How to Win in Mortgage Banking

1. How to Win in Mortgage Banking E-Mortgage Success Story • Mr. Bob Catlin, CEO & Founder, Signature Mortgage Corporation

2. About Signature Mortgage • Bob Catlin President & Founder Signature Mortgage An Inc. 500 Company

3. About Signature Mortgage • Regional mortgage provider and Inc. 500 company • Servicing Ohio and Michigan • 15 employees generate $6M in annual revenues • $2.5B in residential loans since company inception • Our competitive edge • State of the art e-Commerce technology • Exceptional service + lowest rate possible

4. The Changing Industry • Existing mortgage crisis • As of 2007, falling home prices, poor economy, job loss and panic • Record level of foreclosures and short sales • Mortgage graveyard – over 800 mortgage-related financial institutions have gone under • New purchase business at record lows • Fewer customers and less revenue per loan • Internet lead generation • Tens of thousands of leads generated daily • Consumers searching terms and conditions • Cut-throat pricing and sensational guarantees “Must compete for a smaller pool of qualified customersand quickly upgrade technologies to win Internet consumer leads.”

5. The Changing Consumer Borrowers have access to better mortgage information online. Mortgage web activity is no longer a luxury. It’s a necessity. Competing on rates alone isn’t enough.

6. Challenges of Delivering Exceptional Service • Loan application, disclosures and other documents must be reviewed and signed • Customer must provide supporting documents (e.g., proof of employment, insurance, revenue reports, etc.) 32 documents (and growing) Correct execution is imperative (to mitigate risk) • Failure to comply with regulations leads to fines • Failure to properly execute transaction leads to legal disputes • Poor customer experience if documents must go back for correction

7. Problems with Paper Processing • How going paperless affects rates & revenues • Error Prone • Risk Prone • Costly • Inconvenient • Time Consuming • 7+ days to complete a mortgage application • Increases shop-around and drop-off risks • 45+ days to close the mortgage • Processing errors lead to regulatory fines, legal disputes, damage to reputation • Paper, shipping, QA, scanning, data re-keying, follow-up calls to customers, etc. • Missing documents, signatures, data, initials, etc. • Customers must travel to the documents (e.g., retail branch) • Documents must travel to the customers (e.g., home/work) • Inconvenient • Costly • Shorter rate locks benefit everyone Ex: $200,000 loan @ 3.50%, 30-year fixed • 60-day lock = $3,000 • 45-day lock = $3,400 • 30-day lock = $3,900 • 15-day lock = $4,500 • Rates fluctuate daily • Most providers guarantee rates 30 days • Customer will not get promised rate if it takes 45-60 days to get to closing

8. Moving Mortgage Processing to the Web • Electronic signatures are key • Saw the benefits of e-signatures at Quicken Loans • Signature Mortgage’s challenge • Limited IT infrastructure, budget and resources • Could not invest in the large enterprise platform solution • e-SignLive and IBM Smart Cloud • Cloud-based services: no s/w or h/w to purchase, integrate, deploy or update • Subscription-based model: licenses for staff – customers use free of charge • Quick time-to-market: up and running in 48 hours

9. Executing the Mortgage Application with e-SignLive • Co-borrowers can be in different locations

10. Executing the Mortgage Application with e-SignLive Customers Receive Email invitation Guided Review Process 1. 2. 4. 3. ESIGN Consent Logs Into Service Visual Signing Prompts Loan Officer Notified When Completed Verifies & Closes the Signing Session Secure Copies Delivered 5. 6. 7. 8.

11. Impact on our Business • Doubled revenues in the first 6 months of 2012 • Reduced application processing time to less than 24 hours • 99% of all home loan applications completed online • Decreased processing costs by over 85% • Enables loan officers to spend more time selling

12. Impact on Staff • Getting internal buy-in was key • From concept to beta testing, deployment and launch, staff was on-board • Improved loan officer morale • Technology as competitive differentiation • Communicate with clients with confidence and impact • 99% of mortgages now e-signed • Much easier to recruit new staff Loan officers believe they can compete with national players.

13. Impact on Customers • Creates a sense of urgency • Less likely to shop around • No longer make changes • Creative, fun and hassle-free • Relationship begins on a strong foundation • Prevents competition from sneaking back into the picture 99% of clients now e-sign online.

14. Unsolicited Customer Feedback “My husband and I usually work with our local bank for financing and refinancing our home loan. Signature Mortgage offered us better terms and conditions, but most of all we were sold on their e-sign capabilities. We have careers and kids and we just couldn't find the time to go to the local bank branch between 9am-5pm. This was the fastest and smoothest process we have experienced.” John and Kathy MitchellCincinnati, OH

15. Unsolicited Customer Feedback “I was intrigued by Signature Mortgage’s e-sign technology and was a little skeptical in the beginning. Wow! Now this is how applying for a home loan should be! Easy, fast and hassle free. Our loan was closed in 18 days. … our local Credit Union couldn’t believe how fast everything was completed. They are taking 45 days or more! Thanks for everything.” Mark BishopCleveland, OH

16. Unsolicited Customer Feedback “I was very impressed with your e-sign capabilities, timeliness and organization of the entire process. Great job! I will definitely recommend you to my friends and family. Unbelievable technology.” Steve TempleLiberty TWP, OH

17. Key Takeaways Mortgage web activity is no longer a luxury. It’s a necessity. Consumer intelligence and expectations have dramatically increased. Reducing processing and underwriting time is critical to thriving. Most only consider the tangible, bottom-line benefits. The intangibles ensure you achieve ROI.

18. Thank YOU