The Many Faces Of Mortgage Business Intelligence

It’s not hard to understand the soaring popularity of mortgage business intelligence (MBI) when it comes to increasing production without adding personnel. Time and time again, industry players have proven that persistent situational awareness, an effect of MBI’s constant stream of data, can take any mortgage company from the inconsistent operational focus engendered by periodic reports and spreadsheets to the consistent focus that comes from live dashboards. It’s a shift from reactive to proactive. And it brings with it an increase in capacity that significantly impacts an organizationís bottom line.

But MBI doesn’t stop there. While process improvements in operations generally get the most press because they represent the first phase of most MBI initiatives, subsequent phases can optimize virtually any other aspect of a mortgage business. With so much talk about regulatory issues this year, compliance is another area where MBI can shine. Considering the new short fuse disclosure and documentation timelines coming out this year, MBI will be invaluable in tracking the fields and dates necessary to ensure that all documents and disclosures are processed accurately and within the required timeframe, automatically alerting users if certain loans are in danger of becoming noncompliant.

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For sales operations, MBI can measure loan officer activity to ensure that applications do not get submitted to processing until they’re ready. In much the same way that manufacturing business intelligence systems examine and screen raw materials fed into factories to increase production quality, MBI will measure loan officer performance across a number of weighted metrics, giving a much truer picture of loan officer productivity and profitability than volume measurements alone. The resulting changes in loan officer behavior can further boost operational capacity, as applications that are well qualified and complete are not only easier to process, but faster as well. A shorter loan handle time means less time for the borrower to shop, and more time for processing additional loans.

Secondary marketing may be one of the last places you would expect to see MBI leveraged, but secondary may present the most compelling use case of all. Secondary marketing has become quite complex in recent years as lenders guard against rate volatility with intricate hedge models. Lock policies have tightened to the point where some lenders wonít lock loans for more than one or two hours. And an increased incidence of margin call features on warehouse lines have left many lenders obsessed about their liquidity. These and other fascinations of the evolving secondary market necessitate a high degree of precision when it comes to pipeline management. Itís not uncommon for secondary managers to demand hourly pipeline updates that are simply not possible without mortgage business intelligence.

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Beyond operations, sales, compliance, and secondary marketing, MBI can optimize business processes for correspondent channels, wholesale lending, servicing, and more. While many lenders remain focused on expanding production capacity in operations, MBI is likely to see increased exposure in other areas as mortgage companies deepen their understanding of this technology.

About The Author

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Jon Maynell
Jon Maynell is a mortgage industry veteran, with over 25 years of experience designing, marketing, and writing about mortgage technology. He is currently Vice President of Client Services at Denver-based Motivity Solutions, Inc. He can be reached at 303-721-9000, or jon.maynell@motivitysolutions.com.