Technology levels the playing field for brokers facing stiff competition

David Boone, first vice president, The Provident Bank

As published in Scotsman Guide's Residential Edition, May 2010.

By embracing automation solutions, mortgage brokers can take steps to realize new opportunities, grow revenues, create competitive distinction and expand business development. To seize the opportunities in today's lending environment, brokers must engage strategically in electronic-lending initiatives. These initiatives allow brokers to compete with competitors of all sizes.

One way brokers can begin their business development in this area is by embracing Internet technologies. When doing so, brokers don't need to give up traditional lending channels such as branch offices and call centers.

Brokers should, however, realize that Internet-savvy borrowers aren't satisfied with Web sites that ask them to fill out a form and wait until someone gets back to them. They want information immediately and also seek an easy-to-use application, competitive rates, personalized product recommendations, and detailed closing costs in a fast and secure environment.

When looking to engage in online lending, brokers also must drive business to their online channel. They can do so through Internet advertising, including pay-per-click ads.

Brokers also can establish and grow their online lending efforts with a comprehensive Web portal that provides multiple lending options such as mortgages, second mortgages, consumer loans and small-business loans. Brokers must strive to meet borrowers' needs and to provide advanced automation throughout origination.

With automation, brokers can deliver a streamlined application method that processes application fees, pulls credit and other information, and provides borrowers with instant decisions automatically. This workflow eliminates several steps and creates greater efficiency in origination.

By providing instant decisions, brokers can gain a competitive advantage and fulfill online borrowers' high expectations. This can increase pull-through rates substantially.

Online-lending solutions also can provide brokers with vital data about which products grab borrowers' attention most. This allows brokers to focus on products their target audience desires.

Brokers who use online origination also should see a sizable reduction in printing and mail costs. In addition, there is typically no charge for redraws. When mistakes occur, lenders can make the necessary changes with borrowers at the closing table.

Advanced automation solutions that are efficient, secure and easy to use enable brokers to identify business opportunities quickly and affordably. These solutions include online originations, e-disclosures, electronic document delivery and a host of other services.

Brokers who embrace lending automation can grow revenue and create competitive distinction in today's marketplace.

David Boone is first vice president of The Provident Bank, www.providentnj.com. Provident serves its customers via a network of more than 80 branches throughout northern and central New Jersey. It has been able to leverage technology through a strategic partnership with Data-Vision, which delivers a suite of comprehensive online services. Contact Boone at David.Boone@ProvidentNJ.com. Contact Data-Vision at (888) 925-8625 or www.d-vision.com.