TechLive - Fintech Solutions to Digital Mortgage

POLLEV.COM/MBAMeeting

TechLive - Fintech Solutions to Digital Mortgage

January 23, 2018

Garth Graham Senior PartnerSTRATMOR Group

Your Logo here


Fintech Solutions to

Digital Mortgage

Moderator:Garth Graham, STRATMOR Group https://www.linkedin.com/in/garthgraham


https://www.linkedin.com/in/garthgraham

POLLEV.COM/MBAMeetingPOLLEV.COM/MBAMeetingReal TIME Polling:

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POLLEV.COM/MBAMeetingToday’s Discussion

4

1. What is driving the Digital Mortgage trend and…

2. Review innovation around Social Media

3. Digital Point of Sale Solutions

4. Mobile Loan Originator Solutions

5. Digital Closing Process

6. eWarehouse

7. LOTS OF TIME FOR QUESTIONS

POLLEV.COM/MBAMeetingDigital Mortgage

Digital Mortgage Defined (STRATMOR)

5

1. The ability to interact with the consumer across all potential

interaction methods (Web, Text, Email, Mobile, Chat and Voice) in

the way they want to interact.

2. The ability to generate data to support the loan file RATHER than

documents (less stare and compare).

E

N

G

A

G

E

T

R

U

S

T

POLLEV.COM/MBAMeetingRising Mortgage Origination Expenses

Production Expense ($/loan)

• Costs continually rising since 2010 with retail over $7,000 per loan

• Sales and Marketing represent over 70% of total production expense, and have increased over $1,700 since 2010

• Production Expense (Direct Expense) is all costs from point-of-sale through closing

• Production technology is system expense to support the origination process (LOS, CRM, Docs, Closing, etc.)

6

3,107 3,178 3,402 3,796 4,254 4,430 4,841 5,083

1,158 1,195 1,4031,733

1,759 1,8361,987 2,086

87 105109

151182

212

204210

0

2500

5000

7500

2010 2011 2012 2013 2014 2015 2016 2017 Fcst

Retail Sales and Marketing Exp - $/Loan

Retail Fulfillment Expense - $/Loan

Production Technology

2010 2011 2012 2013 2014 2015 2016 2017 Fcst

Retail Sales and Marketing Exp - $/Loan 3107 3178 3402 3796 4254 4430 4841 5083

Retail Fulfillment Expense - $/Loan 1158 1195 1403 1733 1759 1836 1987 2086

Production Technology 87 105 109 151 182 212 204 210

Source: PGR: MBA and STRATMOR Peer Group Roundtables

POLLEV.COM/MBAMeetingRetail Mortgage Banking - Trends

• Q2 2017

profitability at 10

bps

• As low as late

2013 / early

2014

• When refi drops,

profits drop too

MBA Quarterly Performance Report

7


Customer Satisfaction is Impacted by Turn Times

8

MortgageSAT - PURCHASE SERVICE LEVELS• STRATMOR surveyed

150,000 closed loan

borrowers in 12 months

• 20% of the time closed in

less than 30 days

• Satisfaction is MUCH

lower when turn times are

> 45 days

• Net Promoter Score (NPS)

drops dramatically – losing

the promoters


Refinance—Customer Satisfaction

9

• Refinance Borrowers do not

want to wait for lower

payments.

• Only 20% of the time does a

refi close in less than 30 days

• Customer satisfaction also

drops at 45 days

• Net Promoter Score (NPS)

drops to 61 or less after 60

days


Technology Investment Has Gone Up!

Source: PGR: MBA and STRATMOR Peer Group Roundtables

• Large banks, who mostly

have custom built

technology solutions,

spend over $1,000 per

loan

• Independent Mortgage

Bankers, and smaller

Bank lenders spend an

average of ~ $250 - $350

per loan


The Obvious Conclusion…

It’s almost

IMPOSSIBLE for a

lender to spend

TOO MUCH money

on Technology if the

ROI is delivered.

11


Digital Mortgage Blueprint

1. Understand the Buyer’s Journey

2. Add new Digital Touchpoints

3. Enable Data Connectivity

4. Gather Rich, Actionable Customer Data

12


https://www.liveslides.com/download


Bob Brandt has more than 20 years of experience leading successful, high-performing sales and marketing teams in the financial services industry.

Bob manages the marketing and strategic alliances departments for Optimal Blue. Prior to Optimal Blue, Bob established and managed the sales and marketing organization at Mortgagebot, a leading technology service provider in the mortgage industry. Under Bob’s direction over the initial 15 years from its founding, Mortgagebotacquired productive, multi-year relationships with more than 1,500 banks and credit unions nationwide and was named to the Inc. 500 list of America’s fastest growing companies.

Bob holds a BBA degree in Finance, Investment, and Banking from the University of Wisconsin – Madison and an MBA degree from Marquette University.

Bob Brandt Vice President

(469) 609-5585

[email protected]

https://www.linkedin.com/in/rjbrandt/

www.optimalblue.com

mailto:[email protected]

https://www.linkedin.com/in/rjbrandt/

http://www.optimalblue.com/

15

The mortgage industry’s digital marketplace

connecting lenders, investors, and providers.

Bob Brandt Vice President

16

• Founded in 2002, a privately-held company with +300 employees dedicated to the mission of

facilitating digital transactions between buyers and sellers of loans.

• Optimal Blue is the most-widely used secondary marketing automation platform in the industry:

+180,000 users +1,800 clients +180 investors

+50% of the Top 500 Lenders

• Optimal Blue touches 1 of 4 mortgages closed each year and delivers significant client results:

+200 million searches +800 million pricing combinations

+$540 billion of rate locks +$60 million of loans committed

• Extensive library of Application Programming Interfaces (APIs) bring real-time, highly accurate

product and pricing to over 30 leading technology solutions across the loan life cycle.

Corporate

Overview

17

The mortgage industry’s

digital marketplace.

Originators | Investors | Providers

18

IntroducingThree New Innovations

1

2

3

MORTGAGE

BANK

19

Business

Intelligence1

Improve

transparency,

eliminate

spreadsheets

Identify trends with intuitive, vivid reporting

solution

Adapt to market change, profitably drive

expansion

Easily understand behaviors behind

your activity

20

Social Media

Compliance2

Social Media…

A Powerful Business

Development Tool

21

Social Media

Compliance

Social Media Execution Risks

Financial

Risks

Regulatory

Risks

Operational

Risks

Reputational

Risks

2

22

DIGITAL MEDIA

Social Media

Compliance2

Manage corporate accounts in a more

secure environment. Team access and

outsourced providers for publishing to

multiple networks.

23

PUBLISHER

Social Media

Compliance2

+ Multi-Platform Sharing

+ Create Content for Distribution

+ Schedule Campaigns

+ Empower Loan Officers

24

COMPLIANCE

SCHEDULER

Social Media

Compliance2

“Optimal Blue is highly automated. The

system does the work. It is such a big

improvement from our previous manual

processes.”

25

REPORTING

Social Media

Compliance2

Built in reporting that is exportable for

management and regulatory review.

Reduce the amount of time spent in

audits.

26

API Partner

Ecosystem3

Optimal Blue API

Real-time product & pricing to any system throughout the

loan life cycle

27

API Partner

Ecosystem3

Dynamically embed real-time

product & pricing on social and print

28

API Partner

Ecosystem3

Ensure pricing accuracy by product, region, branch, or loan officer

29

API Partner

Ecosystem3

30

API Partner

Ecosystem3

31

API Partner

Ecosystem3

32

API Partner

Ecosystem3

Improve point-of-sale

conversion with live

product & pricing

33

API Partner

Ecosystem3

Improve point-of-sale

conversion with live

product & pricing

34

API Partner

Ecosystem3

Embed live Optimal Blue

product & pricing in a robust

mobile experience for loan officers and realtors

35

How can we help you?

Keith Anderson952-412-2295

[email protected]

Jeremy Moreno303-526-8937

[email protected]


Total ResponsesHow many of the pos solutions are you integrated with?

The Optimal Blue Partner Ecosystem includes real-time API integrations with more than 10 POS solutions.

What about 3rd party fees. How should we handle that.

The Optimal Blue API returns all of the product and pricing information for each request made, including the fees that affect the Optimal Blue APR calculation.

Isn't the social media too big brother.

Optimal Blue's social media compliance solution automates the compliance around lender's social media policy, which often include the regulatory requirements around consumer protection. Most often configured to randomly review the public social media posts of a subset of employees, Optimal Blue's social media compliance solution not only helps lenders identify social media activities that can cause financial and reputational risks to lenders and their employees today, but also to identify training opportunities to protect them in the future.

Can LOs decode what's get posted?

Yes, the Optimal Blue API shares the lender's product and pricing specific to each and every loan officer and/or branch. With Optimal Blue, loan officers and the organizations they represent set their pricing specific to all of the adjustments appropriate for each and every scenario including those adjustments specific to each loan officer.

For an IMB - what are the best 2 benefits of the Business Intelligence piece

With Optimal Blue's Business Intelligence solutions, lenders are provided with an enormous amount of transparency about what is happening inside of their business with quoting, locking, and much muchmore. The tool helps them understand trends within their business to make better decisions and pursue opportunities faster. Another important benefit from Optimal Blue's Business Intelligence solutions is the competitive analysis capabilities. With interactive reports, lenders can see how they compare to the overall market by rate, product, FICO, and more - nationwide, by state, or even by each MSA across the country.



https://www.polleverywhere.com/multiple_choice_polls/Phfipi5QyFascU1


SimpleNexus Digital Mortgage Platform

Presented by

Joe Wilson

Chief Marketing Officer

SimpleNexus

POLLEV.COM/MBAMeetingEmpower Your Loan Officers

Providing a BetterBorrower Experience

Partner Better with Realtors

and Increase Your Referral Pipeline

Mobilize Your LO’s with a

Better Tool that Connects All the Essential Functions

Mobile Originator

POLLEV.COM/MBAMeetingEmpower Your Loan Officers

Efficiency

Updates Messaging

Borrower

CRM LOS

AMC

Credit Documents

Loan Officer Pricing

Realtor


Digital Mortgage Platform

A Better Borrower

Experience


A Better Borrower

Experience



• Home Search

• Payment Calculators

• Loan Application

• Loan Status

• Secure Document Upload

A Better Borrower

Experience



A Better Tool for your LOs

• View Pipeline

• Pull Credit

• Run Pricing

• Asset Verification

• Pre-Qualification Letters

Partnering Better with

Realtors

A Better Borrower Experience



A Better Tool for your LOs Partnering Better with

Realtors

A Better Borrower Experience


POLLEV.COM/MBAMeetingDoes this integrate with any Los systems ?Yes - We have bi-directional integrations with the major LOS systems. That will remain your system of record and where your operations team will continue to work from. There is absoloutely no manual duplication of data.

What's the difference between native and web? What more can you do with app?

SimpleNexus offers both Native and Web functionality. The benefit to the Native app is the ability to co-brand with your Realtors, offers additional security for document uploads and viewing sensitive borrower data. Through the native, white-labeled app, you also receive higher engagement and more regular usage than a web site.

Do you have Realtor version?

Yes - Each LO can have unlimited number of co-branded Realtor apps and websites. This allows the Realtors to be engaged through the entire loan lifecycle, include their contact info, listings, customer reviews, etc… They are also automatically kept up to date through the loan process.

How much does it cost?Our costs are based on a per-user basis and sold at an enterprise level to each company. Each situation is unique and depending on the integrations, the costs can vary. Please contact us for a specific quote.

Can an LO buy it or only a lending company? We license SimpleNexus directly to mortgage lenders, banks and credit unions.

Does Simple Nexus interface will all existing LOS'?We have bi-directional integrations with Ellie Mae Encompass, Byte, PCLender, Calyx Point and LendingQB. We do have companies that use Mortgagebot, Mortgage Candence and several others on a semi-automated integration.

Are most of your clients banks or independents? Most of our clients are Independent Mortgage Bankers.Anything for servicing.? Not today.

How is credit secure if LO loses phone?

We have employed multi-factor authenitcation to securely order and view credit reports. Experian, Equifax and TransUnion have each approved SimpleNexus to allow this functionality. Additionally, companies manage access, so if an LO loses their phone, an admin can revoke all access immediately.

Does simple nexus have other pricing engine relations besides the one with optimal blue? Today we only offer pricing integration through Optimal Blue. Ability to run AUS? We are working on AUS integrations currently with Fannie Mae and Freddie Mac for the upcoming quarters.If we have a specific panel in Mercury could system select from our panel?

Our AMC integrations are direct to the software that is used by your AMC (for instnace, Mercury). The integration automatically sends the status updates and documents directly to the LO.

Are status updates being pushed to the borrower on their devices?

Yes - statuses are sent directly to the Borrower (LO and Realtors, too) via a push notification (text, or e-mail, too). Lenders get to decide exactly which statuses are pushed and are real-time as the data changes in the LOS.

Does it interface with the different LOS applications?We have bi-directional integrations with Ellie Mae Encompass, Byte, PCLender, Calyx Point and LendingQB. We do have companies that use Mortgagebot, Mortgage Candence and several others on a semi-automated integration.

4506 integration? We do not have any 4506-T integrations today. That is ordered via the LOS.

Asset and income integrations?SimpleNexus is integrated directly with FormFree AccountChek product to offer automated asset verification (which will also soon offer Income and Employement verification)

Is there a way to have a companies fees integrated so an APR can be calculated with Mobil app? Yes, this is configurable by lender.

Are you day 1 certainWe offer an integration with FormFree for the asset verification. Employment verification is run through the LOS to complete Day 1.



https://www.polleverywhere.com/multiple_choice_polls/Nvj5i8ENZSlibmS


You spoke last year also- what are the 3 largest changes/improvements Blend has developed over last year

a. Data-driven Mortgage Intelligence®: Blend Mortgage Intelligence goes beyond automation with next generation technology, allowing a lender to personalize the borrower experience and conditions based on 6 critical decision sources - lender configurations, credit report info, data from the product and pricing engine, automated underwriting systems (DU runs), data analytics, and investor guidelines. The days of static “app packs” are over!b. Lender Workflow(s) and Tools: Blend’s empowering and engaging borrower experience delivers some of the industry’s leading performance metrics (i.e., NPS, connectivity, pull-through, etc) and now this focus has been applied to the platform’s most important users - the loan team member. With workflows and experiences to support major point of sale workflows like efficient data entry, product and price candidacy, and borrower support the Blend Lender experience empowers the loan team member to provide the experience of their aspiration. Whether a loan team member seeks to grow their business or sustain with greater efficiency, Blend will be their ally. c. Built out Customer Success Teams: We’re proud of the platform we’ve built however we are humble enough to recognize that even great technology absent other ingredients can fail. Over the past year, Blend has built out world-class teams dedicated tobeing a catalyst for customer success. Whether it’s deployment, help and support, marketing, or training and utilization ourdedicated account managers have the talent and expertise needed to support a customer at any stage of their lifecycle.

Do you have a mobile app?

. Yes, our borrower application is built mobile-first in responsive HTML 5 for a great experience on any device. Additionally, we have a purpose-built mobile app for our lender users offering them direct access to the insights and capabilities they need to drive their business.

Can I embed the app into my website? . Yes, the Blend application can be woven seamlessly into a lender’s existing marketing and technology stack.

Big independents customers or mostly banks?. Blend has an almost equal mixture of lending institution (i.e., bank, credit union, and non-bank), go-to-market channels (i.e., call

center, retail, consumer direct), and coverage throughout all 50 states.

Are you D1C certified?

We're in Pilot with Fannie Mae and expect to be certified in a matter of days or weeks. As a Day 1 Certainty approved vendor,Blend will offer these benefits seamlessly integrated into the consumer experience – no additional borrower or lender actions required. This leads to borrowers choosing to connect to their financial accounts, making more of your portfolio eligible for Day 1 Certainty, delivering business efficiency and reducing funding times.

Do you have diaclosurs?

. Blend’s disclosures support depends on a lender’s LOS and/or document generation provider. Thanks to our Encompass® Partnership, we have a lenders piloting disclosures in production today. Later this quarter, these pilots will yield a tested, hardened, and document template rich platform to rapidly expand lender coverage to all of our partners whose business relies on the Encompass® LOS partners. Where LOS integrations for disclosures are not feasible we will integrate directly with their document generation providers.


Can someone pay upfront fee and schedule appraisal ?

. Blend’s disclosures support depends on a lender’s LOS and/or document generation provider. Thanks to our Encompass® Partnership, we have a lenders piloting disclosures in production today. Later this quarter, these pilots will yield a tested, hardened, and document template rich platform to rapidly expand lender coverage to all of our partners whose business relies on the Encompass® LOS partners. Where LOS integrations for disclosures are not feasible we will integrate directly with their document generation providers.

What benefits have been generated? Like more apps or faster pull through or what?

. Blend is helping our customers grow their business, operate more efficiently, and realize ROI from their new and existing technology investments. The benefits realized depend on a variety of lender factors but below is illustrative to what a new lending partner could achieve.i. NPS of 60+ to activate borrower referralsii. At least 50% less touches to satisfy conditions for greater efficiency through fundingiii. Reduction in funding cycles by 7-10 days for less committed capital and rate exposureiv. Immediate and ongoing ROI through flexible and extensible platform

How do companies brand themselves on the platform.

. The Blend design and marketing teams work closely with each of our lending partners to ensure that their brand is expressedthroughout the experience - beyond just the technology experience. These valuable insights, inspiration, and examples are pulled from our size (60+ customers and hundreds of thousands of interactions) positioning lenders of all shapes and sizes to achieve their marketing aspirations

Status updates?

. Today, the Blend platform provides borrower and lender notifications based on activities (that remain or have recently beencompleted). In Q1 we will expand this framework to include loan status based notifications to borrowers, lenders, and real estate agent. And throughout 2018 we will add additional status notification options in the form of additional channels and trustedparticipants.

How are you working with movement mortgage?

Movement Mortgage is an incredible lending partner. Their loan officers are originating directly via Blend as well as inviting their borrowers via Blend to complete their own applications and connect directly to needed data and documentation. Their mission and opportunities inspire and challenge. They have been, and continue to be, an educator and catalyst for Blend to strive to be better.

Is this approved by state of New York. . Blend is supporting many lenders who originate in the state of New York. Do you integrate with doc requests from the LOS?

. Yes, we integrate directly with document APIs available by major LOS providers. Where direct integration is not supported, we will explore other avenues available such as middleware.

Who are your biggest client now. Wells Fargo and US Bank are our two largest, but we also work with many non-bank lenders, smaller community banks, and

credit unions.I've heard you're working on integrating with Total Expert. It will be awesome to have your information integrated with my CRM.

Blend is interested in integrating with all best of breed providers relevant to lenders. Today, we integrate with multiple CRM providers including Total Expert. With our bidirectional information flow, Blend and your CRM share a single view of the data driving your business.



https://www.polleverywhere.com/multiple_choice_polls/wOkMlsxLbUZ1nqH




https://www.polleverywhere.com/multiple_choice_polls/f2RZSLbRyPVjMv7


Collaboration and Post Closing

January 23, 2018

Presented by

Jamie Williamson

VP Sales

[email protected]

https://simplifile.com/


Simplifile

• Proven and Trusted

• eRecording – electronic recording of documents for agents and counties

• 17 years and over 17,000 settlement companies and 1,700 counties

• 15Mil+ transactions annually

• 3 Additional Solutions for Lenders

• Pre Close Collaboration for documents and fees. Easily make changes,

respond to updates, and manage deficiencies on specific documents or fees

• Post Close electronic automated return of recorded documents, final fees, final

title, executed closing package, etc.

• eMortgage – working with partners to connect lenders and agents for hybrid,

full eSign including eNotes, and Post Close


Are you Encompass integrated? Yes. Encompass has built a tight integration

How do you get agents to use the platform. They seem to revert to regular process on purchase. You the lender has to demand it and we support the rollout, training, and follow up

What do you do if the uldd or UCD isn't filled out completely? The data would have to be entered manually when avaiable

If docs are e-recorded is there a cost or fee savings to the consumer? In some states yes. But for the most part no.



eWarehouse

January 23, 2018

Presented by

Tim M. Anderson

Director eServices & Strategy

DocMagic, Inc.




Connect with Me

GARTH GRAHAM

STRATMOR GROUP.COM

www.linkedin.com/in/garthgraham/

http://www.stratmorgroup.com/stratmor-

insights/

https://twitter.com/garthgraham

(954) 325-7816

60

http://www.linkedin.com/in/garthgraham/

http://www.stratmorgroup.com/stratmor-insights/

https://twitter.com/garthgraham