Why the Best Loan Officers Are Micromanagers – And How We’re Fixing That
Jul 09, 2019
I know, I know. You wouldn’t think that the best performers in any profession would be micromanagers. But today, because of the way most mortgage lending systems are set up, Originators who want to close a lot of loans basically have to micromanage everyone else they work with – or their assistants have to do the micromanaging.
We’re working to change that. Here, I’ll explain how. But first, some background.
The Current State of Affairs for Loan Officers
Today, one of the most essential skills Originators must have is checking in.
Yes, Loan Officers are primarily salespeople. But if they want to close those sales, they have to check in with the person handling disclosure generation, the person handling e-signing, the person ordering the appraisal, the person handling processing. They have to work on approval conditions with the customer. And so on.
That means a lot of time on the phone, email, or hovering over a colleague’s desk, waiting for work to get done. After all, the regulation in this industry means things have to be done a certain way and in a certain order.
And because of the way most lenders’ back-end systems are currently set up, the completion of all those tasks requires a lot of hands in the pot – and a lot of waiting around.
Where We’re Going: Better Tools for Loan Officers
In an ideal world, an Originator would be at open houses, talking to prospective buyers, building relationships with real estate agents. When they found an interested buyer, they’d be able to pull out their phone and do all the things required to close a loan from their phone, while the customer watched.
In other words, by the time the buyer left the open house, the LO could have closed the sale, meaning they could have completely structured the deal.
If that sounds like a pipe dream, I’ve got good news: the technology to close loans in one sitting currently exists. We built it. Today, it’s possible for lenders to use Cloudvirga’s software with their existing LOS to streamline all the backend work that usually requires days of micromanagement and countless trips back to the office.
That means originators can spend more time developing relationships and less time micromanaging colleagues and partners.
Rethinking What’s Possible in Mortgage Tech
Our industry is in an interesting place right now. While many mortgage tech startups proclaim that they’re taking us toward the “digital mortgage,” most focus mainly on the front end – the consumer-facing side of the mortgage lending experience.
While this is an essential evolution, it’s not enough: once the borrower has finished their digital application, the Originator’s duties look almost identical to how they looked 50 years ago, even though most banks and lenders now have more information available digitally than ever.
We’re changing that.
Now, banks and lenders that use Cloudvirga’s software on top of their LOS of choice can, during a live conversation with a borrower…
- Run credit
- Qualify the borrower.
- Check debt-to-income ratios.
- Put together loan scenarios to share with the consumer.
- Collect e-consent & deliver disclosures.
- Order appraisal and have the borrower post payment.
In other words, lenders with access to Cloudvirga’s system are empowered to work faster and more independently. They can close loans more quickly, without haranguing their colleagues or waiting for those colleagues to get back to the office. They can interact with interested, motivated borrowers and deliver those borrowers real options, in real time. The consumer can either submit their application via a slick mobile online experience, or the originator can do it for them, or alongside them. And their colleagues can do less busywork and focus on the kinds of things that can move the needle.
Equipping Loan Officers for the Future of Mortgage
The best Loan Officers have always been entrepreneurial, personable, and persistent. Increasingly, the new generation of Originators is finding that those key traits don’t really align with being tied to a single office space. They’re finding that it’s much easier to do their job when they can work from anywhere – a Starbucks near an open house, for example, or a coworking space.
Lenders aren’t the only ones whose attitudes about where it makes sense to work are shifting, either: coworking spaces have seen steady growth for most of the last decade. By 2030, analysts expect 30 percent of office jobs to be located in coworking spaces.
If that model is going to work for Originators, they have to be able to close loans without hovering over their colleagues’ desks. They have to be empowered to close loans with tools that make the process seamless and immediate.
And that future is within reach. As more and more mortgage industry participants adopt technology like Cloudvirga’s, lenders will find that micromanaging no longer needs to be one of their top skills.