CoreStates Adds Home Loans To Corporate-Affinity Strategy

CoreStates Financial Corp., eager to raise its profile as a mortgage lender, is expanding its corporate-affinity strategy to include home loans.

The Philadelphia company, which already markets credit cards and brokerage services to business clients' employees, said it expects the new drive to help boost its mortgage originations to $400 million in 1996. That would be a one-third increase over this year's expected volume of $300 million.

Vincent DiBiase, a senior vice president of CoreStates Mortgage Services, said employees of corporate banking clients represent a significant cross-marketing opportunity. Mr. DiBiase and another top mortgage executive, senior vice president Patrick Yoder, personally began calling on business clients and their staffs this month.

"A bank of our size must continue to be a full-service bank," said Mr. DiBiase, who was hired six months ago to help build mortgage sales.

The company's heightened emphasis on home lending comes at a time when mortgage demand is lackluster. Mr. DiBiase acknowledged that the sales environment is sluggish, but said CoreStates sees ample growth potential.

The new push will help CoreStates "generate the originations that would go elsewhere," he said.

CoreStates also is harnessing its technology to bring in new mortgage business. The company is expanding a telemarketing campaign to put prospective homebuyers in touch with loan officers during daytime and evening hours.

The mortgage group is in the midst of adding two loan officers and support staff to a telemarketing unit that now has three employees.

The loan officers will use a number of software support products - including a system from Freddie Mac - CoreXpress, that expedites loan processing, Mr. DiBiase said.

The system takes the borrower from application to approval and closing within 15 days, compared with traditional procedures which take 30 to 60 days.

Later this year, the bank said it expects to begin using a voice- activated system to help familiarize customers with the mortgage process. The system will ask a series of questions to give prospective homebuyers an idea of what they can and cannot afford, Mr. DiBiase said.

Observers said CoreStates has a knack for developing the right selling strategies when it wants to promote a product, and they expect mortgages to benefit from the planned push.

"In terms of marketing savvy, CoreStates is up there with the best of them," said Mary P. Quinn, bank analyst with Keefe Bruyette & Woods, New York.

The bank is especially adept at making the most of technological systems, Ms. Quinn said. "They've very definitely got a lot of processing businesses that are leading edge."

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