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February 3, 2022

The Critical Importance of Good Analytics

What are lenders doing with consumer data and how does analytical information benefit the mortgage industry?

Mortgage lenders are literally swimming in consumer data. Critical for loan underwriting and processing, this information is used for HMDA reporting but then often left to grow stale deep within the lender’s database of record.

How much is this information worth? A great deal, if you have the analytical power to use that data. Just look at the recent acquisition of Real Capital Analytics by MSCI Inc., a commercial real estate information company, for $950 million in cash.

Now that next generation loan origination systems (LOS) are building business intelligence (BI) into their platforms, residential mortgage lenders finally have the tools to do much more with the data they already own.

I wrote about this for MBA Newslink. In my article, I pointed to three ways lenders are making the most use of their data using these new technologies.

How lenders are using their data now

Dealing effectively with a fast-changing market is only possible when data analysts can pull real business insight out of big pools of data. Fortunately, we have access to the technologies to help lenders get this job done. Here are three ways lenders are making use of them.

Borrower Data

The more the lender knows about the borrowers their institution attracts, the more surgical they can be about the loan products they offer and the service expectations of the consumers they serve.

Production Data

How long is it taking to originate? How much is this costing the institution to get the loan closed and where are loans falling out of automation or requiring human intervention? These are the insights that can guide executives to create or update the technology road map capable of helping the institution reach its goals.

Quality Control Data

Knowing where problems are occurring in your process will give you clues as to where automation is falling down and where you may need a better solution. QA/QC has never been more important.

The tools powering modern mortgage BI

We’re seeing more technologies coming to bear on large pools of data, but it’s hard to beat the industry leaders. That’s why we built Microsoft Power BI into our next generation LOS.

It takes powerful tools like this to make sense out of all of that information lenders have at their disposal. Lenders have the tools, now I expect them to be seeking out experts in business analytics to use them. These professionals have been in high demand in our business for some time. I predict they will become even more valuable in the future.

Find out more about this topic by seeing my article in MBA Newslink.

By Joe Camerieri, EVP, Client Account Management at Mortgage Cadence

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Mortgage Cadence:
Megan Martin
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