TDCT Show the Competition They are Ready to Compete for the Broker Channel Market

Broker dependent lenders listen up, because if your business largely relies on business from the Broker Channel Market, paying attention to developments like the ones reported this past month in the Mortgage Brokers News will help you see ways that you can compete.

Look at TDCT. According to the article, TDCT captured 8.7% of the broker market but is poised to see that number increase with the introduction of the outsourcing of its broker underwriting to First National after recognizing that First National’s systems are able to generate approvals in hours vs. the days it would take TDCT’s old system to turn around and approve.

This move instantly makes TDCT that much more competitive because:

·         It and its brokers will benefit from a new online broker portal which tracks application statuses

·         Clients will no longer be directed to branches to close their deals

·         TDCT will be able to instruct deals far faster in the process because all conditions won’t have to be satisfied in order to instruct

·         Buy-downs will now be able to be deducted from the broker’s commission

What is interesting about this story is not only TDCT and the individual changes themselves, but also about TDCT taking a leap to innovate to improve services. Quite an admirable step which shows that the execs at TDCT are seeing the cost benefit to resolving inefficiencies and providing a better service.

Many financial institutions lose sight of the fact that technology and process issues can drag down production which costs millions, if not more. In this instance, TDCT recognized that they needed to make the customer experience better for its brokers and saw that their technical limitations would prevent that. Inefficient underwriting systems is a great example of an area where a FIs failure to provide can make them less competitive.

If you were to audit your underwriting department, what might you find when looking at the following?:

·         How many different platforms you are using to perform different tasks?

·         What costly issues could be resolved through new technology?

·         What tasks could be streamlined using technology?

·         The speed at which you turn around applications and what steps in the process cause slowdowns?

·         Finding out more about an applicant and property at the application stage leading to smoother closings.

Take the time, like TDCT did, to find out what pain-points exist for your clients, and you will quickly identify measures you can put in place to not just make your customers happy, but to delight them.

For more about creating efficiency when underwriting please contact Teranet today by calling 1.855.787.8439.