To: Professor Erika Paterson
From: Agron Bajraktari
Date: February 15, 2021
Subject: Proposal to introduce digital document filing system to the Mortgage Brokerage.
Audience
The intended audience or reader of this report is the managing broker of the mortgage brokerage. The managing broker has the authority to change and implement new systems.
Introduction
I work in the real estate field as a consultant to developers and as a mortgage broker. Working as a mortgage broker I collected and sorted many of my client’s documentation. For one mortgage we require the client to fax or pdf via email about 12 to 15 documents comprising of multiple pages. This brokerage has more than 25 brokers currently working for them in the residential mortgage space.
Statement of the Problem
Many of the brokers deals are time sensitive. We work in a market that requires mortgage to get fully approved within 5 days. The lender takes at least 48-72 hours just to review the package. Sometimes the broker takes 48 hours to organize the package and paperwork. All that together cause the most mortgage deals to come down to the wire. This increases the stress for the client and the realtors. If the deal doesn’t close at the lender, we need to request an extension costing the client more money and many costings them their deal.
Proposed Solution
The brokerage needs to implement digital technology that allows clients to directly upload the need and correct documents to their database eliminating friction of delayed or pushed back deadlines. This will improve the closing ratio of the brokerages and increase the revenues due to higher number of closed mortgages. We have seen the success of banks implementing digital document management and allowing clients to upload and complete mortgage paperwork from their phones, tablet and/or laptops. Software currently exists to fix this bottleneck.
Scope
To ensure that implementing the digital documentation and mortgage applications process is a success the following will be analyzed:
- The ability for clients to use the system on their phones, tablets, and computers.
- The client’s comfort with uploading sensitive documents over the web.
- The potential problems with software and the coding of said software.
- The potential increase in productivity for the brokerage
- The decrease in friction and stress for the client and realtors
- The cost of fully integrating this system and software and future cost.
Methods
The primary sources of information will be collected from surveying current clients about their experience with the current process and what they would think about the new process. We will also contact other brokerages that have had success and survey the brokers there about their experiences with the old and current system they use. We may also interview tech experts about the system itself and its drawbacks.
My Qualifications
I have worked as a mortgage broker for 5 years and I have had plenty of experience with clients. I have taken courses at CMBABC and have my designated individuals’ licensee and my MBI as well, both from CMBABC. I have also gotten my certificate in HTML and CSS coding while having extensive experience in python coding language.
Conclusion
The closing rates of the brokerage are at the average. The biggest drop of for clients is either at the start of the process or at the full approval stage. With this system the brokerage will increase their closing rates and increase client retention because of the decrease in friction experienced with providing documents and application information. Banks are already starting to digitize the mortgage experience and if they do before the implementation of this system the brokerage will be left in the dust. This proposal is to get prepared for a space in mortgage brokering where everything is done online, and the client does most of the paperwork themselves. With companies like Rocket Mortgage the writing is on the wall. the brokerage needs to bring itself in a space that is going to keep it competitive and closing all mortgages that come to them.
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