[andrew.castillo@nibbio.co]

Hi LO community!

I am a software engineer experienced in building software automations for the mortgage industry. I have worked with a couple LOs to help free up a lot of time but I am just curious in having conversations in the broader community surrounding pain points you guys have as LOs. I know the importance of going out and continuing to build your brand and network which I know is super important to your success but also know there is an aspect of redundant repetitive work required as part of being an LO. What would be your ideal work day? What do you wish you did not have to do? I would love to chat!

[Dustin Owen]

In general, LO’s need to be out making sales calls (aka building relationships with other professionals in the market who can refer them clients who need home loans), texting prospective referrals sources and marketing to their database. They need to be hosting events, branding themselves and educating their communities. Anything that helps them do more of this is a benefit. LO’s need to know their loan products and underwriting guidelines. They need to offer financial advice to prospective homebuyers as it pertains to credit, budgeting, saving money and how it is important for a consumer to choose the right loan for their financial needs, wants and goals. The processing of the paperwork and chasing down of documents can be left for others to do. Especially if the LO generates enough leads and talks to enough prospective clients. Companies like Finicity, FinLocker, Mortgage Coach, LoanBeam, SimpleNexus etc offer all sorts of technology to “try” to make the documentation collection and processing of paperwork “easier”. They all struggle with adoption.

[andrew.castillo@nibbio.co]

I appreciate the response! Honestly, just recently discovering the importance of personal brand too, so this follows in line with my assumption. I struggle when it comes to brand on whether to automate for volume or not because obviously, the quality of your leads increases provided you are as personable, authentic, transparent etc. It would be great to have both, especially through the advancements in conversational AI. As for the paper-pushing type tasks, why do you think all these companies/technologies struggle with adoption, is it just so easily delegated to other ppl? Or would you rather have increased quality and quantity of lead generation at scale through automation as mentioned? Would be willing to do a call or a podcast on this if you were interested. I am trying to keep my answers short here lol.

[Dustin Owen]

Technology adoption is difficult for many reasons. You have those that don’t feel like they need it therefore they ask, “why change”. There are dozens of moving parts to take a loan from lead to funding and massive amounts of compliance so hang-ups happen when one technology does not integrate with the other 5-6 technologies or when one technology or technology vendor opens up a lender to scrutiny from one of the various regulators. Mortgage borrowers push back as they do not want to use the technology. There’s three…

It sounds like the bulk of your question encompasses lead generation or technology needed for lead generation. Again, there is tons of technology currently being used in lead generation. There is Zillow, BankRate, Rocket, Home Lending Pal etc. All are using conversational AI. They all have their business models and technologies needed to generate their leads. I have little to no professional or personal experience with generating consumer direct leads. It’s not my thing. The leads I generate and the leads the bulk of the professionals I coach generate come from the referrals of: other professionals, current clients, past clients, circle of influence etc. We practice and teach how to be the local community expert. We practice and teach how to run a business that is “by referral only”.

I hope all this helps.

[andrew.castillo@nibbio.co]

Ah no, I was speaking more to brand as it relates to me personally. But the automations I implement are actually technology agnostic because I am automating through not only pre-built integrations but API, AI, and, UI (which makes it agnostic). It would interact with whatever technology you want through clicks, typing, copy paste etc. simulating human interaction with the application(s). These automations are rule-based too though, so I would even welcome the regulation because it defines the rules needed to be followed by an automation. As far as regulatory issues, it would be extremely hard to discern between a human intervention and automated code given you use the UI because no logs provided by an LOS will be able to identify it was completed by human or robot (unless explicitly designed) unlike consent-based integrations. For your reference, I automate using Robotic Process Automation(RPA) which is confusing in name because there is no physical robot, simply high-level software. RPA processes can run 24/365 and are highly scalable at low cost.

The need I am trying to fill would be precisely with people like you and the people you coach, because in the end, I know (whether its delegated to someone else or not) a human is generating Initial/Final Disclosures. It does not take, human creativity or empathy to do a title service order or a flood service order. You guys are needed to interact, re-assure, support buyers and network for new clients which all takes time. My company has automated for one of the largest home-builders but we built a product to be more accessible to smaller companies. I am looking for the right people in my network willing to critique and vet the product to provide not just another product but one that actually provides value!

Thank you for investing your time in responding!

[Dustin Owen]

Ok. That makes sense. So you’ll want to network with those in Operations and not Sales. Think COO’s of mortgage companies or VP’s of Operations. Have you looked into becoming a member of The Mortgage Collaborative or Lenders One. Both have the people you are looking to network with as members.

[andrew.castillo@nibbio.co]

Thanks! I actually have not heard of these before, so I will definitely look into them.

Given that I am talking to you Dustin, a highly-experienced individual in the mortgage space who I am sure talks to a few COOs and VP of Ops, do you think it would intriguing to them? Is it to you at all? Or does your opinion go back to adoption issues? I am going for a Godfather-esque product offer, AKA “…one [you/COO/VP] can’t refuse” lol.

I am also curious, on Episode 306, you referenced that article with Wells Fargo practically cutting mortgage buying at this time. Part of me would think the other end of that stick is reduced labor(as a result of less MSRs) or at least desire for cheaper labor. How do you think a large bank like Wells Fargo deals with that vs. smaller Mortgage companies? From what I have noticed, it seems the “network” of smaller mortgage companies are A LOT more loyal, which may result in reduced desire for technology supplemented labor.

[Dustin Owen]

Personally, technology does little to excite me. I am in the boat of being a fast-follower. Meaning, let someone else develop the tech, invest all the $ and time, beta-test, provide feedback, work out bugs etc. and then once there is a proof of concept I will move swiftly to adopt once I am confident the technology is a benefit.

I can say this…MANY companies have spent the past 2 decades trying to help the mortgage industry streamline their processes, consume less human capital, manufacture mortgages quicker and cheaper. MOST of those companies have failed. Those that have succeeded still have not convinced the industry that the industry is “better” in terms of time and costs. In order for one mortgage to be manufactured, it requires over 30 other counterparties to participate. (Employers, Realtors, Title Companies, Appraisers, IRS, other financial institutions, credit reporting agencies, home owner’s insurance, mortgage insurance, multiple borrowers, sellers, warehouse lenders, multiple regulators, investors, servicing companies, attorneys etc. etc.) No one mortgage transaction is alike.

My best piece of advise to anyone in the tech world…Go out and personal generate 100 leads. Convert those 100 leads into 40 mortgage Pre-Approvals. Convert those 40 Pre-Approvals into 20 closings and you’ll have the data you need from an LO’s POV.

Then, go and process 50 loans as a Mortgage Processor. Once you do this you’ll have the data you need from the Processors POV.

Next, work as a Mortgage Closer and send out closing packages on 100 files.

After learning about what it takes to actually take a loan from fully approved to funded go work with a Mortgage Underwriter next for about a month. (Job Shadow)

After loans fund they need to be shipped…Working in a Shipping Department for a month.

I hope this helps.

Unfortunately, this is all the time I have for this thread. My office number is 407-645-6363. Feel free to call me if you’d like. I can take an additional 15 minutes over the phone to answer any follow-up you may have.

[andrew.castillo@nibbio.co]

I appreciate your time replying to this thread Dustin! This has definitely been insightful!

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