Magazine article American Banker

Banc One's Mortgage Unit in Big Automation Push

Magazine article American Banker

Banc One's Mortgage Unit in Big Automation Push

Article excerpt

Banc One Corp.'s mortgage subsidiary is pursuing a trio of automation initiatives aimed at substantially increasing profitability.

J. Albert Smith Jr., president of Banc One Mortgage Corp., Indianapolis, said the technology projects -- which involve consolidating processing centers and installing new systems for mortgage bankers and customer service representatives -- will eventually cut the unit's annual operating costs by more than $20 million.

The planned savings are sizable, considering that the subsidiary expects to report a $13.1 million contribution to Banc One's 1992 earnings.

"Its a fundamental change, almost a cultural change," Mr. Smith said.

Originations and Servicing

The initiatives will affect both Banc One's mortgage origination and servicing operations.

In the mortgage origination area, Banc One this year is giving laptop computers made by Compaq Corp. to 350 bankers, who will use the machines to fill out mortgage applications while on the road.

The machines will also be used to to send applications electronically to central computers, and to call up interest rate and loan status information.

Banc One this year is also consolidating its mortgage origination processing centers from nearly 90 to about 16.

Savings Put at $300 a Loan

Combined, these initiatives will cost a few million dollars, Mr. Smith said. But they will cut loan origination costs by about 25%, or roughly $300 per loan, he added. …

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