New Stipulations for Licensing

New Stipulations for Licensing

January 10, 2002

The Internet Can Mean ProfitPaul HarkinsInternet, profits, online application
Lately, the words Internet and profit are not usually put
together in the same sentence. In the mortgage business, combining
those terms can be an even more elusive process.
For example, as a large mortgage company, it is easy to throw
money at a project in order to make it work, but this does not
necessarily make it profitable. If you are a small mortgage
company, there are ways you can profit from the Web that most
businesses would never consider.
The Internet is designed to make communication and research
easier, less expensive and more efficient. A mortgage application
is not difficult, and if you use the tools provided on the
Internet, brokers can save a lot of money. Companies like Ellie
Mae, LION, Myers, OpenClose, Real EC and many others offer
tremendous savings for ancillary products used in the mortgage
The most time-consuming part of the mortgage process is the
pre-qualification or pre-approval of a loan. If an originator makes
a mistake at this early stage, the rest of the application process
will be a nightmare. Assuming that it is not that difficult to find
people looking to refinance or purchase a new mortgage, how you
serve them makes all the difference. How many originators obtain a
credit report and appraisal on a borrower before they meet them? If
you are like most originators, you pull credit, but assume the
appraisal will be fine. Since the beginning of 2001, that has been
proven to be a costly mistake. Using the Internet to save money is
often overlooked as a way to boost the bottom line by increasing
your net, as opposed to the gross profit.
There are methods to ensure that your prospect is qualified from
a "value of the home" perspective. Automated valuation programs
allow any individual to determine the value of a home within
minutes. My company's product, for example, covers over 2200
counties in the United States and allows a broker to determine the
value of a home for less than $50.
In this age of refinancing, speed and cost are the major factors
in determining the success or failure of a small mortgage company.
Choose your Internet partners wisely. They could mean the
difference between saving money and collecting unemployment
Paul Harkins is president and CEO of Applied Technology
Solution Integrators Inc. He can be reached by phone at (845)
351-2220 or e-mail