Automation & Technology
How Technology Improved Profitability for Right By You Mortgage
Author: Eileen Linn, Sr. Customer Marketing and Advocacy Manager, Ellie Mae
Are you delivering an experience that creates customers for life? At Fidelity Bank, they take it a step further to build customer relationships that not only span lifetimes – but generations. For more than 100 years, their vision has been to be an independent, sound, and profitable bank that businesses and families come to first and bank with for life. And in 2017, they decided to make a change in order to grow their loan volume and continue to deliver the best possible experience for their customers.
In the past, Fidelity Bank operated as a mortgage broker, taking loan applications and processing loans, but the disclosures, underwriting, closing, and funding were all done by investors. Because of this, their average time to close a loan was 45 days, instead of the standard 30 days that the purchase market was demanding. So, they decided to take more control over their process and drive efficiencies by moving from operating as a mortgage broker to becoming a full lender.
On their journey to becoming a lender, Fidelity Bank identified three major initiatives they needed to address.
- Finding the right team to build their new loan process
With their goal to have 80% of their loans purchased with only one touch from investors, a quality team would be instrumental. And they built their new mortgage business’ foundation with a lean, efficient, and talented team that would differentiate them from the competition as they entered the Secondary Market for the first time.
2. Implementing a new Loan Origination System
As a lender, they needed a Loan Origination System that would help them manage their new loan process. With that in mind, their new system would need to allow them to:
- Manage their pipeline and loan process efficiently
- Create an interactive customer-facing web application to link within their website
- Seamlessly integrate with third party vendors including: credit, compliance, pricing, appraisal, mortgage insurance, and more
- Customize the system to grow and scale with them
- Be able to source talent with system experience to minimize training
After examining multiple options, they decided that Encompass® by Ellie Mae® was the best fit leveraging Encompass Doc Solutions™, Mavent Compliance Service™, Encompass Electronic Document Management™, and Encompass Consumer Connect®. Fidelity Bank then began working with their Ellie Mae implementation consultant and doc specialist to walk through each step to set up their system and tailor it for their unique process.
3. Building their new brand
To launch as a lender in a unique way, this new brand needed to capture Fidelity Bank’s culture and speak to their customer base. After much research and discussion, they chose to name their new Mortgage Division “Right By You Mortgage”. This name ties back to their vision of always doing the right thing for their customers. Everything they do starts and ends with their customers and serving them in the best way possible.
Fidelity Bank officially launched their Right By You Mortgage Division in July 2018 and has seen incredible results. Since their launch, they have:
- Reduced their overall average time to close from 45 days to as few as 15 days in some cases - A 30-day closing is no longer even questioned by their team
- Delivered an average 7 days between ‘Clear to Close’ and ‘Closing’ milestones
- Sold 85% of their loans with only one touch from investors
- Increased loan volume by 9% year over year
- Improved margins and overall profitability by 125 bps on average
With the launch of Right By You Mortgage, Fidelity Bank has now built a foundation of efficiency and quality that has put them on the path for continued growth in the future.