He might be new and relatively unknown in the home mortgage industry, but the head of Natwest's mortgage unit does not intend to stay that way.
"We are setting up to be a superregional player," said Joseph G. Wessely, managing director of Natwest Home Mortgage Corp., Wall Township, N.J.
Mr. Wessely was named managing director of National Westminster Bancorp.'s home mortgage unit in January. He has been with Natwest for 11 years and was part of the bank's warehouse lending operations four years ago, but this is his first foray into the home mortgage lending business.
In his new position, Mr. Wessely has big expansion plans. He also wants to concentrate on new marketing strategies and polishing Natwest's service, which he said would draw and keep customers.
Mr. Wessely's plans for Natwest's growth will start with saturating the markets it is already in. Within the next year, Natwest will move into new geographical areas.
With its acquisition in June of Union Financial Corp., McLean, Va., Natwest extended its reach beyond its original markets - New Jersey, New York, Connecticut, and Pennsylvania - into Virginia, Maryland, and Delaware.
"We will use the Virginia site as a regional processing center and move through Virginia and down through the Carolinas," he said.
In the third quarter of 1996, Natwest will move into Massachusetts and New Hampshire, Mr. Wessely said.
The Union Financial acquisition added $37 million to Natwest's servicing portfolio. Mr. Wessely said he wants Natwest to service between $12 billion and $15 billion of loans by the end of next year. Natwest's servicing portfolio is currently $5 billion.
Natwest has more than doubled its loan staff and is moving the mortgage subsidiary's offices to larger quarters in the fall.
In its expansion efforts, Natwest is concentrating on customer service, Mr. Wessely said.
Natwest is focusing on selling customers only what they need, he said - not on pushing products just to sell more. This method goes on the assumption that the bank parent will be able to cross-sell other bank products if the customer likes the service he received from the mortgage unit. Natwest tries to be in the middle to lower tier on pricing, Mr. Wessely said. It is assumed that with the emphasis on service, customer loyalty will follow.
"I send a personally signed letter to all customers after their loan closes," he said. "Rates are very, very important, but people are looking for service." Natwest is also planning to put a page on the Internet's World Wide Web to make it easier for people to get information, he said.
Besides extending Natwest's geographical reach, Mr. Wessely is honing his marketing skills to reach customers who are already in Natwest's market but who might be difficult to reach with traditional methods. A mobile mortgage van is already on the road to reach customers in areas where they do not have easy access to a Natwest branch.
To help customers feel comfortable with the mortgage process, Natwest is rolling out an interactive television pilot program. Customers can use it in one branch in New Jersey or at home, with access to a cable system that carries it.
The customer watches a loan officer on a television screen, where personalized financial information and loan options are displayed with graphics. He or she talks to the loan officer through a telephone. According to market research, one tool customers like is a pen the loan officer uses to highlight information on the screen, like TV sports commentator John Madden uses during football replays.
Mr. Wessely said half of the customers who use the interactive television presentation purchase a Natwest loan. Most of those who do not have not yet decided on a home they will buy.
At the end of the session, the customer gets a printout of all the options discussed via television and a videotape of the session.
"We did extensive market research, and found that people are most comfortable sitting in a chair and watching TV," Mr. Wessely said. And what might be the most attractive part of the program: "They can always turn it off."
