I Can't Believe They Did That

We’ve discussed previously that technology should be seen as investment. However, because some businesses aren’t sure how to evaluate and strategically select a technology, many simply look at the price tag. The cheapest option is the best option, right? With the amount of change coming to this industry, your business needs a technology that has the ability to customize to you, and scale to any situation depending on circumstances, and evolve to continue to serve you and meet your needs in the future.

In this episode of Mark’s Minutes, Mark explains why he is concerned when potential customers make decisions based solely on price. He guides you through what expectations you should have for technology and reveals his warning and suggestion on how to evaluate its full long term value, instead of the short term costs.

Extended Benefits Beyond the Closing

There are a variety of tech companies out there that can each provide different benefits pre-closing and some throughout the closing process. However, what value can they add for both you and the consumer after the closing is complete? Are there long term benefits to using their platform? We’ve previously talked about how keeping consumers engaged post-closing can be useful for your business and continue your relationship with the consumer for future marketing purposes. But how can we keep these consumers engaged? Provide them with added benefits and value.  

In this episode of Mark’s Minutes, Mark explains what makes Pavaso different in the value it provides before, during and after the closing for not just your business, but the consumer as well. Mark describes a few of Pavaso’s current solutions created to continue engagement with consumers beyond the closing and throughout their homeownership lifecycle.

My Personal Closing Experience

As we’ve talked before on the issue of closings within the real estate industry and how to best deal with them, the process of buying a home still sucks for a consumer. The papers, the legal jargon, the waiting, and the confusion all lead to dissatisfaction and frustration for the consumer. Does this experience for the consumer impact your business in any way? You’ve been doing it the same for years and no one’s complaints seem to change anything. However, now with the CFPB on the lookout for non-compliance and the availability of a consumer complaint portal, your reputation may now be at risk.

In this episode of Mark’s Minutes, Mark briefly describes his personal experience on his recent home closing, and why consumers are upset. He then continues to walk you through the ideal home closing for a consumer, which can be offered by your business today. Pavaso’s solutions protect your business’ reputation and offer consumers a world class experience that allows you to stand out beyond your competitors.

Not All Tech Companies Are Created Equal

With technology flooding almost every industry, the time to incorporate it into your business model is now. So where do you start? Begin by seeing what companies are out there with the technology you need and evaluate them on levels of stability and capability. However, throughout this search process, with new tech companies popping up all the time, it can be hard to differentiate from the outside which tech companies are stable and which are full of pitfalls.

In this episode of Mark’s Minutes, Mark describes the three key qualities you should require of any company whose technology you’re interested in using. With his 30+ years of experience, he also walks you through how to distinguish a stable and proficient tech company from those who can’t provide your business the capability that it needs.

Evolving Mortgage Backed Securities

Investors are an essential part of the mortgage industry, specifically their involvement with residential and commercial mortgage backed securities. Wall Street lost around $2.5 trillion worth of mortgage backed securities in 2008 with the mortgage crisis, and although the housing market has since bounced back, investors just don’t have a secure place to put their money. So how do we bring Wall Street back into the mortgage industry and create a solid foundation for reestablished mortgage backed securities?

In this episode of Mark’s Minutes, Mark reveals Pavaso’s vision for the evolution of mortgage backed securities, and how Pavaso’s mortgage scoring system fits into this future of mortgage investing. He also explains the various ways the industry can bring private money back into the mortgage industry by reinventing the mortgage backed securities model.

Fixing the TRID Challenges That the Industry Got Wrong

Long before TRID’s implementation in October, analysts and professionals were forecasting the various effects its changes could have on the industry and each stakeholder in the transaction. Of course we can evaluate the clear changes of the new Loan Estimate and Closing Disclosure forms, but is that all that TRID encompasses? What other changes are in store for businesses?

In a white paper released in early Q3, we broke down the challenges everyone was soon to face, and the new Loan Estimate and Closing Disclosure forms only accounted for about 20% of them. Naturally, the industry chose to focus on meeting the tangible requirements of the LE and CD first. We knew that the new forms were going to be a major focus, but because we looked at TRID with a different perspective, we understood that was only a small part of what the CFPB is trying to accomplish. There was much more that had to change. Although businesses have had a few months to incorporate new systems, tools and training for the LE and CD, the industry is still in chaos figuring out what else they have to do to be compliant. So the question then becomes, how do I establish and show this ‘good faith effort’? That’s where the other 80% of TRID comes in. This includes improving the entire transaction by incorporating consumer participation and education, collaborating with title companies for the closing, and partnering with real estate agents.

To build a proper platform for consumer participation, we first need to reevaluate the way the Loan Estimate and Closing Disclosure forms were implemented. The first LE is never going to be correct, it’s an estimate. So don’t over focus on extreme details when the estimate will change after title evaluates the deal anyways. And for the CD, that’s right in the ballpark of what title did with the HUD. Let title take the lead on completing that, and you can approve everything before it’s sent out. With the LE and CD issues resolved, how do we refocus the industry to involve the consumer more and collaborate with all the other stakeholders? Lenders, don’t hesitate to talk to the title companies. For efficiency and accuracy with the LE and CD, constant communication with them is required. To give consumers the experience they deserve, involve them and their real estate agents throughout the transaction, and allow them to participate by providing education throughout the process. By partnering with title and real estate agents, you can consolidate communication to one place while presenting a united confusion-free front to the consumer.

With the entire transaction process an issue, instead of spending your time and resources on systems that offer small spot solutions, focus on evolving your organization to fit the requirements of the new post-TRID world. Not even technology can fix the archaic business model of home buying today. The first to meet these needs will succeed, and those who don’t will surely be passed by.

We dive into more detail on how to address these challenges and get set on a clearer path to overcoming them in a recent white paper that is available for download here.

The white paper addressing pre-TRID predictions from September is also available for download here.

Limited Power of Attorney Approach

With consumers busier than ever and the need to keep up with everyday hectic life, home closings using limited power of attorney can be a useful capability for some consumers. The overall benefit to limited power of attorney is to no longer require the consumer to be present at the closing to sign documents. However, with technology making it easier to close on a home than ever before, this capability may not hold as much value as it once did.

In this episode of Mark’s Minutes, Mark describes how technology is evolving to meet the consumer and specifically how that is changing the need for limited power of attorney in the home buying process. He also explains why, although Pavaso contains the ability, he thinks it is a huge concern for businesses to require limited power of attorney capabilities from technology platforms.