Mercantile Bank / CSS Case Study

Mercantile Bank Transforms Home Equity Lending with CSS Partnership

Overview

Mercantile Bank, the largest bank headquartered in Michigan, operates with more than 40 branches across the state and nearly 700 employees, with 70 of those employees specifically focused on Mortgage. With approximately 200 mortgage transactions monthly and nearly $500 million in annual volume, Mercantile sought to enhance its lending processes, particularly in home equity. That’s when the bank partnered with Corporate Settlement Solutions (CSS) to streamline operations and improve efficiency.

Challenges

Previously, Mercantile Bank handled home equity loans (HELs) through the mortgage lending division and home equity lines of credit (HELOCs) through its consumer lending division. However, this structure resulted in a fragmented home lending process. The bank also faced inefficiencies with its existing appraisal alternatives, needing a middle-ground solution between AVMs and full appraisals.

CSS' Solutions

Mercantile Bank transitioned their home equity line of credit business into the mortgage division in March 2024, with CSS playing a key role in their operational revamp.

Key solutions included:

  • Title Services: CSS provided property reports and title search functions.
  • Appraisal Services: CSS offered drive-by inspections and hybrid appraisals, bridging the gap between low-cost valuations and full appraisals.
  • Tech Integration: Seamless integration with the bank’s loan origination systems and appraisal ordering platforms created streamlined workflows and enabled consistent processes for loan officers.

“CSS offers an impressive range of products and provides some of the best customer service I’ve experienced,” said Jodi Lopez, Mortgage Operations Manager, at Mercantile Bank.

CSS offers an impressive range of products and provides some of the best customer service I’ve experienced.

Jodi Lopez

Mortgage Operations Manager Mercantile Bank

Results

Since partnering with CSS, Mercantile Bank has achieved:

  • Efficiency Gains: By consolidating HELs and HELOCs into their mortgage workflows and integrating CSS’s tools, the bank improved process consistency and reduced operational complexities. The bank is now averaging 20-30 home equity transactions a month with title turn times under two days and valuation turn times under three days.
  • Customer Savings: CSS’ hybrid appraisal solution provided an affordable alternative to full appraisals, reducing valuation costs for the bank by more than 50%.
  • Improved Service: CSS’ quick response times and proactive approach resolved any issues quickly and effectively.

“Our loan officers, including top producers, have nothing but positive things to say about their experience with CSS. Their turn times are consistent, and they always deliver on their promises,” Lopez noted.

Conclusion

Mercantile Bank’s partnership with CSS has significantly transformed its home equity processes, creating a more efficient and streamlined operation. By integrating CSS’ appraisal and title solutions into their mortgage workflows, the bank eliminated the need for multiple ordering platforms and inconsistent processes. CSS’s hybrid appraisal solution bridged a critical gap, providing a cost-effective and faster alternative for borrowers.

“The efficiencies we’ve gained, especially in home equity processes, have been remarkable. Our sales team can now confidently offer these products, knowing we have the right tools and expertise in place,” said Lopez.

This collaboration has empowered Mercantile to increase productivity, close more loans and offer improved service to its customers—all while maintaining cost savings and operational consistency.