Primary marketMortgage Lender Offers House Calls
A retail mortgage originator"s announcement that its consultants will regularly make house calls, is a service many mortgage brokers have offered for years as a strong selling point.
But Jericho, NY-based BLS Funding says it"s taking its house calls service to the next step for customers who prefer face-to-face mortgage consultation services.
"Whether our clients are elderly, busy at work, or just interested in doing business in-person, this new program allows us to service customers in the location that"s most convenient for them," says Matthew Klein, a senior mortgage consultant with the originator.
The need for hand-holding offered by mortgage professionals was highlighted during the advent of online mortgages -- an industry that didn"t grow as fast as originally forecast -- because many consumers, especially first time home buyers, are confused by the mortgage maze.
While many consumers prefer less pressure -- perceived or real -- when they shop for mortgages online, many still feel comfortable eye-balling the loan professional at some point in the transaction.
BLS"s "anywhere" service combines the same kind of convenience enjoyed by shopping online with the touchy-feely hand-holding most consumers also prefer.
"This has been fairly standard operating mode for the service oriented mortgage broker for years. The advent of automated underwriting has made it possible for a savvy loan originator to sit down at a clients home, take the loan application on his or her laptop and get the initial formal credit approval at the customers kitchen table as long as the originator has access to a phone line," said Ginny Ferguson, with CMC Heritage Valley Mortgage, in Pleasanton, CA.
"He or she then collects the requested support documents, a check for the credit and appraisal and heads back to the office to open escrow and order the appraisal. This is fairly quick and streamlined for the consumer," said Ferguson also a vice president of the National Association of Mortgage Brokers.
She said mortgage brokers have increased their share of the market, in part, by offering service where the consumer needs it.
"It"s probably why mortgage brokers have been closing more than two thirds of the loans originated in California every year for the last 10 to 15 years. Direct lenders are just starting to get the idea that service is more than banking hours," she said.
BLS concedes the service is a marketing tool. Combining house calls with origination speeds up the process, closing loans in seven to 10 business days from an initial consultation and application.
"We"re able to close loans quickly and accurately being a direct lender, broker and owning a title company. This leverage, combined with constant improvements to our customer service, such as in-house or in-office consultation, makes it an easy decision for borrowers to do business with us, Klein said.
Many mortgage and real estate professionals still prefer office consultations, however, because of the element of risk.
"When you are out of your office, you must be aware of the surroundings you are walking into. There can be an element of risk. Our loan originators always let someone know what address they are going out to and with whom they are meeting. Just in case there would be a problem," Ferguson said.