SOURCE: Mortgagebot

Mortgagebot

January 27, 2010 10:00 ET

Bank and Credit-Union Mortgage Success in 2009 Fuels Another Record Year for Mortgagebot

Growing Popularity of Online Lending, Increased Mortgage Activity at Banks and Credit Unions, and Greater Demand for Integrated Point-of-Sale Technology Yields Record Growth in Mortgagebot Client Base, System Use, and Revenue

MEQUON, WI--(Marketwire - January 27, 2010) - Despite the nation's ongoing economic challenges, mortgage-technology provider Mortgagebot LLC of Mequon, Wis. (www.Mortgagebot.com) is again reporting exceptional growth in its client base, its revenue, and in the way banks and credit unions across America are increasingly adopting its innovative PowerSite® platform to automate mortgage applications, pricing, approval, and disclosures.

Mortgagebot -- the leader in providing multi-channel, online technology for automating and integrating every mortgage point of sale -- experienced significant growth in its nationwide client base during 2009. The company added about 200 new clients in a single year, and now serves nearly 950 organizations.

According to Scott Happ, Mortgagebot President and CEO, the need to compete, grow, and boost efficiency is driving banks and credit unions to view multi-channel, integrated point-of-sale (IPOS) technology as a "must-have" solution. "Lenders of all sizes are realizing that they need to provide an efficient and satisfying mortgage-application experience for every borrower, regardless of which business channel -- or channels -- borrowers prefer to use," Happ said. "It's gratifying to see how lenders are selecting Mortgagebot's PowerSite platform to meet that need."

Not only has Mortgagebot's client base grown, but company revenues have also increased. "Our revenue in 2009 was up 25 percent over 2008," Happ said. "In addition, the overall contract value of new sales in '09 was 25 percent greater than '08."

Rise of the online channel generates solid growth in online lending for banks, credit unions

Mortgagebot PowerSite -- the leading solution set for automating the mortgage-application process -- is an outsourced, software-as-a-service (SaaS)-based technology suite that is deployed via the Internet. It's a private-labeled IPOS platform that Mortgagebot operates and maintains for its clients. From its offices in southeastern Wisconsin, Mortgagebot manages over 6,500 Web sites for its nearly 950 clients -- and the company closely tracks not only every visit to those Web sites, but also the flow of mortgage applications.

"The online channel continues to grow in popularity; and as a result, our clients' Web sites welcomed more than 37 million visits in 2009," said Happ, "which is 48 percent more than 2008, and a 740 percent increase over 2004. In addition, our clients saw a corresponding increase in submitted mortgage applications during 2009: In total, PowerSite handled over 730,000 applications -- that's a 52 percent increase over 2008."

Happ also noted that despite those who claim the Internet is primarily a refinancing channel, there are still many borrowers who apply online for first mortgages. "Only 55 percent of all PowerSite applications were refis," noted Mr. Happ. "A full 45 percent of the mortgage applications taken by our clients were for new home purchases."

Unique IPOS technology is becoming "a must-have solution"

"It's no longer a 'single-channel' world," said Happ. "Today's borrowers demand the same fast and efficient application experience whether they apply via the Internet, in the branch, through the call center, or with a professional loan officer. And competitive mortgage lenders understand that they must deploy efficient automation tools across multiple origination channels to grow their businesses. That's why we're delighted to be able to provide our IPOS solution set."

"Lenders are now seeing multi-channel IPOS technology as a 'must-have' solution," continued Happ, "and they're using PowerSite in multiple POS channels to boost volume. For example, in 2009 our clients saw a 108 percent increase over 2008 in applications taken by loan officers, branch employees, and call-center staff using PowerSite Pro and PowerSite Advisor."

"This demonstrates that many banks and credit unions are now viewing the branch and call center as a key element in their mortgage business strategy," Happ noted.

Providing clients with fully RESPA-compliant origination technology

Another factor in Mortgagebot's 2009 success is its ability to consistently deliver fully regulatory-compliant technology to its clients during one of the greatest regulatory upheavals in recent history. "Industry experts agree that automation is a necessity for lenders to ensure compliance in today's complex regulatory environment," said Happ. "That's why our staff worked very hard to ensure that our products were always fully compliant throughout 2009 -- including complete compliance with the sweeping RESPA changes that took effect on January 1, 2010."

According to Happ, all Mortgagebot clients that had implemented PowerSite as of December 31 had access to fully compliant technology on January 1. But more importantly, Mortgagebot clients agree that the rollout of PowerSite's compliance-related enhancements went smoothly:

--  A manager from a multi-billion-dollar east-coast bank said, "The
    changes are in place and look good. Once again, Mortgagebot has come
    through."
    
--  A representative from a 100,000-member nationwide credit union
    stated, "The way your team handled the changes is the exception, not the
    rule. Thanks for making it an easy process."
    
--  The staff of a seven-branch Midwestern community bank said, "We've
    told all the mortgage people we know: Mortgagebot has it together!"
    

Convergence of trends contributes to success

"Once again Mortgagebot is benefiting from a convergence of industry and market trends," observed Happ. "For example, research from Deloitte Consulting has confirmed that borrowers now actually prefer to do their mortgage shopping online. Also, homes remain affordable; and recent government incentives for new-home buyers -- combined with near-historic low interest rates -- have resulted in higher mortgage volumes for community banks and credit unions."

"In addition," Happ explained, "lenders are now realizing they need 'smart,' integrated mortgage-application technology to increase efficiency, improve borrower service, and maintain regulatory compliance. So once again it's a 'win-win' situation: Our clients use PowerSite to handle more mortgage applications; and as their volume increases, our business grows."

About Mortgagebot

Mortgagebot LLC (www.Mortgagebot.com) is the industry-leading, Inc. 5000 company that provides the unique, award-winning PowerSite family of integrated point-of-sale (IPOS) solutions for taking mortgage applications from every mortgage channel: consumer-direct via the Internet, in the branch or call center; or through professional loan officers. Mortgagebot blends extensive mortgage experience with leading-edge SaaS technology to create scaleable and affordable Web sites for nearly 950 mortgage lenders nationwide.

Lenders large and small embrace PowerSite because it is a flexible, easy-to-use mortgage-application platform that features a rapid and proven implementation process. PowerSite products include:

--  PowerSite Consumer, which serves as a lender's "self-serve" mortgage Web
    site, taking mortgage applications directly from online borrowers "24/7" --
    in as little as 20 minutes.
    
--  PowerSite Advisor, which was created for use by branch staff or call-
    center representatives. After only brief training, associates can use
    PowerSite Advisor to take complete, error-free mortgage applications in
    about 30 minutes or less.
    
--  PowerSite Pro, the flexible origination toolkit designed to meet the
    unique needs of professional loan officers.
    

Mortgagebot also offers Mortgage Marvel® (www.MortgageMarvel.com), the award-winning, ad-free mortgage-shopping service that delivers accurate, anonymous, real-time rate quotes in seconds from a nationwide selection of lenders. But unlike other Web sites, Mortgage Marvel enables borrowers to link directly to their preferred lender -- where they can complete a mortgage application and get pre-approved with full disclosures, all in as little as 20 minutes.

Mortgagebot, Mortgagebot PowerSite, and Mortgage Marvel are registered trademarks of Mortgagebot LLC.

Contact Information

  • For more information, contact:

    Cindy Golisch
    PR Unlimited
    480-471-8820

    Dan Welbaum
    Chief Marketing Officer
    262-292-2707