Borrower Experience

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Digital Transformation: The State of Play for Community Bankers

2020-09-24T14:23:21+00:00February 22nd, 2019|

BY PAUL C. KATZ Digital Transformation: The State of Play for Community Bankers Digital transformation was on the program – and on the minds of the attendees – at the American Bankers Association Conference for Community Bankers in San Diego this week. I moderated a panel featuring Bryan Luke, President and Chief Operating Officer of Hawaii National Bank, and two of my colleagues, Ken Janik and Colgate Selden. We spoke directly with conference attendees about the relationship community banks have with digital lending. Our panel – Digital Lending: Risks and Opportunities – explored the economic, technological and social forces driving digital transformation efforts. We examined different tech-implementation strategies bankers are considering and conducted real-time audience polls, providing timely insight into bankers’ thoughts on digital lending. Here are some of the highlights from Tuesday’s session. We set the stage by sharing some provocative predictions from leading industry consultants and

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Four Reasons Why Outsourced Mortgage Fulfillment Warrants a Fresh Look

2020-09-24T14:25:06+00:00May 18th, 2019|

Even in the best of times, mortgages can be challenging for community lenders. Fannie Mae reduced its 2019 volume estimate, and the 2020 outlook isn’t much better. Average origination costs have hit a new high – $10,200 according to research by the Mortgage Bankers Association and Stratmor – squeezing margins even more. Factor in increased competition – and the added tech investment – from money-center banks and fintechs, and it’s safe to say we’re confronting some stiff headwinds. Recently, three mid-size banks examined their situations and concluded exiting the mortgage business was their best option . As one CEO summed it up: "We have been in the mortgage banking business for many years and have weathered unfavorable mortgage banking environments in the past. Unfortunately, the current poor operating environment is coupled with fundamental changes in the mortgage banking industry, such as more burdensome regulations, required investment in expensive technology, fierce competition,

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With Record High Mortgage Origination Costs, Can You Actually Save with Outsourced Fulfillment?

2020-09-29T18:19:41+00:00July 18th, 2019|

Mortgage origination costs keep climbing, reaching a record $9,299 per loan in the first quarter of 2019, according to the Mortgage Bankers Association. This upswing has been fueled by rising compensation, benefits, technology and compliance costs, putting pressure on margins and leaving originators in a tight spot. Source: American Banker Outsourced mortgage fulfillment is recognized for its ability to help mortgage lenders manage costs and remain competitive in the face of ever-increasing built-in expenses. Many forward-looking lenders are embracing comprehensive outsourced fulfillment solutions to improve results, save time and free up resources to focus on the customer experience and contribute to overall business growth. But where can lenders actually save by outsourcing their mortgage operations? Does outsourcing really reduce cost and increase lender profitability? In a word: Yes. The key is to control what you can – and you can control fulfillment costs (and gain added savings along the