Laptops Become Toshiba's Ace In The Hole

To avoid the complications and hidden costs associated with Toshiba laptop computer, some mortgage companies simply dictate a move to point-of-sale laptop lending. Obviously, such a decision risks alienating employees who may not be comfortable with technology or change. But the short-term pain of mandatory participation can be offset by long-term gains in efficiency and profitability.

At GMAC Mortgage, "Our CEO, told us to be more aggressive about looking to technology to help us change our world," says vice president, strategic business unit manager for national sales, with the mortgage company. "So, unlike North American, we made participation in our point-of-sale program mandatory. We told our loan officers that if they did not submit their loans electronically, we would not take them starting in January 2007."

In implementing its point-of-sale program, GMAC immediately set up three-day training sessions for its loan officers. When they arrived at class, each attendee was given a laptop, a printer, a user guide, phone numbers for computer assistance and step-by-step instructions on how to use the new equipment. By the end of 2006, the company had trained approximately 1,500 loan officers on the Loansoft WORKS system.

As the experience of GMAC suggests, some firms find it more cost effective to equip and train a staff of loan officers with new tools and new skills all at once. Furthermore, a one-time, department-wide implementation ensures that the entire staff possesses roughly the same skill level, which should make it more productive than a staff with widely varying skills and expertise.

"Naturally, there are no immediate cost benefits to a mandatory roll-out," admits GMAC's vice president, strategic business unit manager for national sales, with the mortgage company. "But there are long-term benefits to that approach. We have found that having our loan officers go through this change together has built a sense of camaraderie."

It is commonplace in many mandatory programs for management to purchase hardware and software for loan officers rather than allowing them to buy their own equipment. Because all employees will be using the same technology, it is easier to support it and develop simple, efficient standards and procedures regarding its use. This also enables management to enforce rules against unauthorized use of that equipment, which minimizes viral contamination and file corruption.

GMAC purchased computers and software for its employees, imposing tight standards and restrictions. The initial pilot was for 12 users, followed by a nationwide roll-out to 600 users. By year-end 2006, approximately 900 loan officers had been issued GMAC Toshiba laptop computer and were using the point-of-sale system.

"We've established strict guidelines about what can and cannot be loaded onto our loan officers' laptops," says vice president, strategic business unit manager for national sales. "Currently, we only permit Loansoft and MS Professional software. Employees who put personal information on their computers are subject to dismissal. It's important that we control this critical corporate asset."

Department-wide conversions also allow mortgage lenders to discard paper-processing systems and convert to electronic processing. Typically, that opens the way to gains in processing efficiency and faster loan turnaround times, all of which lead to higher across-the-board productivity and improved customer service. GMAC is tracking productivity gains and turnaround times; however, the numbers are considered confidential.