The large nonbank mortgage lender and servicer, Mr. Cooper, is used to onboarding huge portfolios of loans.
By its own admission, such a process can be confusing and stressful.
So with that in mind, the Mr. Cooper team developed what they call the “Red Carpet Initiative.”
The initiative came to light during a recent HousingWire editorial awards nomination. And in a follow-up conversation with HousingWire, Mr. Cooper staffers explained in an email, Red Carpet is a “tech-enabled omni-channel approach,” to transferring loans.
So what does that mean? It begins by issuing more informative welcome emails to Mr. Cooper’s new customers, something uncommon in the mortgage servicing industry. As we all know, these types of emails are often dry and simply state the mortgage is being transferred. Mr. Cooper does beyond that now, and then some.
“The emails allow customers to get to know Mr. Cooper and the new digital enhancements they’ll be experiencing including access to complete and transparent information about their home loan,” Mr. Cooper explains.
“Mr. Cooper also launched an online mortgage transfer resource center to provide detailed answers and guidance. In addition, we also invested in specialty training for customer service agents. Agents are trained to understand the challenges of new customers, resolve their questions and make them feel comfortable. Newly transferred customers also have access to a special hotline where they can get answers to all their questions.”
The Red Carpet initiative is all part of the rebranding of Nationstar to the friendlier, more approachable business name of Mr. Cooper. Red Carpet is meant to convey a desire to offer a new approach to mortgage servicing transfers. Mr. Cooper says the company is now focused on transforming the mortgage experience by creating a more customer-centric journey through all the stages of buying and owning a home.
“While much of our society is driven by technology, the mortgage servicing space has been slow to evolve to meet the digital needs of homeowners, and this is especially true when it comes to the servicing transfer experience for customers,” explained Mike Rawls, Mr. Cooper, EVP of servicing.
And Rawls said they won’t stop there.
“We’re looking forward to soon unveiling more digital products and tools designed to improve the customer experience over the life of their loan while also allowing Mr. Cooper to create stronger relationships with them,” he added.
How effective is Red Carpet?
After rolling out the “Red Carpet Initiative” while onboarding 1 million new loans in 2017, 90% of those customers had a problem-free loan transfer.
At the same time, Mr. Cooper also recorded a 24% decrease in customers calling with concerns.
In addition, the upgrades to the digital experience led to a 121% increase in autopay registrations and a 58% increase in paperless signups.
When comparing these advances to other stone-age mortgage servicers that don't even offer a bi-monthly mortgage payment option, for example, Mr. Cooper appears well ahead of others in the mortgage servicing game.