The surprising future of mortgage technology

Talk to any mortgage technologist about the way forward for the business and two topics will immediately pop up: vast knowledge and smart automation. I know this because that’s what we’ve been talking about in our business for the past decade. While vast knowledge and good automation are still at the fore of those conversations, the main goal has evolved.

When the idea of ​​mass knowledge first emerged, it was primarily a vision based on the need to centralize data so that lenders could run analysis to get an idea of ​​the character of their growing companies and the changing calls of consumers. .

While we mentioned the key points, other industries, such as healthcare, manufacturing and prescribed medicines, were building robust API infrastructures to pool data into vast knowledge facilities. At this time, while the loan business has the technology to help with this, we are still in the early stages of figuring out how it should be used.

We have done very well on the automation aspect. The custodians of very complex monetary instruments to risk averse traders under the watchful watch of presidency regulators have given us a course that must be compliant with investor and regulatory compliance requirements. Uniformity is an ideal breeding ground for automation.

With the advancements we are seeing in the robotics courses in Synthetic Intelligence, Machine Study and Automation, we are now experts in configuring our technology to meet the changing needs of lenders.

However there is still a problem.

Over the years, we have used almost all our options right up to the entrance of the loan origination process. The objective has been primarily to enhance the effectiveness of the core process from the borrower’s point of view, to better facilitate the customers in the most intimidating way.

Almost the entire lender’s information over the years has been focused on Level of Sale (POS). While there was some increase in borrower satisfaction and front-end effectiveness, lenders have not offset these investments in financial savings on building mortgage assets.


Worse yet, because we are not leveraging the massive knowledge potential in our business, for the reasons we are going to focus on this article, a lot of the information posted at the gateway is not being properly adopted. and used and its results at the back-office have been negligible.

As we look at the long run, vast knowledge and good automation will propel our improvement efforts, although the focus of upcoming improvements will evolve, and that could change every little thing.

Lending information out of focus

Focusing our efforts on leveraging vast knowledge and smart automation at the entrance to the mortgage origination course that made sense in the first place when the mortgage business was ushering into the digital age.

In spite of everything, if we get to more debtors more effectively, lenders reduce the likelihood that they’re going to lose the borrower to one of the many other lenders they used simultaneously. .

Nevertheless, back-office efficiencies were conceived as the result of electronically gathering the entire borrower’s monetary data in a mortgage origination system (LOS) – revolutionary of the large-scale knowledge rules tool for the mortgage loan life cycle. Result – by no means realized.

Part of the clarification capacity from growing digital debt hasn’t been fully translated into the back-office, and still isn’t fully translated, due to the belief that with the widespread adoption of any new technology Comes. Debtors were not comfortable handing over their credit to the pledging authorities or the resources. In other cases the loan officers did not believe in the technology.

Although LO sent mortgage software and disclosure paperwork electronically and accepted the debtors’ digital signatures, he also presented them with a pile of paperwork to keep them safe. When it came time to collect the paperwork, Lo reverted to the safety of his knowledge, which is paper-centric.

So, instead of a spontaneous huge data switch from the borrower’s other financial programs to the LOS, the mortgage processor was given a pile of paperwork or photographs. The front office provided a modern 21st century app, but the bank’s back-office workers were still operating in the same handbook manner they had before.

At this point in time, we are operating in a business where best-of-breed digital applied sciences have been tested by the nation’s largest investor, but lenders adopting Day One certainty options are still in the single digits.

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