How important is communication for them and other borrowers? Recent research by J.D. Powers with borrowers who indicated at least one problem with their mortgage loan origination revealed that 36% said the process took too long – the top answer. But 36% also cited a lack of communication.

Have you ever encountered a communications gap with a borrower? By that I mean, have any of your borrowers had to contact your credit union to find out what was going on with their loan? They shouldn't have to.

The fact is, the quicker and more often you communicate with the borrower – throughout the loan process – the better marks you will receive from them, including better word-of-mouth, testimonials, referrals, etc.

Moreover, research also shows that effective communication can be even more important than the length of the loan cycle. In another J.D Power study, overall borrower satisfaction with the loan cycle did not decline even after 60 days when the time frame was provided and met, and proactive updates (i.e., communications) were provided.

So what can you do to improve communications with borrowers throughout the loan process?

• Promote your loans – on your website, with your member mailings, through the media (radio, TV, news publications) and with social media.
• Make sure your members and prospective members know about your full array of loan programs, such as FHA, FHLB, USDA and VA loans, etc., and how they can qualify for them.
• Ensure your mortgage applications can capture information that helps you decide which loan best fits with a potential borrower. That means your employees must understand how each loan works and can communicate to borrowers which loans are a good fit.
• Tell the borrower what they are responsible for – and how they must share in the "sense of urgency" to complete the process. For example, they must produce requested documents in a timely manner. One idea is to provide a checklist, tailored to their loan.
• Set a reasonable turnaround time for each step of the loan process, and then deliver on it. For example, promise a decision on an application in X days.
• Identify "milestones" throughout the loan process and communicate the loan status at each of these points. If there is a glitch or delay, communicate that, too. That means you need to set a length of time at which you must communicate – even if the update is that there is nothing new to report.
• Perhaps most importantly, define staff responsibility for each communication – the originator, the underwriter, the MLO – whoever it may be on your staff.

If you succeed at communicating, you will improve your overall mortgage loan program and increase your opportunities to attract a bigger share of business.

Bob Dorsa is the President of ACUMA. He can be reached at 877-442-2862 or [email protected].