MEQUON, Wis. — Mortgagebot, a provider of online mortgage-origination solutions to credit unions and banks here, finished 2007 with record number of clients, market penetration and volume on its Mortgagebot PowerSite solution.
Mortgagebot LLC (www.Mortgagebot.com), said that even as the overall market is down 15% and still reeling from the subprime mortgage meltdown, "same-store" mortgage originations at its clients were up an average of 22%.
"Research into consumer shopping patterns continues to verify that the online mortgage channel has truly 'arrived'," said Scott Happ, Mortgagebot president/CEO. "Interest rates are at near-record lows, and people continue to shop for low mortgage rates. One leading research firm reports that more than 70% of all consumers who shop for mortgage loans begin their search online."
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Happ added that financial institutions, and especially credit unions, are implementing technology at a record pace, meaning they understand how vital it is in 2008 to "meet their borrowers online."
"These lenders realize that the market has changed; and to be competitive, they must wholeheartedly embrace the online mortgage-origination channel."
"Credit unions often implement new technology to be competitive, and the primary business of many savings institutions is mortgage lending–so it's not surprising that we count hundreds of those organizations among our Partners," noted Dan Welbaum, Mortgagebot's chief marketing officer.
"Now that cut-rate brokers have exited the scene, regulated financial institutions like banks, thrifts, and credit unions are finding their place in the sun," said Happ. "Regulated lenders have better fiscal controls, and they typically lend to prime and near-prime borrowers; so they've largely been able to avoid the subprime crisis. And as subprime lenders have disappeared, consumers have turned en masse to trusted, local lenders to meet their home-financing needs."
Mortgagebot offered Bank-Fund Staff Federal Credit Union, headquartered in Washington, D.C. as a good example of the kind of increase in productivity that's possible. The $2.2-billion-asset credit union has used PowerSite products to boost efficiency, provide members with same-day approvals, and reduce the time it takes to complete an error-free mortgage application to less than 20 minutes.
In a recent news release, Bank-Fund Staff FCU reported that its application-to-close "pull-through" rate for mortgages originated via its PowerSite online channel has climbed from 40% to 80%. And a Bank-Fund Staff FCU spokesperson said that the online mortgage channel is not just about completing more loan applications–it's a key part of the organization's commitment to provide outstanding service.
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