Pennymac TPO exec on how the company’s tech is helping streamline the mortgage process
It’s a new day, a new opportunity for mortgage lending. Pennymac TPO, a top wholesale lender driving a customer-focused business powered by a tech-centric process, touts its success to its tech-forward, human-focused approach. This successful team is led by powerhouse industry veteran Kim Nichols, Senior Managing Director of Pennymac TPO.
“We have a solid tech foundation – it’s highly automated and provides a data-driven workflow for a streamlined and efficient mortgage lending process,” Nichols told Mortgage Professional America. “We introduced POWER+ by Pennymac TPO, our next generation broker portal, which was designed by our own experienced tech team and business experts in collaboration with our broker partners to bring more speed and control, delivering an exceptional client experience.”
Nichols emphasized that it’s a people business, and Pennymac TPO’s actions show it. Evidence of that priority lies in the fine details of their team structure. “We have a differentiated sales team, that consists of both outside and inside teams,” Nichols explained.
“Our account executives have, on average, 15 years of mortgage experience. They’re accessible; extremely knowledgeable; they work through scenarios with loan officers; they help them with pricing structures and they also assist in developing strategies to help our partners grow their business. So, these are really seasoned consultative professionals.”
That level of experience and focus on strategy are essential to moving past hurdles amid an economic climate marked by fluctuating rates against a backdrop of inflation.
Additionally, Nichols provided meaningful ways that mortgage brokers and loan originators can engage with borrowers and referral partners, while generating new business in light of market conditions.
“Position yourself as a solution-focused advisor: address market challenges and share your thoughts and ideas to help bring more buyers to the table,” Nichols continued. “The industry is shifting to a buyers’ market and FHA is going to be an important product for you and your realtors. With approvals up to 57% debt-to-income (DTI), 3.5% down payment, FHA is the most compelling affordable product out there. Your realtors will need to get familiar with FHA again, and that’s where you come in.”
The opportunity to engage new customers can be achieved – even amid choppier waters devoid of the calming influences of refinance activity and a steady purchase market – aided by Pennymac TPO’s array of products, Nichols suggested. “We have strong product and program offerings, which means more options and opportunities for our partners to meet the needs of their borrowers.
“Adjustable-rate mortgages (ARMS) aren’t for everybody, but there are sweet spots in ARM pricing right now, where you can advertise initial rates ranging from 6.125% to 6.375%. We also rolled out a temporary interest rate buydown program with multiple options, including a 3-2-1 buydown.
“Temporary buydowns can even be combined with certain ARM structures. As an originator, you need to bring specific strategies that position you as a mortgage expert. With solid technical solutions, a good LO has the ability to bring buyers back into the market which offers real value to your referral partners,” Nichols added.
The market slowdown offers opportunities. “It appears originators and brokers are using this time to build their toolbox and gain new technical knowledge,” she said. “They’re taking time to reevaluate their lender partners, establish new relationships and align processes.” Other brokers are getting their VA certification and taking another look at FHA – for which Pennymac is a top lender.
Pennymac itself recently has pierced through the doldrums, creating quite the industry buzz with its high-tech POWER+ broker platform unveiled at the National Association of Mortgage Brokers (NAMB) conference in Las Vegas from Oct. 7-10 where MPA caught up with Nichols.
Nichols gave MPA a sneak peek into POWER+ in January before the product’s official launch. True to form, the lender built the platform only after securing input from that all-important segment: Customers. “We developed POWER+ by truly listening to the voice of our customers – our brokers,” Nichols told MPA at the time.
“We took two approaches. We had focus sessions with key broker partners and extracted detailed feedback from various users, such as loan officers, processors, and broker owners. For example, our brokers’ feedback influenced our guided workflow, which made the platform intuitive and efficient. They asked for transparency, so there’s a loan tracker to see where they are in the process, and an activity log that traces every request. And that’s just the beginning.”
At the NAMB conference, Nichols provided MPA with another glimpse at POWER+ and its future capabilities. “We will iterate on POWER+,” she said. “We are constantly evolving its features and functionality. We’re deepening our commitment to wholesale and supporting brokers in an immense way, through our investments in people and technology”.
It's been said that what happens in Vegas stays in Vegas. But it is safe to say POWER+ by Pennymac TPO will extend far beyond the Las Vegas strip.
