What technologies are top originators investing in to prepare for the upcoming market?
There was a time when lenders would avoid purchasing new technologies when loan volumes were high. They just didn’t have the time to find, vet, contract and install new technologies when they were busy chasing efficiency and market share. Lenders look at things differently today.
Now that technologies are easier to implement and integrate into legacy systems, lenders must choose between sticking to older tools that can’t deliver the efficiency they need to win more business, or to invest in new tools in a busy market. Increasingly, they are choosing the latter path.
We saw this trend really take hold about 3 years ago when the first digital mortgage conferences began springing up around the country. Investors begin investing heavily, primarily in Point of Sale technologies. Many of these tools didn’t live up to the hype.
Today, many lenders are looking at a new set of tools that are much more likely to pay high dividends because they take full advantage of the latest artificial intelligence and machine learning technologies.
Most of the lenders we are visiting with now are very interested in the new document management technologies that are being built into the leading loan origination and servicing platforms.
It’s easy to understand why. These lenders are routinely tasked with processing documents in bulk provided by their third party originator networks. As these lenders scale up their businesses, this job becomes onerous. They often end up with rooms full of processors staring at monitors and trying to match up the right docs to the right loans. Mistakes are costly and time consuming.
With the right automation, this job becomes manageable. Better than that, efficiency and loan quality both increase. Loans move through the system faster so borrower satisfaction also rises.
Finally, and perhaps most significant in a market where loan volumes will eventually be falling, these tools make it easier for third party originators to get deals into the system and get them closed on time. That will definitely pay high dividends in the coming market.
By Joe Camerieri, EVP, Client Account Management at Mortgage Cadence
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