DS News - Bank of America

22 The Exchange William Case has been the mortgage industry since 1984 and worked at M&T Bank in its mortgage sector from 1987 to 2001. He joined American Mortgage in 2001 as EVP, in 2011 became President and CEO. In an episode of DS5: Inside the Industry, Case discussed how lenders and services can leverage technology to improve operational efficiencies. Do you believe mortgage rates will drop further? I'm an economics major, so I've learned you always have to hedge questions like that about predictions, but I would say it is certainly possible and really probably two ways that that would happen. e way bonds are trading on MBSs, we argue for lower rates. But what's preventing that currently, a few factors. One is, investor appetites are not real high right now because their coffers are full, and they've got all they can handle, so there's really not an incentive. Some have raised credit standards, they're being pickier and they're pushing prices up more to say, "Well, if I'm going to take more business, I'm going to charge more for it." I believe that will probably ease somewhere in the next two to three months definitely and rates may be affected there more. ey may not move dramatically down, but they could move down somewhat as business abates a little bit, refinances will clearly slow. en I could see more movement downward, maybe not a huge amount, but clearly some downward movement on rates. What new technology could lenders and servers use to make the industry more efficient? For the last couple of years, the industry has focused a little bit more on the loan manufacturing part of the process. Prior to that, people were focused on the consumer experience and saying, "We've got to make this the shiny object syndrome. Let's be like Amazon or somebody. How do we make this an easy process?" I think what people found is that you may have made it slightly easier for consumers with some online tools, but it really wasn't bringing you more consumers necessarily. And more important, it really wasn't decreasing your costs to produce. e industry has finally taken a harder look and is not providing more tools for what is the manufacturing process, getting loans through the system and through closing and into servicing. e mobile application, while initially was a great thing for consumers, is now more of a boon for loan officers, their assistants, and sales teams. ey can now focus more time on customer service or being more efficient because the borrower is providing and doing more in the process than they used to without having mobile apps readily available. Also, tools to verify key components of the file, income, assets, credit, and even appraisals, where we're seeing more waivers of appraisals, where we physically don't have to have a person go out and visit the property. e more those tools are being used, the more efficient the process is because the whole goal to improve manufacturing is really reducing the amount of human touches. at's where the system has always been bogged down a little bit and/or the time of the human touch. Communications between parties is also a critical piece now where business sources, if it is in the purchase sector, builders, and real estate agents that open communication between buyers, sellers, Realtors, builders, loan officers, and their teams and consumers, documents passing back and forth, notifications of key milestones along the way. ese automatic types of notifications save a huge amount of time in the manufacturing process. Finally, I would say getting into closings, there's been a lot of movement there recently too, especially with the COVID-19, to limit human contact. So people are really trying to ramp up for eClosings. e biggest part, I would say, there is for savings for most of us on our side of the industry is, the amount of paperwork and getting documents done ahead of time and having virtually everything electronic. e buyer's time too, it can be reduced, but the more that we can have fully electronic documents, again, stops the packages from having to go back and forth. Servicers have probably been more ahead of the game and not necessarily because they wanted to do the innovation, but they were taking it on the chin after the financial crisis about not being as quick to respond to consumers, their communications not being as good as they should have been. I think the servicing industry made great strides over the last few years to really improve their communication with consumers, and now I think the rest of the industry is catching up a little bit. William Case President and CEO, American Mortgage Get to Know Industry Executives Beyond the Boardroom

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