Mortgage: Harnessing Push Tech To Pull in Loans

Lenders, unwilling to wait passively for prospects to visit their Web sites, are experimenting with various "push" and "pull" strategies to originate new loans and generate more revenue.

The Web mostly operates with "pull" technology: Users with Web browsers "pull" information to their PCs from Web servers. But then consumers spend too much time, with mixed results, locating needed loan information, often finding lenders' sites randomly. But "push" technology is designed to solve these shortcomings by collecting and delivering user requested information directly to PCs. PointCast, Inc.'s PointCast Webcast service is an example of "push" technology. Early results, although promising, point to a downside: information overload, clogged networks and overworked PCs.

The Huntington Mortgage Co., based in Columbus, OH, has had limited success in turning Web visitors into customers, according to its president Frederick Taylor. "We have received 1,000 to 2,000 requests for our application diskette but have closed fewer than 50 loans," he says. The application diskette, advertised on the web site and sent through the mail, presents a problem. "People want to apply for their loan today. Diskettes can take three to four days to arrive." To increase the number of closed loans, Huntington is introducing a Java program at their site so prospects can immediately complete the application on-line. What revenue gains are anticipated by Taylor? " I believe it will increase the number of loans five-fold or more by allowing consumers to immediately complete the application."

As for lending giant Countrywide Home Loans, Inc., of Pasadena, CA, it's using an e-mail system to push customized information out to prospects. As part of this effort, the bank's LoanWatch service pushes customized e-mail to prospects comparing their existing loans to the current market. And to follow up, company representatives send personalized e-mail messages after receiving on-line applications.Says evp Cameron King, "One thousand people complete the on-line application each week. Last month we closed eighty loans."

Salem Five Savings Bank, of Salem, MA, an Internet pioneer, is also looking carefully at "push" technology, but it's currently betting on "pull" technology to grow the bank's mortgage revenue. Salem Five's home page offers relocation and application kits, checking accounts and access to Salem Five's second site called homelisting.com., which has over 3,000 New England real estate listings.

In terms of a "push" strategy, Salem is working on a "push" financial planning/personal investment product that can be personalized by its users. Says svp Michael R. Fitzgerald, "Push technology will (eventually) make it easier for lenders to sift through prospects and easier for customers to receive specific information and be less confused."

Although the evolution and commercial value of "push" technology may be unclear at present, what is clear is that lenders are realizing that for their Internet strategies to grow mortgage revenue, whether "push" or "pull," systems must be enhanced to provide prospects with immediate service, personalized information, two-way communication and strong backroom support.

-jones tfn.com

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