Saturday, February 20, 2016

Closing times increasing? Check your undercarriage... by Cal Haupt

No matter how big your engine is or how fancy your marketing is you have to have all cylinders firing in the right sequence to get the speed and power with a chassis that can deliver the power to the road.  Operations and mortgage loan file flow is no different.  You have to have the right people working together in a sequence that optimizes speed and accuracy with a foundation that conveys the service to the client.

JD Crowe, President, Southeast Mortgage, sent me an article this morning.

I glanced at it the other day.  I disregarded the catchy title given SEM continues to execute in our 8 - 10 day time frames even with the new layers of client protection.

This morning it dawned on me what is happening.  The industry apparently is processing with the same methodology used since 2007-2008.

New regulation and client protection requires an updated and innovative approach to processing.  Even SEM had to evaluate the final implementation of TRID before we crafted the final map and sequence to guarantee our 8-10 day turns at volume.

The best way to look at it is to refer to a 1908 Ford Model T suspension.  Would a 1908 suspension work with modern engines in the shiny new cars with the flashy marketing of today?  The car looks modern, it sounds great, and smells new BUT how do you think it will drive with a 1908 suspension?  Our industry has new improved regulations and risk models that require a NEW suspension to harness the power and provide the client and referral sources with the Competent FAST service that a shiny new car portrays in their marketing.

In my opinion, look underneath the car before believing the flashy marketing or be prepared to dance for the 50 days to close.

Cal Haupt
Chairman and Chief Executive Officer
Southeast Mortgage of Georgia, Inc.

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