Digital Transformation – Strategy for Mortgage Lenders
November 8, 2021: The activities and processes related to residential real estate mortgages loans are labor-intensive and tedious. As a result, they take plenty of time to execute. However, the good news is that we developed a proprietary methodology to lower the mortgage origination cost stack. We will look at how you can examine and evaluate your current lending business with Teraverde’s Digital Transformation strategy and make the most of Teraverde Process Enhancement services to streamline your lending operation and tech stack configuration.
Teraverde believes and takes inspiration from a speech President John F. Kennedy gave in 1962 to challenge the American people and businesses to send a man to the moon and bring him home safely by the end of the decade. Kennedy didn’t live to see his challenge fulfilled. On July 20, 1969, just seven years from Kennedy’s bold vision, Neil Armstrong and Buzz Aldrin set foot on the moon. Given the backdrop of this lunar landing, it should not be too hard to complete a real estate mortgage from application to closing in less than 10 days. If you start with the end in mind, you don’t have to take one giant step. A carefully defined process from Teraverde will get you there.
We developed a proprietary defined process to examine each activity within a real estate mortgage transaction and see how it is possible to create incredibly fast turnaround.. We call this process the EAOO Process. We sequentially map the process to determine how the existing process, step by step, can be Eliminated, Automated, Outsourced or Optimized.
This is how you can evaluate your lending business procedures and practices and apply a simple four-step strategy: Beginning with the end in mind, evaluate your entire lending business process and apply the EAOO methodology.
- Starting at the end of the process, work backwards and examine every task in your process step by step, action by action.
- Apply the EAOO regimen:
Eliminate – Determine if you can eliminate the task by considering how it could be consolidated with another task; if you cannot eliminate the task, you should consider automation.
Automate–You can automate the task internally using technological solutions, such as robotics process automation or workflow management. With the right technology and tools, it is possible to automate manual and tedious tasks, allowing your team to spend more time and resources on activities that add real value to your business. However, if you cannot automate the task internally, consider whether the task can be outsourced.
Outsource– You should consider outsourcing the task if it cannot be automated. Note that by outsourcing the process or task a lender may be able to free up resources and time to focus more on your core competencies.
Optimize– This involves finding the most efficient and cost-effective method to accomplish the task. And with the application of modern and convenient analytic tools, you can quickly identify areas for improvement and then come up with better solutions.
The Teraverde Process
EAOO is a practical and simple process that will facilitate your deployment of optimal business process, workflow design and the best use of your existing technologies. With Teraverde’s Mortgage Executive services, you can achieve operational advantage, financial benefits, and performance transparency while managing risk. Best of all, EAOO usually optimizes your existing technology stack. No need for time consuming and expensive conversions.
As Erin Palmer, CEO of Blue Phoenix Management Advisors notes,
“Asking whether you are using the most efficient approach to solve each task in the process is more important than your technology choice. Clients leveraging Teraverde’s EAOO services find significant savings in time, which translates directly into revenue.”
EAOO is a unique approach that intentionally helps you apply disruptive digital transformation to your business to optimize business processes. When you follow EAOO, you will optimize your entire business process.
Teraverde help lenders develop a resilient business model that can sustain profitability through all phases of the lending business cycle. Teraverde helps you “Work on the Business” (not “In the Business”) to develop that flexible, efficient, scalable business process. We help you shape a new and better environment for sustained profitability. We help empower mortgage executives and decision-makers with our domain knowledge, data-driven insights, and innovative EAOO process.
Teraverde has deep mortgage domain knowledge that has been used successfully by many lenders, banks, and financial institutions. To successfully and efficiently assist mortgage clients, Teraverde understands the nuances of the mortgage industry and is cognizant of the industry’s dynamic and ever-changing landscape. The goal is to understand and evaluate your business model, provide valuable insights based on our experience, and implement improved and streamlined processes.
For the steps on executing the EAOO strategy and how you can get started in your mortgage lending business. Download the EAOO Strategy Tips.