’s objective and how its goals will be accomplished
  • The entity’s balance sheets and income statements for the past three years
  • The amount of equity the new owner intends to invest in the business

Amenable terms

During the application process, the lender will evaluate and determine the collateral value of the assets involved in the acquisition, which offer security for the loan. In some cases, the aggregate value of the collateral may be less than the requested loan amount.

This does not mean the deal will be turned down. There are several alternatives to be considered, including having the lender make a loan with less than 100% collateral, or having the borrower offer additional collateral, such as a second lien on their home.

Alternatively, the lender may suggest the seller take a carryback on a portion of the sales price and accept a second-lien position behind the lender. If cash flow is an issue, the seller may be willing to defer some or all their payment until such time that the company can support the additional debt.

Repayment terms are issues that must meet everyone’s needs. Again, depending on the lending institution’s policies and liquidity needs, the terms generally can and should be structured to meet the borrower’s cash flow needs as well as the economic life of the collateral.

Seven to 10 years may be a reasonable timeline for equipment financing, while shorter terms are common if working capital is part of the loan proceeds. If commercial real estate is the primary collateral, 20 to 25 years is common. If all types of collateral are included, as is frequently the case, a blended term may be appropriate.

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Commercial mortgage brokers should remember that change-of-ownership financing may not be easy for the buyer to obtain. Therefore, the broker should emphasize the opportunity to cross-sell many other services. This will help to establish a long-lasting, profitable and mutually beneficial relationship with a new entrepreneur, the engineer of the train that runs the economy. ●

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The Power of Change https://www.scotsmanguide.com/commercial/the-power-of-change/ Sat, 01 Apr 2023 08:00:00 +0000 https://www.scotsmanguide.com/?p=60268 Explore holistic solutions that serve clients in a difficult marketplace

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In the dynamic world of commercial real estate, businesses often find they need diverse perspectives and counsel to help them navigate their strategies. And commercial mortgage brokers are uniquely positioned to provide perspective and counsel. Whether working directly with landlords or tenants, brokers can offer advice on ways to maximize the use of space and help clients achieve their business objectives.

The advisory role that mortgage brokers can play includes acting as a sounding board, listening to a client’s concerns and offering critical advice. Being close to their clients will help brokers facilitate successful deals while also developing long-lasting business relationships.

This role is particularly important to clients who are undergoing major changes. One aspect of the mortgage broker advisory role is help with change management. When done well, the added value that change management brings can help to close deals faster while building a deeper, more diverse referral network.

Change management is the art and science of leading an organization through substantial transformation. It is a structural process for planning and implementing new ways of operating within an organization. It requires boldness in the face of inevitable resistance as well as clear, measurable goals that are rooted in articulate and thoughtful answers to one question: Why change?

Embracing change

When the question of change doesn’t have a good answer for the people whom change affects, the subsequent lack of buy-in inevitably leads to failure. To avoid such problems, change management strategies must address several key aspects.

First, it is important to define the driving purpose so that everyone can understand why a company is making a change. Address the human side of change, which takes into account the impact on employees. And acknowledge that change cannot happen with a snap of the fingers or a hope that everything will be OK. Next, work through the change process by engaging everyone involved in the change. Allow voices to be heard and concerns to be addressed. Encourage continuing participation in the process by facilitating the journey and keeping people from resorting to old habits.

A mortgage broker’s role in change management starts by helping a client solve a space issue, which can solve a business issue. It’s about taking them from a statement such as “my lease is running out and I need new space” to helping them define their space requirements. They should be making smart business decisions via solutions that are aligned with the direction their business is going.

For example, when tenants say they need more space, a mortgage broker thinking about change management will start by asking about what they’re looking to get out of the space. This immediately transforms the conversation from a transaction to a strategic collaboration. Change management helps to clarify the client’s needs and the impact these needs will have on their business and their employees.

Companies that specialize in commercial real estate change management are regularly tapped to collaborate with mortgage brokers and help clients navigate this change curve. Increasingly, these specialists find that mortgage brokers who embrace change management strategies have faster closing rates.

Brokers should think beyond the footprint of a property to its impact on the business. This creates opportunities to deliver smarter real estate solutions, which in turn will lead to successful transactions, happier clients and lasting business relationships.

Time is money

It may feel like more time is needed at the beginning of the process to consider these factors. But that isn’t the case. When done well, adding a change management perspective to the real estate transaction process helps to close deals more efficiently.

Several years ago, for example, an international security company needed help to select new offices at 200 locations across the U.S. This had to be done in less than six months. They contacted a project management consulting company that specialized in change management.

The security company wanted to look at virtually every property on the market. But the consulting firm helped to define what the space needs were and how to target the client’s approach by narrowing down the search. The consultant succeeded in doing this by using an essential change management checklist, composed of a series of questions that included the following:

  • Do the locations meet the requirements of the company?
  • Is there enough parking to meet needs?
  • Are the locations accessible to all employees and clients?
  • Should they be located near public transportation options?
  • Is the site compliant with the standards of the Americans with Disabilities Act?
  • Are there any special needs or requests for the facility?

The answers to these and other questions allowed the firm and their mortgage broker to explore potential real estate options with precision and purpose in relation to physical parameters, such as access for emergency vehicles and proximity to customers. The sites were also weighed with other incentives, such as financial or tax benefits of certain municipal zones.

Creating buy-in

Once the consultants narrowed down the options, they worked with the client and their program management team to get employee input so that everyone in the security company felt heard. This approach narrowed down the search to a manageable level while helping the client communicate the reason for change to its employees.

Management’s explanation went beyond “our lease is up” to showing the benefits that change would have upon the employees. As a result, buy-in was easier to obtain, impact to productivity was minimized, and the move was more seamless and less stressful.

Instead of wasting everyone’s time looking at countless properties that met some arbitrary square-footage requirement, the consultant was able to present a handful of exacting possibilities that led to a faster close and a happier client. Furthermore, the lasting impression of the entire experience led the client to remember the benefits of working with a mortgage broker who took into consideration the full impact of the company’s move. At the end of the process, not only did the transaction itself close more quickly, but after the deal was completed, the client regularly referred other prospects to the broker.

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Change doesn’t happen to an organization; it happens within an organization. Truly meaningful change needs to be spurred by a deep understanding of the problems that the change intends to fix, the opportunities the change intends to create and what success after the change will look like.

The COVID-19 pandemic resulted in tremendous change that the business world and commercial real estate stakeholders are experiencing to this day. Too many businesses have yet to acknowledge the level of change their employees have experienced and that they are essentially trying to fit square pegs into round holes. They are attempting to put today’s people, priorities and business realities into an office space that was designed for a different time.

A common example of this is the current discussion around hybrid work, a flexible model that supports a blend of in-office, remote and on-the-go working environments. But companies often make the mistake of thinking that the concept of hybrid work means the same thing for everyone when it may not.

Instead, companies need to use change management to help address this new reality. They should develop solutions for the contemporary demands of flexible working conditions. Mortgage brokers are on the front lines of helping businesses navigate this ever-changing world. When they bring a strategic change management perspective to the negotiating table, everybody wins. ●

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Convenience in the Palm of Your Hand https://www.scotsmanguide.com/residential/convenience-in-the-palm-of-your-hand/ Tue, 01 Nov 2022 08:00:00 +0000 https://www.scotsmanguide.com/uncategorized/convenience-in-the-palm-of-your-hand/ Mortgage professionals need a mobile-first payments strategy

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The real estate market has been red-hot the past few years. But with an ongoing inventory shortage, soaring prices and higher interest rates, buyers are being squeezed on all sides — a combination that has led to a slowdown in new purchase and refinance originations.

This potential for fewer new loans means that mortgage originators and servicers must get the most out of their existing portfolios. It’s important for existing borrowers to have a good experience with both parties, since a happy borrower drives future purchase and refinance business for originators and servicers alike. Likewise, ensuring on-time payments can help originators qualify borrowers for these future loan scenarios.

Mobile payments are the final step in creating a modern, seamless mortgage servicing process.

A mobile-first payments strategy that connects with today’s digital-minded homebuyers can help by reducing delinquent payments while improving operational efficiency and straight-through processing. Here’s why this is a smart solution for today’s volatile market and beyond.

The digital revolution

More than ever, consumers conduct their lives from their cell phones. A Pew Research study found that 85% of Americans now own a smartphone, while 53% own a tablet, up considerably from shares of 35% and 10% a decade ago. Smartphone adoption is even higher (95%) among ages 49 and younger, and according to the National Association of Realtors, this is the demographic most likely to be financing their home purchase.
One way consumers seek to use smartphones to make their lives easier is through mobile bill payment. A 2021 PayNearMe study of more than 2,600 U.S. adults found that 69% would rather use digital-payment channels to pay their bills instead of paying by mail, phone or in person.
Of these channels, mobile apps proved most popular (75%), although 37% said they would be “likely” or “very likely” to pay using their digital wallet whenever possible. Among the youngest potential homebuyers (18- to 29-year-olds), 45% said it would be easier to pay using their Apple or Google digital wallets, 39% wanted mobile options like Venmo and PayPal, and 38% said they wanted the option to use different payment types from month to month.
Tech-savvy homebuyers want the convenience of mobile payments throughout the life of their mortgage. Loan servicers can meet this demand by connecting buyers with mobile-payment options for all mortgage-related payment scenarios. Already, nearly every component of loan origination has gone digital, from prequalification and application to underwriting and credit decisionmaking, so mobile payments are the final step in creating a modern, seamless mortgage servicing process.

Mobile-payment benefits

For mortgage companies, this is a clear win-win: They gain another compelling selling point to attract new clients while homebuyers get the mobile-payment options they desire. But these aren’t the only upsides.
In the PayNearMe study, three in 10 respondents (regardless of age) indicated that mobile-payment options would help them pay their bills on time. For mortgage servicers, offering these choices to clients can remove payment obstacles and increase on-time payments.
More than half of adult consumers (53%) give themselves a grade of C or lower in handling bill-payment management details, such as knowing when bills are due, according to the study. Entering credit card or payment information, and remembering logins, passwords and account numbers, are the other most commonly cited reasons for why online bill payments are difficult.
Offering other mobile channels and payment types to remit mortgage payments can help address these difficulties. For instance, a payments platform provider can work with a servicer to enable Apple and Google wallets as mobile-payment channels, which allow clients to store their mortgage bill right in their digital wallet and pay from their smartphone.
The account can be updated regularly with information such as the amount due, the payment deadline and remaining balance. Consumers can enable push notifications to allow engagement communications from the servicer, such as billing reminders. Lenders or servicers also can schedule mortgage payment reminders by text or email, even embedding unique links to take clients right into the payment flow — no password or account numbers necessary. When bill payment is convenient and easy, consumers are more likely to pay on time.

Encouraging self-service

Giving consumers the ability to make mobile payments boosts self-service and can reduce the number of customer service calls. People who use mobile-payment channels go right from their smartphone to their payment screen and complete the transaction in only a few clicks. And with the right payments platform, consumers can take advantage of “set it and forget it” automatic payment options that make their lives easier.
What about customers who are receiving paper statements? Loan servicers can still promote self-service payment options by adding a QR code to every statement. This allows borrowers to scan the code with their smartphone and be directed right into their payment flow. They can pay immediately with a few simple clicks.
For those who are accustomed to calling their servicer to pay by phone, customer service representatives can help change this behavior by sending a text or email with a link that will allow a one-time payment or the authentication of an agreed-upon autopay schedule. The agent can stay on the line to help guide the consumer through either option.
Offering this on-ramp to self-service mobile payments eventually takes pressure off customer service staff and allows them to spend their time addressing more complicated issues. They won’t have to complete phone-payment transactions or help clients remember basic billing information such as payment due dates and amounts due.
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As low housing inventory, soaring prices and rising interest rates put the squeeze on homebuyers, it’s important to reduce delinquent payments by making the mobile-payments process easy and frictionless. Loan servicers and originators benefit when borrowers pay successfully, on time and as independently as possible — and this benefits borrowers as well.
Choosing an experienced, modern payments platform provider is the first step in the process. The provider can help servicers build a mobile-equipped payments funnel so they can improve convenience and ease of payment, increase on-time payments, lower operating costs and build client satisfaction in the process. ●

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Self-Care in the Form of CRMs https://www.scotsmanguide.com/residential/selfcare-in-the-form-of-crms/ Tue, 01 Nov 2022 08:00:00 +0000 https://www.scotsmanguide.com/uncategorized/selfcare-in-the-form-of-crms/ Choose customer relationship management that aligns with your business goals

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Technology has both benefits and drawbacks. Usually, we claim we want technology to stop consuming our lives, yet there are times and places where it is necessary for success — like in business.

For mortgage originators, technology has many benefits: digitization of applications and documents, automated underwriting, income verification and so much more. But no originator’s digital tool belt is complete without a customer relationship management (CRM) system.
The technology known as CRM enables mortgage companies to establish and maintain relationships with clients. It tracks interactions between the organization and the client, which is helpful when a business grows and take on more clients. Not all CRMs are equal, however, and many are geared for specific industries, so business owners must choose wisely.

Mortgage-specific CRMs

Mortgage professionals can develop client trust by using CRMs designed specifically for the mortgage industry. Mortgage CRMs assist lenders and brokers with a wide range of duties that support the sales process, including closing tasks, automated marketing procedures, streamlined client communications and maintaining connections with leads.

A strong CRM designed specifically for the mortgage sector should be able to store data, seamlessly integrate with other programs and, most importantly, sustain positive client relationships.

A mortgage company can find value from this technology, but so can individual brokers and loan officers. Since a CRM’s automation frees up your day to meet with potential and current clients, it is especially helpful for independent originators.
A strong CRM designed specifically for the mortgage sector should be able to store data, seamlessly integrate with other programs and, most importantly, sustain positive client relationships. Mortgage CRMs can remind you to follow up, track your interactions with clients, send automated and customized emails, and more. An efficient streamlining of these fundamental services can make or break a client relationship.
Keeping track of important documents is a major part of a broker’s responsibilities. Using a CRM reduces confusion and stress while sending documents to your various clients. CRMs aid your pipeline by providing automation features. Brokers and loan officers can spend more time developing relationships when a procedure is automated.

Types of CRMs

Understanding the three different types of CRMs — collaborative, operational and analytical — is crucial before taking the plunge on a specific software brand.
Collaborative CRMs focus on making sure each department in an organization connects. Marketing, sales, client support and other departments can access the same data, ensuring that no employee is left in the dark. With a collaborative CRM, any employee is able to help a client who calls in with a question about their loan.
An operational CRM places more of an emphasis on the entire borrower journey, from the moment a prospect visits your website to the moment their loan is closed. This CRM type typically offers better automation features, opening up more time in your schedule for personal or creative matters.
An analytical CRM does exactly what its name implies: it analyzes client data and assists you in using it. The capabilities included with this CRM type make it easier for you to identify the successful areas of your pipeline and where you can make any adjustments.
You might be wondering if there is a single CRM platform that can offer most, if not all, of these features without breaking the bank. It depends on the organization’s willingness to adopt and learn new technology, as many comprehensive platforms come with complicated deployment procedures and a learning curve.

Major players

Collaborative, operational and analytical functions, as well as many others, are offered by two of the most popular CRMs, Salesforce and Microsoft Dynamics 365. They can be quite expensive depending on the add-ons you choose to buy. But investing in this cutting-edge technology might be one of smartest choices your company ever makes.
Salesforce is one of the first companies that comes to mind when a CRM is mentioned — and for good reason. It offers tools for all mortgage companies, regardless of size, to flourish while maintaining client interactions and optimizing the sales process. It offers a wide range of customization options, allowing business owners to tailor it for any industry. Salesforce excels at integrating its processes with third-party applications and software.
The pricing for Salesforce is as follows. First, the Essentials package (which includes features like account, contact, lead and opportunity management, as well as seamless connectivity with Gmail and Outlook) costs $25 a month per user. The next level, Professional (which includes the same features as Essentials but improves on pipeline management) costs $75 a month per user. The third tier, Enterprise, which incorporates workflow and approval automation, costs $150 per user, per month. Last but not least is the final tier, Unlimited. It adds sales interaction and intelligence along with a 24/7 support team for $300 per user, per month.
Like Salesforce, Microsoft Dynamics 365 offers features that are useful for businesses of any size and in any industry. Salesforce (hence the name) places a strong emphasis on the sales side of the organization, but Microsoft Dynamics has greatly expanded to handle nearly all facets of corporate management. With so many capabilities, Dynamics also comes with a steep learning curve. Even though it costs more, it is undoubtedly designed for companies that want to improve across the board.
Dynamics will always be pricier than other CRM choices. Sales and Service are the two main product packages they offer. There are three levels under the Sales umbrella: Professional, Enterprise and Premium, at $65, $95 and $135 per user, per month. Sales Professional offers Microsoft 365 and sales automation. Sales Enterprise adds industry-leading contextual insights and customization possibilities. And Sales Premium adds prebuilt, configurable AI solutions made for business managers.
The Dynamics 365 Service packages focus heavily on maintaining client relationships. There are two tiers: Customer Service Professional and Customer Service Enterprise. Features such as cross-platform chat and multiple marketing tools are available with Professional, which costs $50 a month per user. For $95 per user, per month, Enterprise adds extra client-service features and more sophisticated versions of the tools found in the Professional package.

Other options

If you want something more straightforward and less expensive, choosing a CRM that is more oriented toward mortgage originators will be most advantageous. Contactually, a well-known CRM designed for the real estate sector, formally closed its doors earlier this year. Many mortgage companies have looked for alternative CRMs as a result of this shutdown. Zendesk and Pipedrive are two options that work well for brokers and loan officers.
Zendesk starts at $49 per user, per month. It provides sales automations that are primarily targeted to small and medium-sized businesses with business-to-business and business-to-client needs, making it a viable contender for an organization that is unfamiliar with CRMs. It has robust sales pipeline features that boost lead conversion and sales efficiency. One unique feature of Zendesk is its mobile phone application, with built-in CRM capabilities that are convenient for busy days away from your desktop computer.
Another strong option for originators is Pipedrive. With prices starting at $14.90 per user, per month, this CRM platform focuses primarily on the client. The client portal offers real-time updates with completely customized dashboards and pipelines, and it effortlessly integrates with hundreds of well-known financial apps. Many users remark on how simple the site is to use, which is great for organizations that are too busy to sit down and learn something from scratch. The absence of text messaging, which other CRMs offer, is the only obvious drawback.
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Implementing a CRM system or switching to a new one can be worth the pain of setup. Take, for example, a private mortgage lender that recently switched from Contactually to Microsoft Dynamics 365. The lender worked with a partner of Microsoft to help implement and configure the processes that function behind the scenes. For instance, when someone submits a loan scenario through the portal, information about the broker and the borrower is automatically entered in the CRM.
The marketing application was an additional cost, but through drip email campaigns and preplanned social media posts, this add-on keeps the lender at the top of clients’ minds. Although there is a steep learning curve, using technology rather than hiring more employees turned out to be a cost-effective and time-saving strategy. ●

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Kenny Cheung, Homebridge Financial Services Inc. https://www.scotsmanguide.com/residential/kenny-cheung-homebridge-financial-services-inc/ Sat, 01 Oct 2022 08:00:00 +0000 https://www.scotsmanguide.com/uncategorized/kenny-cheung-homebridge-financial-services-inc/ No. 27 Top Purchase Volume, No. 35 Top Dollar Volume

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New York City is a hypercompetitive market to originate mortgages in, but Kenny Cheung hasn’t let that stop him. His subtle, old-school approach to the business netted him $439 million in closed loans in 2021 and the No. 35 spot in Scotsman Guide’s 2022 Top Dollar Volume rankings.

“New York is a hub where a lot of clients like to invest, both to live in as well as for their investment purchases,” Cheung said in a recent conversation with Scotsman Guide. “But of course, the challenge is that there’s a lot of competition. We work out of the five boroughs, and on every other corner there’s another lender who’s always going to be in competition, always trying to grab market share.”
Cheung said he’s spent the past two decades organically building up a diverse client base, mostly through word-of-mouth referrals, and has preferred to grow gradually and sustainably. This meant a heavy focus on the purchase loan market, which makes up about 65% of Cheung’s business.
“We don’t try to go after the refis,” Cheung said. “Refi clients come to us because we have previously helped them or they’re in the process of cashing out to do other investment purchases. But our main drive is really purchase focused. So, in 2020, we didn’t capitalize on refis as much as some of our competition did, but we also didn’t get impacted as heavily (when refinances dried up).”
He said that there’s a unique cycle for homebuyers in the Big Apple as many will move from the five boroughs to the suburbs to raise their kids. When the kids are grown, they’ll often move back to the city to be closer to everything — work, shopping, retirement homes and medical care.

If a client runs into a problem, I really want to solve it within the hour. We don’t want to let the problem sit and marinate.

“I’ve been in the business long enough where I have actually helped clients through that cycle, which was very rewarding,” Cheung said. “And of course, that’s just the first generation — the parents bought their home and now the kids are buying a home, and I’ve been fortunate enough to take on that role as well, to help the kids with their financing needs.”
His philosophy is to serve one client at a time and to provide them with high-quality service and lightning-fast responses. “Don’t procrastinate,” Cheung said. “If a client runs into a problem, I really want to solve it within the hour. We don’t want to let the problem sit and marinate.”
His brand is known not only by clients but also by the Realtors and attorneys on the other side of a deal. They know if they see his name on the paperwork, the financing will come through smoothly. Building that reputation took time and Cheung said that his two decades of experience gives him a major advantage in closing deals.
“We’re in a very diverse marketplace. … Every scenario you can think of, we’ve probably come across through the years,” he said. “That’s really our biggest advantage: Clients feel that their situation is a little unique, but when we look at it, it’s something we do every day anyway.”
Experience, branding and philosophy count for a lot, but Cheung stressed that the center of his business is all about client relationships and the service he provides. “At the end of the day, they’re looking for service,” he said. “Service, honesty and being available, working around the clock.” ●

Tips of the Trade

Service one client at a time and do the right thing. It’s OK to make a little less on a deal if it means you’re going to build that relationship. Don’t keep that mindset of trying to make as much as you can on every deal. Focus on value for the client. The relationships built along the way will last throughout your career.

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