According to ICE Mortgage Technology’s 2023 Borrower Insights Survey, nearly two-thirds of recent borrowers plan to seek new financing within the next year, including home equity loans, reverse mortgages, refinancing, and investment property loans. Are you prepared to provide the experience that will win their business? Tune into part two of our “What Borrowers Want” series to hear Matt Dowd, VP of Product Management at ICE Mortgage Technology, share an inside look at what’s most important to today’s borrowers when selecting a lender, how you can ensure you’re delivering in those areas, and how ICE Mortgage Technology® can help you deliver high-tech, high-touch interactions that create customers for life.
Download ICE Mortgage Technology’s free “What Borrowers Want” eBook to access more valuable data.
What is up, ladies and gentlemen, good morning and welcome to The Shred Show live.
We are Part 2 of What Borrowers Want series, and I am so excited to have my new friend Matt Dowd hanging out with me.
He is the VP of Product Management over at ICE Mortgage Technology and he is here to share some inside look at really what's most important to today's borrowers, especially when it comes to selecting a lender and how you can really ensure that you're delivering in some of the top areas.
And what we're going to be talking about today is how ICE Mortgage technology can help you deliver a high tech, high touch interaction to create customers for life.
Because we all know, as we spoke about last time on what borrowers want is ICE Mortgage Technologies 2023 Borrower Insight Survey.
And one of the details Matt and I are going to be discussing today is nearly 2/3 yet.
That is right, ladies and gentlemen, 2/3 of all borrowers plan to seek new financing this next year, home equity loans, reverse mortgages, refinancing investment properties.
Ladies and gentlemen, are you prepared to really provide the experience that is going to win new business?
Because if you're not, Matt's about to share with you exactly how to do it.
Ladies and gentlemen, Are you ready?
Are you ready?
It is time to shred.
What is up?
Ladies and gentlemen, as you heard in the intro, we have got a lot to talk about.
But before we get into it, I've got the man himself, Matt Dowd hanging out with me.
VP of Product Management at Ice Mortgage Technology.
Matt, good morning and welcome to the Shred show.
Super excited to be here and I really appreciate you extending the offer.
It's it's an honor to be here, look forward to the discussion.
I will do my best to keep up with your enthusiasm and your energy.
You set a real high bar, so let's get into it.
Let's get right into it, Matt, I I know you're going to match my energy and what you lack in energy and enthusiasm you make up for in information and data that we're about to share with all of our friends out in the mortgage industry.
Before we dive into it, though, I've got to know I, I love hearing people, people's story of how the heck did you get started in this industry, my friend.
Yeah, yeah, good question.
I'll keep it quick.
But you know, like most of us, it's something that I didn't, it wasn't.
I never thought I was going to end up here.
I spent a long time really on the consumer side and ad tech and customer experience as a whole in the digital space.
You know, I'm old enough when the Internet was kind of a new thing and people were looked at it like a little bit of voodoo through, you know, a company and acquisition.
You know, I ended up about 9 1/2 years ago in the mortgage space and and here I am that's that.
It's so funny.
That's like, Yep, here I am, you know, by certain happen chance this happened or I was acquired.
And now and now working with ICE mortgage technology, what better place would you be at?
The ICE team continues to lead innovation and data, and that's exactly what we're going to be talking about today.
So let's kind of dive into it, because on our last episode of What Borrowers Want, we started to dive into the 2023 Borrower Insight Survey, the survey that Ice Mortgage Technology put out.
And some of these findings, we're literally and we're going to be diving into them deeper and deeper as we get into this series.
But one of these findings found that fewer than one in 10 borrowers want a fully digital experience, which to me, everybody's talking about AI and the digital experience and this and that and some of them, sure they they like the convenience of the digital processes and services that are out there.
But how can lenders in particular, how can they find that balance between delivering A streamlined high tech experience while still maintaining that human connection, that human relationship during the process?
Yeah, great, great question.
I mean I love this question and when you think about that stat, right, one in 10-1 in 10 wants digital, it's like that's small, like I don't like those odds at all.
You know if I'm, if I'm a betting man and and to your point you nailed it Josh.
You know over the past years there's been so much talk about the digital experience and what does it mean and and you know directionally you know where are we going with that and is it this push button mortgage and like it all sounds fantastic, but when you talk to the consumer, right, the borrower at the end of the day like you got to deliver what they want and only one in ten of them really says that's what I'm looking for, right.
So do they want it the old way?
Do they want all digital?
So it's this hybrid approach.
You really got to understand that and and let me just say, you know, give you my perspective here like digital super important, right.
And and I think you know there's a lot of talk about why it's important.
You know it's going to reduce costs, it's going to create efficiencies and consistency, it's going to speed up the process and all that stuff.
All super true statements like without a doubt, right.
And if you look at most of those, it's lender benefit, which isn't a bad thing, right.
But the experience part is the borrower and you know, without the borrower, none of us are here today.
And if they're saying we don't know, if we don't want all digital, then you know, you got to hear what they're saying.
You know, I heard a quote a long time ago that it always resonated with me that the consumer is the most perishable.
Get out there, right.
When you think about it, they like they can come and go and there's so many choices.
You get one, maybe two shots at them, but then they're gone, right.
So but they're also the most valuable commodity that we have.
So you really need to to to understand what it is they're looking for and what it is they want and how do you blend technology and human to brought to provide that high touch experience, right, that kind of high, that high tech, high touch experience.
And you know unfortunately I think for anyone listening to the lenders out there, you know it's not a one size all approach, not A1 size all approach, right.
We're all different, I'm a different person than you are Josh, right.
And at any given moment, any given day, what I'm looking for may change.
And it's a lender's responsibility to be able to have the technology and the people to adapt and adjust to that, to guide that borrower along the journey.
You know, when you when you look at really on a from a digital perspective what the borrowers are looking for, you can kind of hone it down into a couple areas where I think they're like okay, digital makes sense for me here, right.
Online application, you know I think 70% of those people like, yeah, I like the concept of an online application.
The the the they want convenience, they want speed, so, So those things all have to be in play, but it's got to be continued through the process, you know.
So as you talk about high tech and high touch, I think you got to pull on that thread and say what does that really mean?
You know, if our study showed that 26% of the borrowers said they wanted an equal blend of the traditional methods and the digital tools.
So what does that mean?
Where do they want it?
When do they want it?
At any given point in time.
So I think it comes down to setting expectations, like you set expectations from the jump and how do you do that?
Like you need to ask your borrower and ask your customer how do you want to be communicated with?
What are you looking for out of this experience instead of saying, hey I'm an expert, I'm going to pull you on this journey.
Today's consumers, you in regardless of the industry is used to having a say or being heard and person in listening, right.
You're no longer a transaction.
You're a person participating in this in this huge investment that they're about to undertake, right?
Probably the biggest investment in a lifetime.
It is one of the biggest investments of their lifetime.
And you're kind of because with so many borrowers wanting that comment because again with the data proves it.
They want the high tech, but they want the high touch and you've kind of alluded to this, is it the listening aspect, Where are you finding borrowers are wanting more of the human interaction, Where are they wanting the convenience of the online tool?
Where did the two fit best?
So, so like I think from a technology point, like I said it's there's a few areas where we see clearly they're they're looking for it, it comes to E signing, right.
And and something's at the closing table.
Your application itself like all those a high percentage generally you know in the did not to get it each individual stat, but for north of 45% of of the borrowers like hey, we like digital here.
I think that the human touch gets a little bit, a little bit more subjective based on the borrower itself, right.
You say you want an online application, true, right.
Everybody wants it, but it comes down to knowing your borrower, right.
When you look at the data, you know somebody who's gone through the transaction four or five times, like the stats show the majority of those people are like I don't want to talk to anybody at that, right?
Because I get it.
I know all the questions.
I know why you're answering, you know why you're asking for them.
I'm happy to, you know, E provide you my my income, my assets, whatever it may be.
First time home buyer though totally different story.
So you're going to find that although they might like to start to call it, fill out the form, they're gonna run into questions real early in the process.
And then throughout that, once they actually submit, then the real work starts, right?
We all think of it in the space, Okay, You're gonna upload your docs, it's gonna take us this much time to go through it.
We're gonna come back with questions and we know that inside and out for a borrower they they get super confusing.
So that's where I think, you know the human aspect has to come in is right from the jump on the, you know, once they get stuck on that application, you're going to see really quickly kind of their their level of knowledge and their comfort.
So you better be prepared throughout that process to step in and and touch base with them and touch them on the human side as frequently as they want.
You know, I think that ultimate consumers are going to get what they want.
We can have our process.
We can, you know this is, this is how it works.
But to my point earlier, you know they're perishable and if you're not meeting their needs they'll find someone else who does.
The options are limitless out there.
So I think that that question, I mean it's such a great question and I wish I could say oh, you you digital here, human here, digital here at that point.
But man, like as humans, like we're not logical, right?
At least not on the surface, no.
Well, how did how do you ensure that you're right that you're, that that you're engaging with them when they want and how they want?
Well, and I think that's just the key, Matt, is everybody's different.
And that's why having the data, the insights that ICE Mortgage Technologies put out in this report, in this survey, like learning.
Here's the one thing that drives me crazy in the industry, Matt, is loan officers.
We have to start thinking outside of that box now mortgage prevent mortgage advisors, even guides.
That's what we're becoming is because like you said, everybody's a little bit different.
The experience you may have a first time homebuyer that's going to be very different than somebody who's bought this is their 9th home.
They've got investment property, sure.
They want it streamlined.
You have to understand what is going to truly help them, especially if you're trying to, which we all want.
We want that client for life, those future referrals which we're going to talk about here in a SEC because I want to go down that road.
Yeah, understanding the needs, the wants, the desires, because as you mentioned buying a homes a big deal, sometimes it's mortgage pros.
We forget that especially for a first time home buyer they're about to spend hundreds of thousands of dollars, the biggest purchase they're ever gonna make in their life.
So understanding what's important to them.
Again there is no perfect.
I'm sure as technology advances and as companies continue to understand human interaction better sure it's gonna get better and better.
But As for right now there's there is no perfect answer.
I love the US like there's no perfect like in jail right now.
We're getting very close.
We're getting better at it.
But there there is no and and to this I'm kind of interested in this because you know according to the survey there was only one in three reported having a great online experience.
Why, why is that and where do you think the current online experience is really falling short right now?
Yeah, you know again again great question and and one in 333% right.
Like as a business owner if you're hearing that 33% of my folks really had a good experience, you got it.
You got to move the needle, right.
You have to move the needle, especially with all the choices.
And you know, if 66% of your people didn't have a great experience, what's the likelihood you're going to keep them coming back or even get a referral for that matter, Right.
Like, I'm not happy.
So, you know, here's what I think that you know, an analogy is when you think about experience, right?
So, so say you go to a nice restaurant, right?
Or a great resort, right.
The atmosphere can be great.
The food can be wonderful.
But if that server or that, you know that the, the, the personnel at that, that resort aren't treating you well, your experience is not going to be good, right?
It's the little things the server comes up.
Hey Josh, how can I help you?
What do you like suddenly they build this like rapport with you.
I mean, hey, you can go to a restaurant that the food may be marginal, but if the service is great, you're like that was a fabulous experience.
And really what's the difference there?
It's the people.
It's how they treated you.
They made you feel like you were important, like you were special, like you mattered.
Even though they may have six other tables waiting, right?
Just like a loan officer's probably got, you know, 7-10 other people in the pipeline.
It's their responsibility to be like right now.
At this point in time, Josh, you matter most to me and I'm going to listen to you not just profess what's going to happen, right, just because there's this process there, how's that going to work with you?
So I think that's like that's super critical.
When you, when you talk about that, how do you move that needle from, you know from 33%, you flip the, flip the script, you want 66 percent, 70% of people saying that was the best experience ever.
I mean, I would argue that a borrower would pay a slightly higher interest rate for an awesome experience and expectations that have been met versus like a lower.
I mean, is it any good to say, yeah, I used this lender, they gave me a good rate.
It was a crappy experience, right.
You're not going to get referrals that way.
So I think that's where you got to focus in on and it comes down to knowing that what that person wants up front again is, as I touched on earlier, this is common assumption that the younger people want all digital.
It's fundamentally not true.
You know, 51% of older borrowers actually want more digital.
But but like I remember years ago when POS was really big, it was like you have to have this fully digital experience because the millennials, all they're going to want is is, you know, digital.
They're not ever going to want to talk to anybody, right.
They want to use mobile.
It's all digital.
That's where everything's going.
Now this this analogy of a restaurant that you just used and having it have an experience.
I people are probably kind of shaking their heads.
I think this is one of the best examples that or analogies I've ever heard and people are in the mortgage industry like well, Josh, Matt, you can't compare a restaurant experience to a home buying experience.
Of course you can because we have a lot more restaurant experiences, resort experiences and that's how the human brain is processed like that.
And and I think sometimes we we overlooked that it's like ah well that's it's different it's not it's really not creating that experience creating I I 100% agree with you and being in the mortgage industry as long as I've had, I have had again we're trying to offer the best to our consumers, best raise products things like that.
But I have had clients work with me because of the experience because of the advice and being that advisor being that longterm guide of like hey this isn't.
I'm not just helping you Matt by this home.
I'm helping you on your future opportunities of like, are we getting interest rate?
Using the equity in your home, How are we gonna leverage it in the future?
So it's that type of experience where people are like, man, Matt knows exactly what he's talking about.
Yes, maybe he's got a little bit higher interest rate than the guy down the street with this billboard, but I know I can't rely on him.
I know I can count on him.
And that's something where technologies can't match right now.
And and I appreciate you saying that, because you're right, people can shake their head and said that there's apples and oranges.
And it's not because an experience is fundamentally experienced.
The human brain is conditioned.
Like I I enjoyed it.
It was OK or I didn't enjoy it.
Regardless of what what that is.
And experiences aren't usually one big thing.
It's a combination of series of these little things, as you mentioned when you were, you know, when you were originating tying all these little pieces together.
That's what creates the experience, right?
And it can be in any aspect of life.
And I think the other thing you touched on is, you know with the introduction to digital, I think we all need to be super thoughtful of an expectation that that that a borrower has up front of what digital means, right, right, wrong or indifferent.
We all interact online with stuff every day.
So you have an expectation.
What what's Matt's expectation?
Well, my expectation like I get the mortgage industry right, but my expectation would still be if I call you up, Josh is my originator and I've already provided a bunch of information.
Know me, don't ask me to repeat the information respond quickly, right, don't.
If If I ping you don't wait 2448 hours to get back to me because my expectation with technology today is you can respond pretty quickly.
Does it have to be instantly?
But you know if if if you're servicing me or you know, I have a relationship with you and it's something this important to me and I ask you a question and you wait 4-5, six hours to get back to me, I'm going to be like what's up?
Like that that time for me as a borrower that five hours for use nothing, right.
You know, this inside and out, you're like, man, if we move this in five hours, we're moving at lightning, lightning speed or two days or three days for me that's an eternity, right.
So I think we got to be be like I say, you know you're in Utah, right?
Yeah, I am.
Snowboard, skier, mountain bike, anything outdoors, love it.
We just, we wrapped up an epic season here in Utah with some amazing snow.
Yeah, so, so, so think about this again.
Tying back to experience or just a journey, right, Taking on a journey.
I come out to visit you.
I say, let's go snowboarding.
Josh, you're like, all right, I'm in.
You take me up on top of the mountain.
You, you lay out the trail.
You're going to, you know, go right at this tree down there.
You see those rocks go left, but don't go right there because there's a huge Cliff, right?
Or a bunch of rocks, you.
But you're better than me for sure.
You get 3 or 4 minutes ahead of me.
I'm lost and I'm freaking out.
Uh oh, what's on the other side of this tree?
You're just chilling.
Wait for me to come around the corner.
Finally I do that.
3 minutes for you is nothing.
You're just catching your win, right?
I was terrified.
And and as you go through the borrower experience again, think about that again.
Silly analogy, but I think it's so on point because I'm asking you, the originator, to help me make the biggest financial decision of my life, Huge commitment.
Well, if I'm left to my own devices to imagine, like, what's happening because I haven't heard back from you and you're like, the process is the process is the process.
I'm freaking out.
You may have been a great job setting expectations for me on day one, but we're in week two now.
I've forgotten all that.
So I think that communication piece that touched and and that's where the tech and the human touch comes in because you can leverage talk tech but be relevant not just a separate e-mail.
Hey Josh I know you know I know you sent your docs two or three days ago.
Here's what's happening.
Like I can take a cyber, you know, of breath 100% in two days.
Matt, you've just set my expectations.
I'm breathing easy.
What did that take you?
3 minutes, 2 minutes to send me a text or exactly right.
And to Rob's point, Rob, Palmie commented here, customer communication is key and that's just it and kind of as we go in this direction and as we were alluding to.
Comes to creating and tailoring an experience for each borrower because Matt's different than Rob then Josh and everybody.
How can technology in particular help lenders meet the borrowers in the preferred way they want to be contacted like because there are so many ways to do it these days, so many ways and I think this is you know, this is something we're actively working on at at Ice Mortgage.
But you know, our philosophy is, you know, an open framework if you will like we want to build the best platform possible.
But there's lots of other great companies out there that do a lot of lot of things.
But you know, if I'm if I'm running a lending shop, what I'm looking at is all of my technologies and saying like how can I create, you know, a surface, a communication surface, right.
So not just this piece does X and this piece does Y, How can, how can I create a connective surface that allows my borrower to be made aware of of anything that's happening right within the process that should be relevant to them, right.
Like that's how I look at at technology.
It's, you know, kind of like a bridge that allows them to just walk, you know, gently and quietly across the land mass that's that's from a technology.
So you start piercing them together and saying how do they all come together to create the surface area that allows the transparency, the communication, the efficiencies, you know all those great things that technology does and it's a big task, right.
But you've got to be thinking holistically of your ecosystem versus like I have a problem to solve today and it may be you have a problem that's fundamental.
So we got to solve that today.
But if you just solve that and don't think about what's around the corner, I think that's where lenders run into this hodgepodge of technology and you got you know, five different point solutions and there's four different interfaces and the data doesn't come back and forth.
And now I got to ask the borrower to send stuff, right, like you're and you so.
So I mean that's that's my take on it.
As you as you look at you know how you leverage technology, just the the technology's a tool, right.
And people talk a lot about automation and automation's super important, but I like to think of it more like acceleration.
How do we accelerate right.
Like I want to you know the the technology is just a tool to enable people you still need the people right to move faster.
We're not we're not an automotive manufacturing facility here right where robots going to come in or chat bots are going to come in and say 00 Ki don't need you to do a transmission anymore like that's not mortgage needs people and always will because of the emotional you know the emotional commitment that borrower is making and you just got to nail that you make such a good point here and what you just said I hope everybody like that really hit with everybody because it doesn't just end here it always will this process, this experience.
Yes, it's evolving.
But our goal isn't just for that bar of experience to end at the closing table.
It's not like, hey, Matt got the got the deal done, you know, perfect.
Hope you're happy.
On to the next one.
No, like if you if you play the short game, you're gonna get short results.
If you play the long game, you're gonna get the best results.
So what advice, what guidance Even I I don't even think advice is the best word.
What guidance do you have for for lenders and our mortgage professionals to help them really deliver that high tech yet human touch experience that is going to drive that repeat referral long term business?
Yeah, yeah, I think you answered it for me right.
Are you playing the long game or the short game?
Is that consumer to you, a transaction, a means to an end to close them out and get your check and move on or are you really thinking about what's the, what's the long term value of, if you will, of this consumer?
And that's if you look at it that way, you know, you got to look beyond the transaction and what does it look like after they close?
Like, you know, are you doing the, the annual mortgage review with them?
Are you sending them on my birthday card?
Are you keeping in front of them?
You know, valuable information.
I can tell you I've taken out in my life 5 mortgages, right?
And that's not to mention a construction loan and some refi's in between.
Do you know how many people have ever kept in touch with me?
That would be zero really zero for me.
That's that that's true.
Never like follow up emails or hey how you doing like and so I have used five and I'm in the mortgage business job.
No peeps right.
And and and zero people.
After that transaction was done I got the courtesy thank you letter.
Oh thank you.
If you know you know if you have any referrals send them my way no one never I've never heard And my last my last mortgage was only taken out two years ago.
I've never heard from them again.
OK now, but I want to build on this just real quick.
This is really interesting.
So you're in the industry, you get that thank you letter.
There's no been no other communication.
What do you do Like you're not like, Oh yeah, I'm going to call Bob back like, oh, thanks for the letter, Bob.
It's just not there.
So what I do, it's like, well, I guess if I if I'm ever going to refer someone or if I'm ever going to go back into it, I'm going to call someone I know and say here's what I'll be looking to do and start the process over.
And you know I think your question though is how do you change that, I mean and this is where technology fits in perfectly, right.
Because you can't expect, you know the the, the loan officer to remember all these clients, they've established relationships and and do the right things and touch base when they should.
Technology, you know through automation you can send out the emails, you can send out text and it's not just e-mail, you got to keep that blend, send a text, send an e-mail or reminder to make a phone call.
So your Omni channel communication, like you're a person, right?
And that's just technology.
Sending you a reminder.
Hey, Josh, you know I closed Josh six months ago.
Hey, Josh, How'd the move go?
Y'all in your house yet?
Is it everything you dreamt of or whatever?
Like have that conversation a year, two years later maybe?
You know, they have kids by the way, right?
Hey, it was, you know, it was it was Sally's birthday.
Happy birthday to her.
Like those checkins.
That establishes the relationship, right?
Like there's a, there's a quote by Maya Angelou I just thought was great, right?
It's like, you know, people, people won't remember what you said or what you did, but they'll always remember how they made you feel, right?
So if you make me feel like I matter to you and I'm not just a transaction, you got me right.
You got me for life.
Because look I didn't like having to go find a new you know a new bank a new lending institution new loan option to do this.
You know every time I wish and and by the way almost every one of single the people, every single person I dealt with told me like, oh, but I got you like like I'll be at your kids high school graduation.
You know what I mean like I am we're going to be tight.
Nope, didn't happen.
And that's a mess.
And that's why I think you get this whole thing about the experience, right?
If you if you take that survey and that transaction closed and let's say that survey goes out a week, two weeks or a month later, but you haven't done anything, you're gonna be like, eh, I mean, right, Cuz you wanted the house, not the mortgage anyway.
But yeah, I think that's the piece where tech can help a ton.
My gosh, that is exactly it.
That is where tech can help that.
You mentioned something that I think omnipresent communication, I don't even know if you caught the use likes omnipresent be where they are whether it's mobile, e-mail, social media like there's so many places that you should be showing up for your consumers.
And that's what a great way to wrap this up Matt, because that's where technology comes in, that's where ICE mortgage technology that's where this survey you guys have given us the data, you've given us the insights we as lenders, we as mortgage professionals just need to go meet our consumers at that level and continue to provide.
Matt, it's not hard either.
Look at, look at the transactions you've had.
Even you as a mortgage professional, they were missed.
For you, how many other hundreds of thousands of consumers out there are having the same experience that you have?
Ladies and gentlemen, you just have to be better than your competition.
And the bar is fairly low.
So go out there and make it happen and you're gonna like again, according to the survey, there's plenty of opportunity to come this next year.
Yeah, meet them where they want, Josh.
If they text you, text them back.
If they call you, call them back.
It is that simple.
What a great way to Matt just gave you the secret of all secrets.
Ladies and gentlemen, go there.
This has been an absolutely brilliant show, Matt.
I cannot thank you enough for coming and hanging out with me and sharing all the insights and the incredible expertise that you have.
I really appreciate it.
This has been incredibly insightful, man.
Thanks a lot, Josh.
I appreciate it.
I really enjoyed it and nice talking to you, always nice talking to you.
It's always incredible having the Ice Mortgage technology team here sharing the insights.
And guys, if you want to check out the 2023 Borrow Insight Survey, we'll drop a link below because like we mentioned, it will continue to help guide you on this experience to really helping all of your clients have the best experience for them and their home buying journey.
With that, as always, we appreciate you.
We love you.
Now it's time for all of you to go shred, go show up, hustle, repeat every day.
See ya and.
Information contained in this audio was obtained in part from publicly sources and not independently verified. Neither ICE Mortgage Technology nor its affiliates, make any representations or warranties, express or implied as to the accuracy or completeness of the information and do not sponsor, approve or endorse any of the content herein. All of which is presented solely for informational and educational purposes. Nothing herein constitutes an offer to sell, a solicitation of an offer to buy any security or a recommendation of any security or trading practice. Some portions of the preceding conversation may have been edited for the purpose of length or clarity.