Making the Case for Using Smart, Consumer-Direct Mortgage Software to Provide Pre-filtered, Pre-Qualfied Leads

Boston–June 22, 2012– Today a mortgage originator must use their web site to “attract, educate and capture the mortgage borrower.” With 85% of first time home borrowers shopping the web, a bank may only get one chance at that prospect.  Creating a better online customer experience is the best way to capture that lead.  By using a smart, consumer direct platform to pre-filter and pre-qualify mortgage leads, a bank can be sure that the best leads are followed up immediately.  Research indicates that pre-filtered leads responded to within 1 minute result in nearly a 400% improvement in conversion rate.

But with conventional online mortgage application forms, the opposite is true. Research shows too many Internet leads derived from conventional online forms are followed up too slowly or not at all.  How many millions of dollars in volume is lost due to poor follow-up on an Internet lead?  Benchmarks show many banks fail to follow up Internet leads within 24 hours.  A pre-qualified lead from a consumer-direct solution, however, is followed up immediately by a loan officer.

How is that accomplished? 

Mortgage Application Software Approval

Make a Decision with LendersLogic

Today’s Internet savvy borrower begins the origination process online.  As a loan originator, the bank may advertise, use pay per click or other media.  Banks spend on advertising and marketing and have a room full of loan officers.  When the mortgage borrower gets to the bank’s web site, what is the bank going to offer them?

Will it be the same-old-same-old fill this form out and “someone will get back to you,” which research shows about nine out of 10 people will fail to complete and go somewhere else.  Or will you, as the originator, offer the borrower the opportunity to apply online and receive an “instant approval.”  And in today’s world where the competition is only a mouse click away, nothing holds a customer like the offer of an instant automated approval.

Experts say that given the inherent complexity in mortgage products and yet the strong consumer belief that mortgage products are undifferentiated, it is no surprise that the initial contact with the customer is so powerful.  That is one major reason why it is so important to give the mortgage borrower a positive online experience.

A positive consumer online experience translates to a higher volume of quality web site leads. The LendersLogic™ consumer-direct mortgage application solution provides the bank with pre-filtered, pre-qualified leads so the bank will no longer need a room full of loan officers to handle Internet volume.

 Solving the problem of abandoned applications

Research shows that Banks using LendersLogic experience a high rate of completed applications.  Statistics show five out of 10 people complete the LendersLogic application, a 500% improvement over conventional online applications.  The LendersLogic wizard like approach, the ability to self serve on rates and programs, and the lure of an instant online approval,  pulls the borrower all the way through to the “Apply” button.

As for the consumer, nothing is more immediate than an instant online approval.   The LendersLogic experience shows that once a mortgage borrower receives an approval, they stop shopping.  The business is then the banks to “lose.”

A customer acquisition study published by Mortgage Banking Magazine stated, “… Regardless of the outcome, the timeliness, process and accuracy of the lending decision have a large impact on customers’ overall experience with their financial institution.”

According to the study,  nothing has a more profound impact on the borrower than a loan approval.  According to the study, 71% of mortgage banks and credit unions will employ a consumer direct smart application in the “near future.”

Bottom line, according to Forrester Research, lenders not only have to have a marketing plan to draw mortgage borrowers to their web sites, they also have to deliver a mortgage experience that reflects how borrowers wish to engage with their financial institutions.

With LendersLogic, the cost of its smart application platform is mitigated by its SaaS or cloud delivery option. Allowing banks to employ expensive technology on a subscription basis allows for an immediate return on investment. LendersLogic pays for itself after just a couple of closed loans.

LendersLogic provides online mortgage point-of-sale technology to banks and credit unions to automate mortgage applications and approvals.  Lenders use the solution to automate the mortgage point-of-sale channel.  LendersLogic provides pre-filtered, pre-qualified leads to the sales channel. The LendersLogic smart mortgage application guides users in a wizard-like questioning methodology.  Borrowers and loan officers can complete mortgage applications and get conditional approval — with electronic disclosures — in as little as 10 minutes.

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