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Description:
betterchoiceloans.com
The Introduction:
It’s no surprise that online mortgage loan origination has quickly become the most popular way for home buyers to shop for a home loan. With information at your fingertips and just a mouse click away, online shoppers can arm themselves with anything and everything mortgage related.
The Platform:
Better Choice Loans aims to capture the growing segment of online home loan shoppers by providing an easy and efficient way to instantly compare mortgage interest rates from several lenders in real time.
The Result:
We’ve simplified the home loan process using automated proprietary pricing technology to aid in distributing reliable, up-to-the minute rates and closing costs, along with related educational commentary.
The Technology:
In the not so distant past and still prevalent among the vast majority of brokers and lenders is the antiquated method of retrieving and disseminating product and pricing information to prospective customers. It’s a slow and excruciatingly tedious process that almost entirely undermines a company’s capacity for growth.
Here’s an example:
John Q. Customer fills out an online questionnaire form on a mortgage company’s website that promises great rates.
Tim, a loan officer, receives the request and is eager to provide John an interest rate/ closing costs estimate.
He compares rates from a few lenders by scouring through pages of investor guidelines and product books.
Tim then contacts third party providers to the transaction, such as appraisers, and title and escrow affiliates for an estimated cost of service.
With the compiled information in hand, Tim proceeds to put together a cost analysis of perhaps one or two rate/closing cost options, into an itemized estimate of fees organized into a one sheet proposal for John’s review.
Why doesn’t this work?
In the time Tim spent checking rates/closing costs, they could have easily shifted, making his offer null.
John, displeased with the amount of time Tim takes to get the information may have already decided on another lender.
Tim is only able to put together a single rate quote, limited to perhaps one or two loan programs.
Tim’s lack of efficiency may end up hurting his chance to lock in a favorable interest rate, costing John money.
Tim’s lack of time conservation translates into a considerably lower work load capacity.
Tim’s value as an ambassador of corporate ideology is less effective in contrast to more efficient organizations.
The impact of technology has broken down traditional boundaries of doing business in the mortgage industry. At Better Choice Loans customers can search rates, apply and lock their interest rate online.
Our web platform utilizes the latest in automated pricing technology to help take the guesswork out of shopping rates. In just a few short seconds, visitors to better choice loans can get rate and closing cost quotes for any loan scenario and choose from over 250 different loan program options.
We want to target the consumer who doesn't like to waste time surfing site after site and filling out question after question, only to wait for replies to get the mortgage information that they need. Our goal is to deliver what the home buyer wants in a streamlined fashion, giving instant gratification to the borrower. The borrower now only needs an Internet connection to get real-time rates and a closing cost estimate in seconds.
Licensing:
State banking and finance departments require that all mortgage companies go through an exhaustive application process to ensure the company's credibility and to protect their state's borrowers. The “barriers to entry” as it is called, requires mortgage companies to provide; personal and company financial records, finger printing, FBI background checks, Surety Bonds, Fidelity Bonds, Application fees, net worth minimums and submit to state periodic audits to be approved as a mortgage company. This process can take up to 1 year.
By operating as a wholly owned subsidiary of a federal savings bank, better choice loans will be exempt from state licensing laws allowing for a rapid expansion into new markets without the costly expense of branch and or loan-officer licensing.
Leads and Marketing:
Better Choice Loans has been awarded the Upfront Mortgage Lender designation by Jack Guttentag, Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania.
Guttentag, who publishes the www.MtgProfessor.com web site and is a well-known writer on mortgage issues for consumers, awards the Upfront Mortgage Lender (UML) designation to lenders that meet rigorous requirements for open and honest communication with borrowers.
The UML program is designed to help consumers make informed decisions about their home financing options. The program requires that lenders meet the following criteria in order to qualify as an Upfront Mortgage Lender:
• Provide quick access to information on market niches the lender prices online
• Disclose all lender fees, including points, origination fees, and any fixed-dollar fees, and guarantee them to closing.
• Disclose all third party fees with the best estimates possible, indicating which if any are guaranteed.
• Provide a clear explanation of rate lock requirements, and disclose them prominently
• Disclose all the information about Adjustable Rate Mortgage (ARMs) needed by shoppers to make intelligent decisions
• Informs borrowers if its loan officers are compensated in a way that gives them a financial incentive to overcharge the borrower
The Upfront designation affirms our commitment to provide a positive experience for our customers, and our belief that consumers should be knowledgeable about the loan products available to them.
Radio, Television, Newspaper, Online Marketing, Organic Search, Pay Per Click, Direct Mail, Affiliate links, Press Releases and other media outlets will also be used to attract new customers.