As the industry prepares to gather for the upcoming MBA National Technology Conference in Chicago, STRATMOR Senior Partner Garth Graham presents an analysis of two years of Technology Insights Survey results data to assess the readiness of the current loan origination system (LOS) landscape for the coming age of the Digital Mortgage.
“When looking at STRATMOR Technology Insight Survey results data, we see lackluster satisfaction with LOSs,” said Graham. “That’s not surprising – it’s old news. But when considered in the light of the pressing demand for digital mortgage capabilities, the areas in which today’s originations systems fall short become even more glaring. When STRATMOR is consulting with clients – typically within the context of reengineering or establishing new origination platforms – we work toward implementing specific digital mortgage functional capabilities organized primarily around sales and fulfillment processes. Very few can currently be found in a commercial, off-the-shelf LOS. Rather, they’re most often specialized applications that need to be hooked up to the system. Where they are currently available, satisfaction levels pale even behind those of LOSs in general.
“To be fair,” Graham continued, “the effectiveness of any LOS depends on both the system’s functional capabilities and the skill with which the system is deployed. Regardless of where the fault lies, LOS systems are not delivering what they could. This only becomes more pronounced when one considers the functional capabilities necessary for the digital mortgage process. In light of STRATMOR’s Technology Insight Survey data, technology vendors need to carefully consider where they are in the mortgage technology ecosystem, and how they will compete in the future, because the status quo as of today is insufficient. Likewise, lenders need to determine their current state of technology and from there, develop their own individual roadmap to the future.”
The 2017 STRATMOR Technology Insight Survey launches the last week in March and will include expanded questions on LOS vendor support and lender opinions on cybersecurity. To participate, click here.
This month’s report also looks at MortgageSAT borrower satisfaction data to help quantify the relationship between certain practices related to the mortgage closing and levels of borrower satisfaction. Seemingly minor events – making contact with the borrower prior to closing, or having the closing begin on time as scheduled – can have a significant impact on borrower satisfaction. Among the majority of borrowers who are contacted prior to closing, for example, average satisfaction scores a 93 out of a possible 100. For the roughly eight percent of borrowers who are not contacted, satisfaction plunges to just 61, a 32-point differential. Likewise, for the 93 percent of borrowers whose closing starts on time satisfaction ranks a 92, as compared to a score of 76 for those whose closing started late.