KOKOMO, Ind.-Mortgage loan volume doubled last year at $175-million Solidarity Community FCU here, thanks to an online mortgage-application platform. Making the news even better: borrower credit was of "wonderful caliber."
The platform, which includes applications integrated with pricing, approvals and disclosures, originated about 40% of Solidarity's total mortgages for 2009, said DeAnna Holloway, VP-mortgage lending. More than 60% of all online applications resulted in closed loans, she said.
The self-service mortgage-application system, called PowerSite Consumer, is delivered from the web by Mortgagebot of Mequon, Wis. Mortgagebot is integrated with Solidarity's loan origination system, which the CU still uses to take walk-in or telephone applications, said Holloway.
The credit union deployed PowerSite in 2008, and despite the increase in closed loans, staffing has remained fixed at five employees, she said. The credit union closed 276 mortgages worth nearly $34-million in 2009, up from 168 mortgages worth about $18-million in 2008, said Holloway.
What impact does PowerSite's 20-minute application process have on Solidarity's mortgage volume? "Applications taken in our LOS by a mortgage interviewer make for a much lengthier process. The online automation is a time-saver because the member has already entered all the necessary information, and it's imported into our LOS. Mortgagebot communicates with Fannie Mae Underwriter and the credit bureaus, which frees up our underwriters' time."
Convenience and speed are critical, agreed Jim Jones, president and CEO, First Wellesley Consulting Group in Wellesley Hills, Mass., a research firm contracted by MortgageBot. "The platform's pricing interface connects electronically to credit bureaus and underwriting systems and reports risk-based pricing back to the consumer immediately. Disclosures are displayed right after the application is submitted. I can't overstate the value here."
Solidarity is not alone in its success. Louisiana FCU of LaPlace, La., used PowerSite to triple its annual mortgage volume from 2004 to 2009, all without adding staff, according to Linda Boe, mortgage supervisor at the $131-million credit union.
Online application volume at CUs as a whole is getting a boost from PowerSite, according to Jones. Online applications grew by an annual average of 82% from 2004 to 2009 among credit union clients studied by First Wellesley, according to Jones. "Part of that is because of the point-of-sale integrated interfaces."
CUs are getting more applicants, but the applicants are also of higher quality, Jones continued. Average credit scores in applications taken by Mortgagebot rose to 732 in 2008, up from 709 in 2006. Average household income was at about $94,000 in 2008, up from about $85,000 in 2006.
"Credit scores have been surprising, and we have far stronger loans," said Holloway. Mortgagebot reports show that the average loan amount at Solidarity increased from about $108,000 in 2007 to about $121,000 in 2009, "which is great for our area."
The 350 CUs that use PowerSite have an easier time following-up on applications that are abandoned online, said Jones. Mortgagebot can move the app from the online channel into an LOS or workflow system, where a loan officer can pick it up.
PowerSite makes sure applications meet January's RESPA regulations, she added. "I rely on Mortgagebot for compliance."
As part of a lending campaign, Solidarity collected members' business cards and used the PowerSite alerts feature to sign up members for automatic rate e-mails. And PowerSite widgets give credit unions an easy way to flash current rates at their websites.
CUs use Mortgagebot as a single point of reference for each step in the application process for both the consumer and CU employees, from loan officers to tellers. PowerSite allows members to apply online or employees to originate a loan in the branch or call center.
