Mortgage Strategies

September 8, 2003

Financial Services Industry Newsletter

Strategies for Success

Mortgage Strategies for 2004

The past few years have been fabulous for the mortgage industry, but it appears that at long last refinance volume has begun its inexorable downward correction. We may miss these hectic and halcyon days when the phone just would not stop ringing.

Our forecast calls for a "soft landing", i.e. interest rates will remain low and volume will trail off more slowly than in previous corrections. That's good news -- there's time to make more thoughtful adjustments. But there is also danger that many will wait too long to make the changes necessary.

What should you be focusing on in 2004? Here are some key issues that should be on your planning agenda.

	Start re-alignment early. We know the industry is changing -- the only question is "how much and how fast". If there is any lesson we've learned from previous industry corrections (not just in the mortgage business), it is that those who begin the process of change early are more likely to be winners. By contrast those who wait until the dust settles, often wait too long. It takes time to get your people re-trained, and to get capacity management tools upgraded. Our advice: start now!
	Retrain your staff, especially your call center. High refi volume has led firms to neglect coordinated strategies for relationship development. When the phone just won't stop ringing, referral development does not get the attention it deserves. Call Centers are at even greater risk, since they have been the greatest beneficiaries of refinance inquiries. Leading mortgage banks are upgrading their relationship sales management and call center training programs.
	Implement capacity planning and optimization tools. We continue to be surprised how many mortgage companies have not installed the sophisticated tools available for capacity optimization. These are particularly effective in the mortgage industry because of the linear nature of application processing. The payoff is there -- typically 500% ROI.

Do you need help identifying and implementing mortgage growth and productivity improvement strategies? Talk to us about call center training, operational improvement assessment, and StaffSmart^®capacity management tools.