Pick your brains- turn the mortgage industry on its head!

August 4, 2006 12:16 PM

Building a mortgage company from the ground up- turn it on its head!

I am in the process of launching a new mortgage brokerage.

I'm looking for some out of the box ideas that can be used to turn the business on its head- doing things totally differently to generate business and word of mouth...

any ideas?

Some thoughts:

* allowing every single customer to rate the company, bank, loan product with feedback (like ebay style)

* "process your own loan" - do it yourself, be your own broker, pick any program and sign up as a rep for our company and turn each customer into a broker for the company- (people love to see ratesheets and understand exactly what is being done and how much the broker is making)

* "see how much we will make on your loan"

* give a small (stock) ownership percentage of the company to people based on amount of referrals and amount of loans/money closed.


what have you wished would be done differently by brokers? where is the business broken? what other ideas or comments on the above do you have?

and yes, before any of them is implemented, the legality will have to be checked. i know that....


looking for some real good ideas!

posted by Izzmeister to work & money (9 comments total)

allowing every single customer to rate the company, bank, loan product with feedback (like ebay style)

Talk to a lawyer about this one if you really want to do it, but I don't think it'll fly. On eBay, the member has signed up and agreed to be rated, has the option to turn off the display of comments about them by others, and has agreed to not hold eBay responsible for the things others say in feedback. (Not to mention that both parties can leave feedback for each other)
posted by winston at 12:28 PM on August 4, 2006

The best way to find the revolutionary ideas that turn a business on it's head is to ask the customers what they want (or what frustrates them about business as usual)
posted by winston at 12:30 PM on August 4, 2006

I'm in the building business, so it would be great if there were comprehensive, clear lists of requirements before, during, and after closing-- before would have credit scores, money down, papers (bank statements, etc.) needed to qualify. During would be a list of everything the borrower needs to secure in order to close-- sometimes a survey, cashier's check, homeowner's insurance, etc-- every little detail that people assume someone else is taking care of. And after-- what do I need to do to maintain my good standing with the mortgage people-- when can I apply to drop PMI, when can I refi without penalty, etc. ALL OF THIS IN PLAIN ENGLISH. Experienced homebuyers might find it simplistic, but for those of us who buy a home every, say, 10 years, it would be great to have a checklist.

Maybe a quick sheet that says what all you'll be signing at closing in nutshell form (this form says you promise to pay your mortgage, this form says you don't have any liens on your current home, and here's what "lien" means, etc.)

A pretty radical idea might be to connect each borrower with someone who just went through the process in the last 6 months or so...? Like a mentor, but less formalized. Sounds kind of dorky outside of my head, but makes the process personalized. I like your idea of making each borrower a broker, or at least the opportunity to be a broker.

Freebies are always good-- deals for teachers, nurses, police officers, etc, the overlooked population who are probably scrimping and saving every last dime. A gift card to Home Depot, a gift certificate for a nice dinner, a housewarming gift delivered to their new house, something like that.

I think the more personal you can make it, the better. Feeling like a number only makes a daunting process more difficult.

Good luck!
posted by orangemiles at 12:50 PM on August 4, 2006

Pulls out a wet blanket...

I am sure you can't publish the rate sheets, you can hand them across the table though. YSP has to be disclosed on the GFE anyway.

GMAC used to have a rating system for their real estate brokers. It disappeared quickly, probably because their biggest producers had lower ratings while the guys who closed a few deals had high ones.

I always thought that if you wanted to turn the industry on its head you would have to introduce a very low, flat, up front, fee so the loan could be purchased like box of cereal. "A 30 year of 150K @6% for $1000 out the door."* Customer: But your closing costs are too high. According to this ad I can get it at 4% and with no closing costs.

*Appraisal not included

Good luck dude.
posted by 517 at 2:03 PM on August 4, 2006

great great stuff!

please, keep it coming.... :)!!!!!
posted by Izzmeister at 2:59 PM on August 4, 2006

The best way to find the revolutionary ideas that turn a business on it's head is to ask the customers what they want

I disagree, that's a good way to make small, evolutionary changes. As Henry Ford supposedly said, 'If I had given my customers what they wanted, I would've built a faster horse'.
posted by jedrek at 2:59 PM on August 4, 2006

I've had a couple of mortgages, and there's never been good clarity. Seems like there should be a checklist ahead of time for all the things that might come up, like flood insurance, or the appraisal being higher for a 2 -family. I'd be happy to work with a company that had few or no gimmicks, but was rock-solid reliable. Surprises at closing, or a lot of running around tying up loose ends at the last minute does not inpsire confidence.

I'm amazed at how much of a pain it is to get rates. Why companies can't put rates on the IVR, or on the web page, is beyond me. I always have to call, leave a message, and maybe get a call back.

good luck!
posted by theora55 at 5:35 PM on August 4, 2006

I second (or third) the simple, bottom-line, up-front quote. I spent literally weeks talking to 7 different institutions to barter my mortgage to get the best deal. If you gave me a simple quote ala 517, you would have earned my business at the end of the first week; it shows you have your business together enough to know exactly where you stand (FYI--I HATE negotiating and haggling).

Also, have, at the very least, a ready list of Appraisers, Surveyors, etc you can recommend.
Better yet set up those appointments for me because I would pay you extra for it.
Best -- Have such required contractors bundled into the Closing costs and be able to list those as line items in the Closing Costs Quote you will send over to me ( I assume that in order to do this, you would need some sort of pre-planned package deal with those home inspectors and title insurers, etc.). If you're my one stop shop, you can email me (in my profile) and when we buy our next house next year I will call you.
posted by iurodivii at 8:37 PM on August 6, 2006

there are certain RESPA problems with that, but I'm working on something great....

thanks! and if anyone else has something to chip in, lemme know!
posted by Izzmeister at 9:54 AM on August 7, 2006