Thursday, December 13, 2007

Trendwatch: Better communication required

J.D. Powers has completed a new customer satisfaction study and found that lenders that don't respond quickly to request for information about loan status do a much worse job of pleasing customers. No big news there, but you'll find more about it over on my New Media blog.

For some time now, we've been writing about new technologies for loan status updates. I was writing about Qvault years ago when they put out their status update tool for Calyx Point. Since then, I've seen it built into a lot of other software, including Vuecentric's MortgageDashboard and a quick scan back through this blog will reveal others. If you have one, don't hesitate to pipe up about it in the comments.

The problem seems to be that not every borrower is going to go online to find out where they are in the process. They still need a lot of hand holding. This won't be true for much longer. Right now, my kids do almost everything online and prefer texting on mobile phones to talking to their friends on the phone (a somewhat disturbing trend, IMHO).

In the short term (next 5-10 years at least), lenders that hire someone to get on the phone when the borrower calls will perform better than those that don't, or at least their customer satifsaction ratings will be higher, which will probably be the same thing.

Thursday, December 06, 2007

Media: They are figuring it all out

Sooner or later, those crafty reporters will circle in on the real story. That much you can pretty much count on. You can't hide anything for long in today's modern, media-centric society. It only took these guys a year or so to follow the money back to Wall Street.

In today's International Herald Tribune:
"As the subprime loan crisis deepens, Wall Street firms are increasingly coming under scrutiny for their role in selling risky mortgage-related securities to investors."
I just hope the pendulum doesn't swing too far back in the other direction and our nation's best salesmen start getting pummeled for doing what they were told to do: sell off risk to investors who are either not savvy enough to know better or cocky enough to think they can make a killing and sell off before the bottom falls out.