Beyond The Arc
As I write this post, we are in the middle of “March Madness,” the NCAA Men’s Basketball Tournament. Even though my team (University of Memphis Tigers) didn’t do very well this year, I still love the excitement of the tournament.
One basketball phrase that resonates with me at The Commonwealth Group is “beyond the arc.” For those of you not familiar with the term, it means making a shot from behind the 3-point line. That is, a long-distance shot.
So how does that relate to Commonwealth and the mortgage business in general? At Commonwealth, we are big believers in having a total game plan for all of the areas of the mortgage business. We work with our customers to help them in fulfillment services (contract underwriting and processing), Quality Control, Compliance, Technology, and Condo Project standards. But even more than that, we help our customers put together their total game when it comes to mortgage lending. With our expertise in all of the aforementioned areas plus our consulting services, we help our customers to make points happen from beyond the arc. Not just a desperation shot from half-court.
From Chaos to Collaboration
One problem that many mortgage lending operations share is the “silo effect.” Most people in the industry have come up through a particular part of the business and they do not experience anything outside of the area that they work in, or, how areas work together for the greater good of the company. Loan officers who do not care about compliance; underwriters who do not appreciate the effort needed to get a loan in the door; compliance and quality control folks who seem to think only in terms of written guidance. Working with only departmental goals in mind leads to chaos between the departments.
Sadly, most mortgage management does not understand the need for all of the departments to come together and work as one. This is due to the simple fact that mortgage management often comes from the production ranks. There is no question that production is critical. No production equals no paycheck for anyone. Production at any cost is however just that: all cost. Risks such as credit risk; secondary market risk; regulatory risk; and reputational risk are always present. Not accounting for these risks can have dire consequences.
A company can have that greatest production team ever, however, if their underwriting area is not performing well, any success in revenue generation will be more than offset from losses from inadequate underwriting controls.
And if inadequate underwriting controls are not enough to scare you, lack of compliance control is even more frightening. Underwriting failures can bring down a company one file at a time. Compliance failure can wipe out a company over a weekend.
At Commonwealth, we move companies from chaos between the departments to collaboration between the areas to bring about success for an organization. We work with management to help them coach their team leads and bring about a better flow between the departments. It is a cliché, but the phrase “there is no ‘I’ in team” is still true. Commonwealth helps mortgage operations to not just look to production for revenue growth, but to look to comprehensive risk management for revenue preservation.
Offense-Defense, Inside and Out
In Basketball, unlike Football, each player works in both an offensive and defensive capacity. Each player must be able to make shots but must also be able to play defense against the opposing team. And that transition between offense and defense can happen very quickly.
Working with Commonwealth, companies are able to put in processes that maximize revenue growth and customer service, while at the same time providing the infrastructure needed for risk management. Offense and Defense in one package.
In addition, by pursuing Commonwealth’s proven strategies for flexibility and innovation, mortgage lenders can achieve success in areas they were not expecting. The ability to have both an inside and outside game is critical in today’s marketplace of high competition and high expectations. Profitability with protection. Flexibility and Innovation.
For more information on putting together all of the disparate parts within a mortgage organization for long term success, contact us at The Commonwealth Group today.
West Beibers
CEO
The Commonwealth Group