3/10/2010 10:55 PM
In 1908, Ford produced the Model T and made millions selling it at an affordable $805. Five years later he perfected the moving assembly-line, which allowed him to exponentially increase production of his cars at a much lower cost. By 1913, the price of the Model T was reduced to just $290—nearly a third of its original price just five years before. Ford’s business model was pure genius and revolutionary, and it forever changed our country’s and our world’s economy.
So what does this have to do with mortgage lending? Everything. Mortgage processing is the antithesis of Ford’s assembly line. Imagine if Ford had wanted to capture more of
America’s pocket book by sending a vast array of products down the same assembly line: first down the line was a Model T, then a toaster, then another Model T, then a washing machine, another Model T, and then a radio. You get the picture. It’s absurd. Yet that kind of random assembly line epitomizes the mortgage industry. As mortgage companies face an increasingly shrinking market, they continue to expand their product line to appeal to a broader group of borrowers. Such randomness is analogous to an assembly-line mixed with
toasters and automobiles.In contrast, Box Home Loans has copied Ford’s highly specialized assembly line.
We do one kind of loan for one kind of borrower, and we do it again, and again.
We opted to shrink our product line to better serve a minority of the population. By saying “No” to the masses, we are able to serve a few customers at an amazingly low price with astonishing speed and with legendary customer service.
And like Ford, who introduced a very affordable Model T in 1908 for $850 only to sell it for a third of that price five years later, Box Home Loans is fanatically driven to continually reduce the price of getting a mortgage. Our costs are currently a third of what the competition offers. Imagine how low they’ll be in five years!