It’s The Little Things That Count

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Any business should know that it’s the complaints that you don’t hear that cause the biggest problems and loss of business.

The same holds true for the defects that you don’t find. These are the ones hidden in the pipeline that can end up costing a company big money in the long run

This is all the more reason to carefully review all loans being originated throughout the process for quality and compliance.

Companies have instituted a myriad of processes and audit tests to try to control loan originations. They monitor the processes and activities of loan originators, and their processors, carefully. But in today’s lending world of high touch and high costs, we’ve seen a rise in the use of loan ‘assistants’.

These are people who are sometimes employed by a loan originator to take some of the burdens of gathering required data and servicing their customers from loan originators. They people become key to the loan originator’s, and the company’s, success or failure.

My wife is presently having some dental work. Most of the actual work is not being performed by the dentist but rather a dental technician or assistant. We’re really not sure which.

What I do know is that,

although we have always been satisfied with our dentist, my wife is not at all happy with this ‘assistant’.

So much so that we are now seriously considering finding a new dentist. That’s not an easy task, but one we’re willing to undertake if things don’t get better very quickly. Think of how easy it is today to switch mortgage lenders.

Be sure to pay attention to the details, no matter how small you may think they are. One small defect missed or ignored on one loan may reveal a whole bevy of problems lurking just below the surface in your pipeline.

One innocent complaint ignored or overlooked from one customer may reveal a flaw in your system or a weak link on your team. Don’t make the mistake of assuming that everything is going fine just because you’re not hearing of, or seeing any problems.

Be proactive in your approach to defect and complaint management. As they say in the dental field, “Be true to your teeth, or they’ll be false to you”. Same can be said about customers.

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.