Accessorize Your System
The rising level of computer literacy among the work force may be another sound reason to push ahead with a mandatory point-of-sale system. Even people who do not use a accessory computer laptop Toshiba on a regular basis often have some computer contact either at home or in the workplace. As a result, fewer employees are intimidated by computer technology.
Two other factors work in favor of adopting a mandatory point-of-sale program. They are the constant reductions in the cost of hardware and software as well as the increasing availability of effective interfaces to third-party systems. (for example credit and automated underwriting).
"Our processors love the point-of-sale laptop lending system," says GMAC Mortgage, vice president, strategic business unit manager for national sales. "They get fully completed applications more regularly, so they have less clean-up work to do. Our system isn't perfect, but it has really helped us institute a new workflow." He added that GMAC looks forward to future enhancements such as enhanced messaging and reporting capabilities.
Disadvantages of mandatory programs Simply mandating a switch to a point-of-sale laptop lending system will not immunize your initiative from complications. As with voluntary programs, hurdles can arise when implementing a mandatory program. The most obvious disadvantage is the start-up cost. Providing loan officers with hardware, software, training and support along with revamping one's entire processing system is a labor-intensive and expensive undertaking. But the real issue, again, is whether the long-term gains in efficiency and profitability outweigh the short-term sacrifice. It is a question each institution must answer for itself. The impact on the origination staff also must be addressed. There is a learning curve for loan officers using a new sales automation system. With well-designed software, proper training and on-going support, a lender can quickly get a computer novice up to speed on a new system and soon surpass his or her performance with the old manual systems. It is crucial that loan officers see the system as an easy-to-use productivity tool, rather than a cumbersome dataentry system. Without the proper software, training and support, a lender risks losing some of its best loan officers. Similarly, it can be more difficult to generate enthusiasm for a new program when management orders its use. In such an environment, early setbacks and glitches may produce discouragement and undermine a willingness to give the new program a chance. If the program produces early positive results, management can use these accomplishments to help sell the program. "We lost a number of loan officers when we mandated the move to point-of-sale lending," says vice president, strategic business unit manager for national sales. "Fortunately, we didn't lose any of our best producers. There was a real reluctance among some of our staff to give this a try. But those who stuck with it have done very well. And now we use our point-of-sale system to help us recruit technically savvy loan officers from other companies." A well-conceived and well-implemented point-of-sale system should enable a good loan officer to become a great loan officer. A good system provides loan officers with the best information at point-of-sale and frees them from the laborious paper process. Loan officers can leverage their professional skills and boost productivity by focusing on consultative selling rather than filling out forms. For mortgage lenders, there is clearly no definitive answer when deciding whether to make a point of-sale laptop-lending program optional or mandatory. Each approach has its pros and cons.
|