September 2006 - There was a time when a homebuyer might stay in the same loan for a lifetime. Those days are long gone. Today, borrowers will refinance the existing homes or move to a new one, on average, every five years. For the mortgage loan officer working in the field today, that means that the lifetime value of a customer approaches $100,000. But earn it, loan officers have to learn how to create customers for life.
Creating that kind of loyalty requires the loan officer or broker to know when the borrower is likely to need a loan, to be an expert at helping that borrower choose the right loan product and to do everything possible to make the process smooth and trouble-free for the borrower. To do that requires the right technology.
To be successful today, brokers need access to good tools for marketing, prospecting, loan counseling, application capture, interfacing with automated underwriting systems and other third party settlement services providers, as well as some loan processing and closing document generation. In addition, the loan officer needs a bullet-proof contact management system that helps keep customers coming back and generating referrals.
Getting all of these tools from the same technology platform was impossible just a few years ago, but since 2001 hundreds of loan originators have been using LoanMagic from Document Systems Inc. to meet all of these needs, and more.
A Proven Innovator
Founded in 1988 and headquartered in Carson, Calif., Document Systems, Inc., is a mortgage technology company that develops software, processes and Web-based systems for the production of compliant loan document packages. The company earned success early on with its DocMagic closing document preparation system. Thousands of mortgage deals are run through the software every day, making DSI one of the most successful mortgage-related technology firms in the business.
In 2000, DSI developed the industry’s first fully integrated mortgage customer contact management system, LoanMagic, that is specifically designed to meet the needs of loan officers to help streamline the tasks involved with acquiring leads, managing contacts and gathering all personal and credit information necessary to secure a loan.
Pamela Milano was Senior Vice President for Countrywide’s Consumer Markets Division when Countrywide began rolling out LoanMagic to its retail mortgage loan officers in 2002.
“This was exactly the kind of took we were looking for,” Milano said. “Our loan officers needed a better way of tracking their contacts and Countrywide needed a more reliable method of tracking the leads we were sending downstream. LoanMagic made it possible for us to track every contact, to know exactly what happened to every customer.”
A Tool for Today and Tomorrow
Last month, DSI hired Milano to take over the development of LoanMagic. Her 25 years in the mortgage industry along with her first-hand experience with the tool makes her an excellent executive to take the product to a larger market.
“I developed the training material for Countrywide and managed the mainline support,” Milano said. “I know exactly what this tool can do and I have over 250 registered users that are passionate about using it every day. It will double your referrals and keep your customers coming back for life.”
Milano says LoanMagic is revolutionary because it includes all the functionality that was impossible to find in a single product in the past. The software is Web-based but with a local client. This allows the loan officer to use the functionality even when not connected to the Internet. The tool syncs up automatically as soon as a connection is available.
Loan officers are currently using LoanMagic before, during and after the sale to create customers for life.
LoanMagic's contact management solution makes it easy to acquire leads, manage contacts, and gather all of the personal and credit information necessary to secure the loan. It makes it possible for the loan officer to know when a person needs another loan almost before they realize it.
Built in loan program analysis tools allows the loan officer to perform side-by-side comparisons of any of the 10,000 loan programs already built into the DocMagic database. Adding more programs is easy and simple HTML reports allows the loan officer to send the data out to prospects with just a few clicks.
Credit is approved easily and instantly. Connections embedded within LoanMagic allow seamless interface with Fannie Mae's Desktop Underwriter and Freddie Mac's Loan Prospector, so everyone knows what the borrower will qualify from almost instantly.
LoanMagic does away with the entering and re-entering of data as everything is integrated in a single platform. Once the program is chosen, a single click takes the user into DocMagic and error-free customized closing documents will be ready for delivery anywhere in seconds.
LoanMagic also includes tools to generate referrals and ensure customers return. Payoff, Accelerated Biweekly Payment, Extra Payment, Refinance and multiple other reports can be customized to the borrower’s financial situation and delivered on paper or via e-mail.
LoanMagic's LoanWatch will monitor balloon terms, arm adjustments and interest rates on all loans within the LoanMagic Contact System. The system makes it possible to continue working with and for the borrower long after the loan has closed. When it’s time for another loan, integrated marketing tools make it easy to get in touch with them.
Profiting from Information
What LoanMagic really does for loan originators is give them the power to profit from the information they have available about their prospects and clients. Through the use of 11 powerful reports, LoanMagic sifts through all of the data the loan officer has acquired and returns the most profitable action steps. The brokers that take these steps will create customers for life and enjoy the success that carries with it.
- Rick Grant