What are the characteristics lenders should be considering when they are deciding on technology providers?
In a previous post, I pointed out that there are some technologies that complement a modern LOS quite well. But how should a lender approach the task of evaluating potential partners to provide these tools? Since we work with third party technology developers every day, we can offer some advice in this area.
We are approached almost daily by technology providers who are eager to integrate their tools into our loan origination system. Even with modern APIs, integrating two systems is exacting work and requires a fair amount of internal resources. It’s important that we listen to our clients and expedite their wishes in choosing the right partners. Here is what we look for.
There are many people who think they have a great idea for a new tool to make the lender’s life better. The only people who actually know whether the idea will do so are lenders. I know because I was on that side of the business for many years.
If a technology provider already has users -- or even a few users -- who are seeing the benefits of the new technology, we’re more likely to spend our resources to make sure that more lenders can have access to it through MCP.
We are very fortunate to be living and working in a time when technology is mature and there are many trained professionals who know how to create innovative new technological tools. But most of these human IT resources are working outside of our industry. A tool created for another industry may not work here.
That’s why we always look at the leadership team guiding the prospective technology partner. Applying another industry’s technology to our own can make sense if the leadership team knows how to make any required changes to meet our specific requirements. If the company’s leaders don’t have mortgage experience -- or much experience at all, they probably won’t make a good partner.
We’ve spent a lot of time creating technology that will fully empower lenders to do business exactly the way they want. We are firm believers in an open approach to technology, making whatever tools our lenders want to use available to them. Our modern architecture and robust API layer make this possible.
So, if a technology provider tells us that a lender can only access certain tools if we work with them, it’s not going to be a good fit. We understand that there was a time when hard-coded integrations made it necessary for LOS providers to create best-of-breed offerings for their lender partners. Those days are over.
Today, the lender is in charge of choosing the tools it will use and we support them in putting their vision for their business into production. As you evaluate partners in any part of your business, keep these tips in mind. They will point you in the direction of vendor partners who have your best interests in mind, which makes all the difference.
By Joe Camerieri, EVP, Client Account Management at Mortgage Cadence
Follow us on LinkedIn to be notified when our next article is released.