Teraverde Current Commentary

Here is an small section from Jim Deitch’s upcoming book: Transforming Mortgage Banking – The Quest for Outstanding Profit and Customer Satisfaction
Jim Deitch

Here is an small section from Jim Deitch’s upcoming book: Transforming Mortgage Banking – The Quest for Outstanding Profit and Customer Satisfaction

Here is an small section from Jim Deitch’s upcoming book: Transforming Mortgage Banking – The Quest for Outstanding Profit and Customer Satisfaction

At the end of the day, the measurable results of a well-defined process, workflow and technology plan are customer satisfaction, profitability, cost, loan defects and employee retention.  A few examples:

  • One lender CEO produced outstanding results with a traditional retail focus on FHA/VA loans, with a very pronounced effort for loans to be closed on time.  His team catered to realtors that needed purchase business, particularly Federal Housing Administration (“FHA”), and closed quickly and ‘without drama’.  The reward was profitability of four times the MBA average pretax profit-- consistently.  He stayed focused to that strategy, and measured the appropriate items, set rigid service level standards and expected his team to deliver.  This lender used ‘out of the box’ technology set up for his process. The lender’s vision was simply the borrower ‘home on time’.  A straightforward promise, executed exceedingly well and with a clear strategic vision.
     
  • Another CEO lender produced outstanding customer service quality, attaining the number one position in a national survey for multiple years in a row…using a pure direct to consumer strategy, using self-designed software, and earning outstanding financial returns.
     
  • Poor results are likely when ignoring a well-defined process and workflow.  The CEO of one bank-owned mortgage bank literally catered to branch managers, allowing the branch managers to dictate many operational aspects of the lending process.  She paid them far beyond fair compensation.  Poor process, poor controls and excessive compensation cause the bank economic losses, as well as reputational risks.  This CEO appeared to have little regard for process, workflow, or structure.  The bank endured substantial economic damage, reputational damage, poor customer service, high costs and high turnover resulting from a very public issue regarding fair lending matters and regulatory and business process matters in general.


The longer I am in the mortgage banking business, the more I am convinced that the elements of success-- vision, culture, customer experience, process, workflow, technology and expected results-- are directly linked.  The successful CEOs interviewed for this book confirmed that sentiment. Keep this model (pictured below) in mind as you work through the book.

Remember that “Results” can be whatever one defines them.  For this book, “Results” are measured in customer satisfaction, superior profitability, cost, and employee retention, among other things.

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