Here’s What The Future Mortgage Process Will Look Like …

As we’ve been reporting on, for the sixth consecutive year, PROGRESS in Lending Association hosted its groundbreaking ENGAGE Event designed to engage the mortgage industry to discuss and find solutions to so many pressing  industry issues. This was a frank and thorough exchange of ideas and tips about how to solve the problems that face the mortgage industry.  We reported on what the speakers said about the future of mortgage regulatory compliance, the future of mortgage technology innovation, and today we’ll tell you how they see the future of the mortgage process itself. Here’s what they had to say:

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“The problem is that you e-sign here, submit conditions here, and you still get calls,” said Lionel Urban, CEO, founding partner and chairman of the board at PCLender. “That shouldn’t happen. You should be using as much machine-readable data as possible coming straight from the source, not the borrower, and that way the processor will only deal with exceptions. that’s how the process should work.”

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From a lender’s perspective, Joe Dahleen, vice president of consumer lending at Axia Home Loans, points out, “You have to get to the data upfront. We as lenders should be able to verify the borrower, their income, their bank statements, etc. electronically from the source. Also, we are getting things like the appraisal and other information as XML. Similarly, we are being required to deliver more to the investor as XML. So, technology vendors need to offer lenders a way to easily store and search all of that XML because the LOS doesn’t do that today.”

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Meanwhile, Rebecca Walzak, founder of rjbWalzak Consulting, wants technology to focus more on risk so the mortgage process of the future produces quality loans 100% of the time. “Where is the technology to help lenders mitigate risk?” she asked. “I’d like the mortgage industry to be a real industry instead of just a follower of our peers or the regulators.”

Brian Koss, chief storyteller, executive vice president, national head of production at Mortgage Network, agrees.”Making changes in reaction to an outside event hasn’t worked,” he argued. “We, as an industry, have to start being proactive. We have been so busy just trying to comply with the latest rule that we haven’t stopped to take a breadth. We have to look at the process in a new way. The cost to originate a loan continues to go up, so what should we do? We have to hold the line and continue to fight to genuinely improve the process so we can lower cost. That has to be the focus of every lender.”

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