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Loan-Application Volume Soars 330 Percent After Credit Union Implements Multi-Channel Online Lending Technology

Faced With Challenge of Mortgage Industry's Fluctuating Loan Volume, INOVA Federal Credit Union Uses Mortgagebot's Integrated Point-of-Sale Technology to Overhaul Lending Operations (December 19, 2011)

MEQUON, WI -- (Marketwire) -- 12/19/11 -- Through the use of PowerSite®, an integrated point-of-sale solution (IPOS) available from Mortgagebot® (www.mortgagebot.com), INOVA Federal Credit Union, of Elkhart, Indiana, has greatly accelerated its mortgage-lending growth with a 330 percent increase in application volume in three years. The $244 million-asset credit union also boosted productivity by shrinking loan-cycle time 32 percent and virtually eliminating paper mortgage applications through the multi-channel online technology. The nearly 70-year-old credit union -- which serves more than 33,000 members through a nine-location branch network in Indiana, California, and North Carolina -- gained newfound capability to handle volume fluctuations with minimal staff and at affordable cost.

These mortgage gains are striking against the backdrop of the mortgage industry. According to the Mortgage Bankers Association, refinance applications are up 83 percent from February 2011, while purchase money mortgages have fallen to a 20-year low. With the irregular ebb and flow of refinance and home purchase activity, even large lenders find themselves hard pressed to respond adequately to demand fluctuations.

"We are excited by INOVA's lending achievements because they demonstrate that smaller lenders have access to affordable, advanced online lending technology it delivers the vital flexibility needed to compete against large lenders," says Matt Cotter, Mortgagebot's senior vice president of sales and marketing. "PowerSite has enabled INOVA to innovate its mortgage lending operations by embracing the online channel and utilizing it to the credit union's greatest advantage, including efficiently handling volume fluctuations, streamlining processing, and seizing greater market share."

INOVA's Executive Vice President John A. Katalinich says the credit union operated a traditional paper-based mortgage department before introducing PowerSite to its minimally staffed operations. Payback was almost immediate and the IPOS delivered precisely what INOVA hoped: a modern, scalable operation for market-share growth. "Our [new] business model gives us the low-cost scalability we needed," he noted. "PowerSite [also] gives our members a 'one-stop shopping' mortgage website -- and the online channel is becoming increasingly important to them."


Obstacles to Growth: Manual Paper-Based Process, Limited Staff, Volume Fluctuations

INOVA's commitment to growth -- in mortgage products, secondary market sales, and market share -- was severely hampered by outdated business practices. Manual processes pervaded lending operations and hindered efficiency and customer service. For instance, members could only apply for a mortgage by personally meeting with a loan officer and completing a paper application form. Moreover, with only three mortgage loan officers to handle applications, fluctuating mortgage demand strained processing capabilities. INOVA's lack of scalability ultimately thwarted attempts to seize greater market share.

Positioned for Growth: Modernized Processing, Top-Notch Customer Service, Affordable Scalability

Implementing Mortgagebot's PowerSite solutions mobilized INOVA for long-term growth, with exceptional advancements in loan processing, customer service, and volume management:

  • 330 percent increase in application volume. An easy-to-use mortgage website stepped up loan-application volume 330 percent -- from 340 loans to 1,450 loans in just three years.
  • 32 percent reduction in cycle time. Enhancements to productivity -- automated disclosure, immediate pricing, and elimination of redundant data entry -- shortened the average period from submitted application to "clear-to-close" from 28 days to 19 days.
  • 80 percent of applications started online are submitted. Ease-of-use and internal efficiency contributed to a high conversion ratio: 80 percent who started an application through PowerSite submitted a complete application.
  • 600 percent increase in application-intake personnel. Intuitive interface allows non-mortgage loan officer personnel to assist members with completing applications in less than 20 minutes. Increased personnel easily accommodate volume fluctuations.

Additional results further confirm PowerSite's utility. INOVA receives 92 percent of mortgage and home-equity loan applications through PowerSite, which gives members the option to apply online, in the branch office, or by phone. INOVA can also finalize an application within 24 hours through the use of automated calculations and PowerSite's integration with INOVA's credit reporting solution, automated underwriting system, and LOS.

About Mortgagebot
Mortgagebot (www.Mortgagebot.com), a D+H company, has led the industry since 1997 by providing the unique, award-winning PowerSite family of integrated point-of-sale (IPOS) solutions for taking mortgage applications in every mortgage business channel: consumer-direct via the Internet, in the branch or call center; or through professional loan officers.

Mortgagebot blends deep mortgage experience with innovative "cloud computing" technology to create scalable and affordable Web sites for more than 1,000 banks and credit unions nationwide. Lenders large and small view PowerSite as a "must-have" solution because it helps them deliver a superior borrower experience, increase volume, and compete more effectively. PowerSite is also flexible and easy to use, with a rapid and proven implementation process.

Mortgagebot also offers Mortgage Marvel (www.MortgageMarvel.com), the award-winning mortgage-shopping service that delivers accurate, anonymous, real-time rate quotes in seconds from a selection of hundreds of lenders. But Mortgage Marvel uniquely enables borrowers to link directly to their preferred lender -- where they can complete a mortgage application and get pre-approved with fully compliant disclosures, all in about 20 minutes.

Mortgagebot, Mortgagebot PowerSite, and Mortgage Marvel are registered trademarks of Mortgagebot LLC, a wholly owned subsidiary of Davis + Henderson Corporation. Other products and/or services are the property of their respective owners. Other products and/or services are the property of their respective owners.

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To learn more about Mortgagebot, call:
Cindy Golisch
President
PR Unlimited
480-471-8820


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