Technology and process--the keys to winning in today's mortgage market.(Executive Suite)

While our industry has begun making some progress incorporating technology into our businesses, we still have a long way to go.

Consumers want choices in how they interact with their lender, and they are demanding ease, convenience and clarity around the process--all with a personal touch. Without technology, these things are unachievable.

The days of shuffling papers and living in a subjective processing world are long gone. To survive in today's market, you have to be part mortgage banker, part legislative policy expert and part technologist--and not necessarily in that order. Outside of having amazing people in your company, great technology coupled with strong processes stand head and shoulders above the rest as the single most important asset in a mortgage lender's toolbox.

As we know, the mortgage process is very complicated, and always changing. There are countless variables that impact the outcome and service received by our clients. Complicating matters, to this day many lenders still rely on a subjective, paper-intensive system to work a loan through the process.

We've all cringed while reading articles about servicers losing documents as clients try to go through the modification process, or the lengthy turn times clients had to endure during the refi boom of 2010.

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These unfortunate scenarios can be avoided by implementing the right processes and workflow that well-designed technology can create.

But investing in technology alone will not suffice. You can't sign a check, plug in some wires and expect to see your business transformed. You also have to invest in creating processes to best leverage that technology. At Quicken Loans, we have created several specialized business process teams, each of which are adept at technology and work closely with our information technology (IT teams) to develop workflows and systems around all aspects of our loan process. It is this partnership between, and commitment to, technology and process that will allow mortgage lenders to not only survive, but to set themselves apart from the pack.

We've learned this is a recipe that works, thanks in large part to nearly 15 years of trial and error. Our company was fortunate to recognize the importance of technology and the Internet early on. I still have the e-mail that our founder and chairman, Dan Gilbert, sent in March 1998, challenging us to embrace technology and the Internet. Gilbert saw then what many are just realizing now: Technology is a game changer.

Whether you buy technology off the shelf or build it yourself, as we decided to do, we must recognize that technology's main purpose is to make our clients' lives easier and our team members' job functions more clear and objective.

Many times, lenders only focus on how technology can save them money. While it can create some savings, the most significant benefit technology can provide is a fantastic client experience.

One example of this is electronic signatures, otherwise known as eSignatures. By being able to deliver application documents to consumers online and allowing them to review and use a simple click of a mouse to digitally sign them, lenders can cut days off of cycle times. This also provides convenience for the clients, who can log on from anywhere in the world to approve their paperwork. By allowing clients to upload their supporting documents (income statements, asset statements, etc.) to a secure website, both clients and lenders can be sure that the documents are received.

By employing a properly programmed scanning and indexing system, a lender can convert paper documents into an image file. Once these documents are imaged, multiple people in a lender's back office can work on the file simultaneously, thus reducing the redundant steps of passing paper around and ensuring the documents are viewed, reviewed and stored for future reference.

Another area that creates tension and noise for clients is visibility into the mortgage process and where they are in that process. Many lenders still rely on phone calls, e-mails or, in some shocking cases, don't update clients at all.

Technology improves the client communication process and provides a much better experience. By utilizing a secure portal that is integrated into the lender's origination system, clients can view the progress of their loans in real time. Creating this isn't easy and requires significant planning and programming, but the win is substantial for both the client and the lender.

Cycle times in 2010 for many lenders averaged 90 to 150 days from start to finish for even the most qualified of borrowers. At Quicken Loans, we were able to maintain cycle times of 30 days on average, even though our volumes tripled. We wouldn't have been able to do that without a clear investment in, and dedication to, technology and the objective process it creates. That process and technology led many of our peers to reach out to us for help in providing their clients with a better experience.

Technology and process can also be invaluable tools when addressing compliance issues in your business--as demonstrated over the past two years with the advent of new Real Estate Settlement Procedures Act (RESPA) rules, mortgage banker licensing regulations and the soon-to-be-clearer requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) went into play in 2010, and with that came our daunting task of licensing 1,500 mortgage bankers in 50 states. As a 50-state, centralized non-bank lender, we had to figure this process out--and technology was key to making it happen.

With the help of our technology, legal compliance and training teams, we wrapped our arms around the rules, developed training programs, implemented systems to track licensing and added logic to our origination system to ensure our clients were being routed to mortgage professionals licensed in their states.

The government essentially created a barrier of entry to just about every non-bank multi-state lender that we--with technology, brainpower and more than just a little bit of manpower--were able to crack.

And the need to leverage technology and processes to deal with the regulatory environment will only continue to grow. We are just beginning to get a glimpse at the compliance demands created by the Dodd-Frank Act. Those in our industry who have the technology, processes and people in place to quickly become compliant with these rules will find themselves with a significant advantage over their peers.

The lesson in all of this is to continue innovating. Don't get mired in the "this is the way we have always done things" mindset. At Quicken Loans, we have an ISM (our name for a guiding principle) that challenges us all to be "obsessed with finding a better way."

That is my challenge to our industry. Be obsessed with harnessing the latest technology and using it to amaze homeowners and homebuyers alike. Be obsessed with transforming the image of our industry.

Bill Emerson is chief executive officer of Detroit-based Quicken Loans Inc., the nation's largest online retail mortgage lender and one of the five largest overall home lenders in the country. He can be reached at billemerson@quickenloans.com.