Being a Mortgage Lender in 2016 has become a complicated and competitive environment where it is not only harder to acquire and keep new customers, but also to be able to adhere to the extensive list of rules and guidelines while doing so.
A Costly Scenario
Your mortgage company has received notification that the auditor will arrive in a few hours to start the regulatory compliance examination, and everyone in your organization goes into panic mode as they desperately try to find all the documentation that this person requires.
They start to realize that they have no way to track relevant documents, they don’t know what the originators have done, they see unapproved proposals based on discriminatory product selection, triggering terms and there are missing disclosures.
As the auditor walks through the door, they wonder if this will be the last day of business for them…
Many mortgage companies now understand that to protect their business from closure, their sales and marketing teams need a SaaS (Software as a Solution) structural framework that complies with the Consumer Financial Protection Bureau (CFPB) regulations and all of the American Institute of Certified Public Accountants (AICPA) Service Organization Control (SOC) standards as well.
As a company you have a difficult decision to make and most companies make the wrong one. They swing between two ends of the pendulum.
The First End
They make everything so restrictive that they make it impossible, for the sales and marketing team to do their jobs. Not only do they lose sales, but they will either lose valuable employees who will go to other companies who are less restrictive, have nonproductive employees or have employees go behind their back and do illegal things to keep commissions coming in. Either way not a good scenario.
The Second End
The company takes an “I don’t care” attitude when it comes to the rules and regulations and figures it will never be caught. They do not put the proper systems in place and don’t do the necessary steps to protect vital customer information.
Their sales and marketing team can do what they want when they want as along as it brings in the cash. This is a recipe for disaster because there is a good chance that you will be audited and examined. You do not want to take the chance that it won’t happen to your company.
The Middle Ground
How do productive, prosperous and safe companies deal with this issue? If you are a large lender, you have the resources to overhaul all your systems and create compliance departments to oversee everything.
But what if you are a small to mid-size company with limited resources? You still have to comply with the same rules and regulations.
The Best Solution?
According to Mortgage Compliance Magazine in a recent article (March 3, 2016) states that, ” Companies both large and small can start with a scale-able CRM that empowers lenders by applying and monitoring their compliance standards, while at the same time, creating an exceptional experience for originators, borrowers and synergy partners alike. Applying a CRM as an enterprise solution introduces total company value while allowing lenders of all sizes to aggressively compete in the mortgage marketplace without the need of significant investment or on-board downtime.”
Unify is a completely compliant, comprehensive contact management system for mortgage companies that provides integrated features and functions that are essential to increasing profitability and streamlining the sales process.
In truth, a CRM is probably one of the most valuable systems that any mortgage company can implement. It is as important as any member of your business, as it has a significant effect on customer acquisition, retention and engagement. A good CRM solution, when properly managed, can help individual loan originators become more efficient, which in turn results in higher productivity and opportunity for business growth.
The Best Scenario Possible
You have worked hard to combine the best of both worlds by having a CRM that is compliant and allows originators to create sales within the guidelines set out. You receive the call that the auditor will be there soon, and you calmly get yourself ready. When the auditor arrives, you can quickly give an orderly response supported by documentation and the auditor is impressed.
In the end, all the auditor can do is give you a few slight suggestions on how you can make things better and passes you with flying colors. As he/she walks out the door, everyone lets out a cheer and the celebrations begin.
It is possible with the right CRM. Schedule a personal demo with us today and let us show you how Unify is the perfect solution for your mortgage company.