While mortgage servicing companies face a lot of challenges, they should not let the current climate derail their efforts. They should focus on creating a great experience for their customers and continue to grow their business.
One way to do this is through database marketing. This involves sending emails to past and prospective borrowers with industry news and company updates.
1. Invest in Technology
Mortgage companies are investing more in technology to boost efficiency, according to Seth Appleton, president of MISMO, the industry’s standards development group. He said closing technology is getting a lot of attention because lenders are trying to salvage refinance volume in the current rate environment.
The top mortgage servicing companies are finding ways to balance cutting-edge technologies with a personal touch. This allows them to meet the needs of consumers in an ever-changing landscape. They must also make sure that their systems are secure and compliant with regulatory changes.
Lenders should use data-driven communications to help customers understand their loans and the impact of regulatory change on them. This can lead to improved customer service and loyalty. However, it is important to remember that no amount of technology can replace human interaction and empathy. That is why it is essential for lenders to invest in technology that complements their core business model.
3. Create a Culture of Excellence
The culture of a mortgage company is an important part of creating a successful business. It includes things like the tone set by leadership and the level of care that is displayed towards employees. A strong culture can also lead to a higher level of service for customers.
One way to create a culture of excellence is by encouraging open communication. This can include everything from clearly explaining projects to addressing issues quickly and openly. This is true whether you are a manager or an employee.
Another way to create a culture of excellence is to encourage learning and development. This can be done by providing opportunities for employees to learn new skills and by offering training programs. By doing this, you can create a positive workplace environment that will encourage people to stay at your company.
5. Build a Team of Experts
Building a team of experts is one of the keys to success for mortgage servicing companies. The right team members can help you achieve your goals and propel your business to new heights. There are a number of ways to find expert candidates, including job boards, social media, and referrals from other professionals in your industry. Once you have identified some potential experts, be sure to set up a call or meeting to discuss your needs and expectations. You should also negotiate terms and conditions in advance to avoid any misunderstandings down the road.
Wells Fargo, PNC/Midland and KeyBank are the largest primary and master servicers for CMBS, CLO or other ABS loans; CWCapital Asset Management LLC is the largest special servicer for credit company, pension funds, REITs and investment fund loans; and Walker & Dunlop and Berkadia are the largest special servicers for Fannie Mae and Freddie Mac loans.
6. Be Proactive
Taking initiative and being proactive are two characteristics that many people aspire to have, but they’re difficult to achieve. In order to be proactive, you need to have a clear set of goals and take action that aligns with those goals. You also need to be aware of your surroundings and seek information that challenges your existing beliefs.
A proactive person anticipates problems and works actively to prevent them from occurring. For example, if you have an important project due in a month, a proactive person would start working on it earlier rather than waiting until the last minute. They also communicate with their supervisors to ensure that they’re not given more work than they can handle. This allows them to meet deadlines and stay productive. Moreover, it can also reduce the stress and anxiety associated with meeting those deadlines.
7. Reach Out to Prospects Regularly
Whether you prefer to communicate via email or phone, it’s important to reach out to prospects regularly. This will help you stay top of mind and increase the chances of a sale.
If a prospect gives you a rough guideline on how often they want to be contacted, abide by that. But, if they say every 90 days or so, you might want to increase the frequency a bit.
A unique and memorable way to reach out to a potential client is to send them a physical gift. You can use this to show your personality and make them laugh. For example, Reddit user u/thesonofnarcs sent Outback Steakhouse a giant plush crocodile in the mail. The restaurant called him back immediately. A personalized and memorable approach is a great way to stand out from the competition.
10. Take Care of Your Customers
In the mortgage servicing industry, customer satisfaction is critical. Providing excellent service can lead to increased customer retention and more referrals. It can also help improve the reputation of the company. This can be achieved by offering a variety of different services, including reducing the number of customer complaints, allowing customers to find answers to their questions, and keeping them updated on the status of their loan.
Customers care about four specific dimensions of their mortgage experience: reassurance, transparency, simplicity, and speed (Exhibit 2). Mortgage servicers can increase satisfaction in these areas by offering helpful employees, proactively communicating with customers, and addressing issues promptly. In addition, they can reduce customer complaints by reducing the number of escalations and by minimizing repetitive inquiries from the same customers.
