Mortgage Cadence launches an innovative new Services Strategy.
A purchase money mortgage market requires lenders to operate at peak efficiency, reducing the costs involved in originating a more complex product. At the same time, they work to exceed expectations for both the borrowers they serve, and their business referral partners. Inefficiencies in any part of the process will put them at a competitive disadvantage.
Making the shift from refi to purchase money originations is already proving to be a challenge for many lenders. After all, most are operating in closed, “vertically integrated” ecosystems where they have limited access to the tools required to improve their vendor experiences and limited extensibility in the core platforms they use to operate their business.
Choosing the right vendor partners will make a huge difference in the lender’s ability to compete effectively in this market. But creating a custom tech stack is not easy when technology partners have already locked themselves into a preferred set of partners.
Changes can be made, of course, but there are price and value challenges to contend with. Few lenders can afford to make such changes on their own. As a result, they struggle to differentiate themselves in the marketplace.
But there is a better approach.
Innovation requires us to visualize a better solution and take action that will get us closer to that ideal state. Lenders want the power to innovate.
They can have it, if they have the power to use modern APIs to connect any vendor they would like to work with into their existing process. This technology is available today, but few if any technology providers make it available to lenders. Older technologies aren’t capable of offering this.
Unless the lender’s LOS is built with an API-first architecture, every change will require a great deal of work and time, regardless of the elegance of the vendor’s API. The LOS, whether its developers intended this or not, becomes the gatekeeper. The accessibility of the LOS will determine the lender’s ability to innovate.
In some cases, technology providers have vested interests in particular vendor partners and provide an LOS solution that makes connections to others difficult. In other cases, it’s just a matter of older technologies that were not written with ease of connection in mind.
The role of the LOS is to complement and facilitate mortgage lending within a larger business ecosystem. That means that the lender’s core system must deliver a dynamic, efficient, industry-leading LOS experience. But what does this mean?
It means providing a highly configurable, dynamic user interface (UI) that will allow lenders to customize the screen flow to suit the roles and users within their organization such that the user sees only what is required, when it is required.
And, of course, it must allow the lender to work with any vendor they want.
When Mortgage Cadence began the process of completely re-architecting our system, MCP, we made the decision to build on an API-first architecture.
That meant creating a broad and highly functional API surface for the new platform that was capable of providing unprecedented access and the ability for lenders to connect MCP with external systems within their organizations.
In the process, we created a new Lender Services layer that is tightly integrated into MCP, the lender’s core system. This provides for a variety of integration options, all of which allow for the lender user to remain on the platform and work in a consistent UI.
This approach is different from anything else available on the market today for two reasons.
First, we are adopting a true “provider agnostic” position in the market, where our interest is supporting lenders doing business with business partners of choice and not on driving lenders to any specific vendor partner.
Second, we are supporting a variety of ways of connecting lenders with service providers, with different levels of automation, and with Day 1 production abilities. This means that a lender can begin working with a new vendor of choice almost immediately.
This is materially different from anything lenders have had in the past.
Before, Lender users would need to ‘swivel-chair’ between their LOS and a vendor portal; and, the integration would be put into a development backlog (for either the LOS or the service provider to build). And, while the wait and build process took its time, the lender user was the one stuck with the inefficient process.
With Day 1 production support, Mortgage Cadence allows a new service provider to register and deliver an integrated service to the lender user, accessible from inside the MCP, on the same day the relationship integration is created.
To find out how you can finally get the power to innovate and lead the industry with the process you want and the partners you choose, contact Mortgage Cadence today.
By Jim Rosen, EVP, Services at Mortgage Cadence
Jim Rosen is EVP of Services at Mortgage Cadence and Vice-President of Product Management at Mortgage Cadence. He has over 20 years of experience in the mortgage software and services industry. He can be reached at firstname.lastname@example.org.
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