November 18, 2004
Let me tell you about TAVMA folks. They put on a great conference. The National Bundled Services Symposium ended a few minutes ago with an address by Washington Post columnist and feature writer Jeffrey H. Birnbaum. He is the author of a number of books, including The Lobbyists, a Washington Post best seller. He talked to the organization about how things worked on Capitol Hill (and how it was like covering the Miami crime scene) and how important lobbying is to a group like the vendor management companies and settlement services providers that were in the audience.
He also said that President Bush is likely to fulfill some of his campaign promises over the next year or two, or at least try. This is in spite of the fact that most second term president perform poorly, he said. These include reworking Social Security, which Birnbaum says could shape up within the next couple of years, and tax reform. But one thing he says Bush won't do is kill the mortgage interest deduction, which left attendees breathing easier.
Prior to Birnbaum, I hosted a panel of technology vendors including Chris Kennedy from Ocwen Financial, Mike Mitchell from FNC, Christopher Behning from General American Corp., and Bob Anastasi from Zenodata. It was a lively discussion with some good questions from the audience. You'll read more about that on the site tomorrow.
I'll be back in the office tomorrow, so if any of you who could not make it to the show have any specific questions, please respond to this blog and I'll tell you what I can then. Now, it's off to the airport to be submitted to the standard TSA security protocols.
November 18, 2004 : Live from TAVMA
Great symposium. Really lively panels with more audience interaction than I've seen at a show in a long time. These folks (title agents, other settlement services folks and VMCs) are really into doing what it takes to understand bundled services and make more money.
My panel is later today. I'll update you after that.
November 17, 2004
This is a great time to be selling stuff to mortgage lenders, especially technology. The MBA says that lenders will be spending more on technology in 2005. Volumes are expected to be strong (see next week's issue of RETI for details), so they'll have some money to spend, without being refi-boom crazy. But that doesn't mean that lenders are going to act like it's the day after Thanksgiving and the Mall is opening early.
In fact, a recent survey by October Research Corp., and I may have mentioned this in this space, indicates that the biggest technology-related fear lenders have now is not about the cost or the implementation. It's about choosing the wrong technology.
Lenders are going to be looking for solid information that tells them why one particular platform, product or service is better than another. The vendors that are going to succeed are going to have to be prepared to provide that.
A case in point is in today's news. Lots of companies have thrown up some consumer-facing content on the Web and called it good customer service. Even the GSEs have done that. But Informative Research, a Garden City, Calif.-based consumer credit information provider, took it a step further. They developed a program and started taking it out to originators to teach them how to use the Web content to close more loans.
I asked Sarah Ross, director of communications and marketing for Informative Research, how the program was being received.
"We've been marketing the site to brokers. Because it is a privately branded site that does not 'sell' Informative Research, we've had a lot of interest generated from it," Ross said. "The responses I received from brokers at the [Orange County chapter of CAMB] show was very positive. They liked that they can send their borrowers to mymortgagecredit.com to give them information that they are accustomed to handling in phone call after phone call after phone call."
This is a solid tactic, but nothing new. What impressed me is what she told me next.
Ross said, "One broker told me yesterday that she thinks this will save her a lot of time that she could be spending in actually finishing the details to close the loan."
In academia, professors smile inwardly when their students repeat back the lesson material. It's a sign that actual learning has taken place. In this case, IR taught this originator that it could be a valuable part of her business. Whether borrowers will actually turn to the site instead of bugging their loan officer is still a question, but it's not a relevant question here. This broker is already a buyer.
That's exactly what it will take to sell technology next year. Lenders won't always be buying from the lowest bidder. Neither will they be checking off a list of promises. They will be much more careful than that. Everyone witnessed what happened to Bank of America when it gambled on FrameWork (the bank will close that technology firm down by year's end, it says). Many will learn from that lesson. Lenders will be buying from people who can educate them effectively to the tangible benefits they will receive from a relationship. Do you know how to do that most effectively? If not, watch RETI for an upcoming story that will help.
November 15, 2004
The National Association of Realtors has thrown wide its doors and welcomed the additional government scrutiny that is being visited upon it at the order of Rep. Oxley (R-OH). But the questions the GAO raises are not likely to be the ones that will end up causing NAR problems in the future. At least that's one industry expert's opinion. Read more about that in our NAR Conference coverage.
Lotstein Buckman has upgraded its online compliance tool, iComply. I've seen a demo and was very impressed with this. The fact that the law firm specializes in the mortgage industry helps make the product what it is.
I'm gearing up for my trip to Orlando later this week. The Title/Appraisal Vendor Management Association (TAVMA) will be having a bundled services conference down there and I'll be covering it and moderating a panel or two. I'm looking forward to it because I'll be working the conference with my boss, Joe Casa.
Casa was the founding president of TAVMA, I'm told. I'm looking forward to meeting a lot of people. If you're going to be there, drop me a line. I would love to find out more about your business and what you'd like to see in future issues of RETI.
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