This blog has been pointing to inefficiencies in the mortgage industry for quite a while now, and to the fact that the industry is slow on the uptake when it comes to software/IT advancements, process change or improvement, or any type of process innovation.
Well, with the new year comes the renewed cry for the industry to catch up with the rest of the business world. With immediate focus on new legislation, bank mergers and bailouts, and consumer confidence at a historic low, the rebound of the mortgage industry and the banking industry are becoming more and more critical each day. Other industries are increasing focus on new pricing and IT strategies, according to the Professional Pricing Society blog, and now software developers in our own industry are shouting “evolve or die”, something outsourced providers and SaaS providers in the industry have been chanting since before the crash. Here is a recent example:
“Sthenia Solutions CEO Paul Piers unleashed a torrent of strong words for his colleagues in the mortgage industry who are unwilling to evolve to meet the needs of a changing market. In a statement available at www.loanmarq.com/benchmarq, Piers said the mortgage industry is “foundationally broken” and challenged professionals must “innovate or exit.”
“After the subprime mortgage debacle, mortgage people should have received a wake-up call,” said Piers. “Mortgage people need to tangibly raise customer service through education, over-disclosure and communication.”
Piers referenced a customer satisfaction survey conducted by J.D. Power and Associates that showed customers are more satisfied and more loyal to a lender when their loan officer provides status updates, communicates proactively and acts transparently and ethically.
“Mortgage people cannot continue status quo when their potential customers are screaming for change,” Piers said.”
The next few weeks should be very interesting - more commentary to come.
