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Vendors Partner To Help Foster Digital Mortgage Adoption

Pavaso, Inc. (Pavaso), a provider of digital closing and collaboration solutions for the mortgage and real estate lifecycle, has selected eOriginal to support lenders in the digital mortgage process. Specifically, Pavaso will utilize eOriginal’s electronic promissory note (eNote) and electronic vaulting (eVault) services.

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The collaboration between the firms will complete the final steps of the online mortgage process by facilitating a digital closing, which includes the creation, execution and vaulting of an eNote for the delivery to the secondary market. The use of the eNote and eVault will accelerate the time that typically lapses between origination and replenishment of capital.

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“Participants in the mortgage ecosystem are increasingly seeking ways to maximize the benefits of a digital transformation,” said eOriginal General Manager of Digital Mortgage Simon Moir. “By partnering with leaders like Pavaso, we are providing key components for the end-to-end digital transformation of mortgage.”

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eOriginal’s platform delivers a fully digital mortgage and supports every type of digital closing strategy. Available for both Mortgage Electronic Registration System (MERS) and non-MERS loans, the platform has been vetted in mortgage, auto finance and lease, deeded vacation ownership, and marketplace lending. It is accepted by the major rating agencies, issuers’ counsel, top lenders and investors in the secondary markets. The platform can leverage any loan origination system (LOS) or document preparation provider and is designed to be extensible as lenders complete their digital transformation.

“Our partnership with eOriginal, in combination with multiple mortgage lenders, will help complete the circle in the digital mortgage transaction, bringing it one step closer to reality and to meeting today’s consumers expectations,” said Mark McElroy, CEO for Pavaso. “eOriginal is a highly-regarded provider, and its eVault and eNote solutions are powerful. As a result, this partnership will push the broader secondary market to fully incorporating the digital concept as a daily reality.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

STRAMTOR Report Guides Lenders Through Digital Lending

This month in the In Focus section of the October edition of its STRATMOR Insights report, STRATMOR Senior Partner Garth Graham explores the steps lenders should take to make the best decisions about their digital investments. As Graham explains, he has observed that many lenders struggle with a clear sense of the problem they are trying to solve with digital technology, beyond the general idea of “making the mortgage process better.”

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To help lenders as they evaluate digital solutions, Graham offers five tips that can serve as a pre-investment assessment for making the most of digital technologies. Among those tips, he points out that lenders should take the time to define the business case for any investments they are planning. “Without a very specific business case, it is difficult to generate the additional revenue or lower expenses to the level necessary to generate a return on investments in new technology,” said Graham. He also shares important insights on current market realities and future market scenarios lenders should consider as they create a specific business case. “Of course, it’s fine to want the mortgage process to be better in general, but lenders should get very specific about how they want the process to be more efficient, lower cost, and/or provide higher revenue per loan,” Graham continues.

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Also included in Graham’s tips for making the most of digital technologies is his advice that lenders make sure that any solutions they consider will work well for their high producers. The latest STRATMOR Originator Census Survey shows that roughly 40 percent of originators generate 80 percent of the business. “What this means is that if lenders can increase the production of their top-tier originators by 25 percent, this production increase would equal the volume generated by the bottom 60 percent,” said Graham. “With such productivity gain potential, lenders should consider how the digital technology tools they are evaluating can help make top originators more productive.”

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In addition, this month’s report features highlights from the latest STRATMOR Originator Census Survey, which provides lenders with valuable insights into the makeup of their sales force and how it compares to peer lenders. Looking at how originator age varies between retail and consumer direct originators, the survey shows that, on average, consumer direct originators are ten years younger than retail originators. The average age of consumer direct originators is 37 years versus 47 for retail originators. While there are retail originators under the age of 30, their numbers are not proportional to the under 30 bracket in the consumer direct origination space. More Millennial hires are occurring in consumer direct call centers where they work in a centralized environment that facilitates training and coaching.

This month’s report also announces that the next STRATMOR Originator Census Survey will open in January 2018. Survey participants receive a report that includes 15 pages of individualized results. Any originators interested in learning more should contact STRATMOR here.

Click here to download the October 2017 edition of STRATMOR Insights, and to sign up to receive the report each month, please click here.

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

The Future Of Digital Compliance

As everyone talks about the digital mortgage, executives at the Seventh Annual ENGAGE Event held in Denver, Colo, looked to broaden the conversation. They discussed the future of regulatory compliance in mortgage lending in a digital world. Here’s how they see things:

The burning question was: Will the coming digital mortgage reshape compliance? “It already has. Pre-2007 we didn’t think about compliance until after the loan was closed,” said Keith Kemph, Managing Consultant at CC Pace. CC Pace is a boutique business and technology consulting firm which has been serving the mortgage industry for 37 years. Early in Keith’s career, he was a Retail Branch Manager and later Regional Manager with Dime Banks, North American Mortgage. He went on to serve as Director at Merrill Lynch for seven years where he implemented numerous business and technology projects for the mortgage division. The last 10 years Keith has been consulting with executive management teams of mortgage vendors and mortgage bankers nationwide on strategy, process, and technology while successfully guiding organizations through change.

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“We didn’t have to. Now, we have to think about compliance at every step of the loan process,” continued Kemph. “We just went through ten years of chaos as we stitched together technology tools, our loan process and navigated our way through relentless new compliance measures. In our recent survey we found that lenders have formally transitioned from extremely cautious to optimistic. They are less on defense and more on offense, able to focus on the customer experience. However, while lenders feel like they can finally breath, they need to remain somewhat cautious as they map out and implement their digital mortgage strategy.”

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The landscape is becoming much clearer. “The CFPB came out with things like TRID, HMDA, etc. to really set the rules,” said Leonard Ryan, Founder and President of Laguna Hills, Calif.-based QuestSoft Corporation, a provider of automated compliance review software for the mortgage industry. Since the company’s founding in 1995, Ryan continues to oversee strategic planning and the day-to-day operations for the company including business and software development, interface partners, sales and pricing. Under Ryan’s leadership, QuestSoft has received Mortgage Technology’s Top 50 Service Provider Award since 2009 and was named a Top Workplace by The Orange County Register in both 2013 and 2014 out of over 10,000 applicants.

“So, the CFPB is telling you who should get a loan and who shouldn’t. They are setting the rules. In some ways they are reducing the industry to numbers. Now lenders have to work within those rules to differentiate themselves, and that’s where technology can play a role,“ added Ryan.

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As a a result, the future of digital lending compliance will include a greater emphasis on data and bringing compliance as close to the front of the mortgage process as possible. “Digital compliance is evolving into a process that is embedded into every aspect of the mortgage loan lifecycle,” noted Michael L. Riddle, the Managing Director of Mortgage Resources Group, LLC. He guides the teams within the firm that develop and deliver “best in class” compliant disclosure and documentation systems to single family mortgage lenders throughout the country. Mr. Riddle is the Co-Founder and Managing Partner of the Middleberg Riddle Group, one of America’s preeminent mortgage banking law firms and, in that role, has spent much of his 40 plus year professional career providing advice and legal counsel concerning regulatory compliance, enforcement and litigation to clients including banks, mortgage lenders, insurers and related financial service entities.

“Compliance will be essential. Further, compliance will be a key part of digitizing every part of the future loan process,” Riddle concluded. “Compliance will also be increasingly data driven. There will be no escaping embracing a more data-centric approach to mortgage lending.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

The Future Of Digital Mortgage Technology Innovation

High-powered mortgage executives gathered at the Seventh Annual ENGAGE Event in Denver, Colo., to discuss the future of the mortgage business. The discussions that happened were both lively and informative. Here’s how they see the future of digital mortgage technology innovation:

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“We have to move this industry forward by streamlining the process, and cutting the cost to originate,” said Michael Hammond, Chief Strategy Officer at PROGRESS in Lending Association and the Founder and President of NexLevel Advisors. NexLevel provides solutions in business development, strategic selling, marketing, public relations and social media. “This is far more then just hype. This is something that the industry has to do and it is not just about one technology or one platform, it is about coming together as an industry.”

Neil Fraser, Director of U.S. Operations at Paradatec, believes that this will be an evolutionary process. “You don’t need a revolution to convert the document into data that you can believe. You need technology to read the documents, and convert that to data that can be both read and understood. I see that as an evolutionary step in mortgage technology innovation.”

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Paradatec is a mortgage OCR technology organization that automates the data entry operations of large lenders through intelligent document analysis. Neil was Paradatec’s first U.S. employee and has grown the organization every year since the company incorporated here in 2002.

As the mortgage industry embraces innovation to become more digital, everything starts at the point-of-sale. Realizing this fact, a lot of new POS vendors have emerged claiming to offer the true digital mortgage experience. Curt Tegeler, President of WebMax, warns lenders not to be fooled by vaporware as they march toward more digital processes.

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“There’s a lot of buzz today around the digital POS. Why is that? We’ve found that 90% of homebuyers start the process online,” Tegeler notes. WebMax’s digital lending platforms expedites the borrowing process, helps maintain compliance, delivers dynamic online lending tools, and provides a highly innovative borrower experience. “Make sure that the executives behind your POS have deep mortgage experience. You have to understand the market so you know what you’re fixing.”

One area that everyone agrees needs fixing is the appraisal process. If the industry is going to move to a more data-driven process and a fully automated point-of-sale, slower processes like the appraisal need to be addressed.

“Appraisals were really left on the side,” noted Arturo Garcia, the Senior Vice President of Account Management at Mercury Network. He leads all customer retention efforts and strategies for the company, responsible for continuous improvements and increased returns for customer investments and overall satisfaction. “Appraisals didn’t get a lot of attention. However, it’s antiquated to send an appraiser out to the field time and time again. I envision a day when you have a system that can automatically flag issues with the appraisal, fix them or send them right back to the appraiser for fixing.”

The big takeaway from this discussion was that the digital lending process is coming and must touch all parts of the mortgage process in order to make a difference in how loans are done.

About The Author

 

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

New Digital Platform Emerges

Capsilon, a provider of cloud-based digital mortgage solutions for mortgage companies, today unveiled its vision for the future of mortgage production and servicing with the announcement of the Capsilon Digital Mortgage Platform, powered by Intelligent Process Automation.

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Nearly a decade of regulatory changes has dramatically increased the cost of mortgage production and buy-back risk, while squeezing margins from origination to sevicing. And, today’s consumer increasingly expects the mortgage process to mirror other frictionless transactions they conduct online. These industry dynamics have forced originators, loan purchasers and servicers to reevaluate their operations to reduce production costs, ensure data integrity, and provide consumers with a user experience that rivals other highly rated online transactional experiences.

Capsilon’s vision for the modern digital mortgage factory defines a new standard for an end-to-end digital experience that goes beyond just an online application to offer a data-driven digital process that streamlines the mortgage production and servicing process through artificial intelligence-driven automation. The Capsilon Point of Sale (POS) Portals, also announced today in a separate news release, are seamlessly integrated entry points to the digital mortgage factory. By integrating POS portals with the digital mortgage factory, lenders are able to elevate the customer experience throughout the entire mortgage process with increased production velocity and improved collaboration.

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The new Capsilon Digital Mortgage Platform doesn’t replace a loan origination system (LOS). Rather, it integrates with leading LOS’s and uses Intelligent Process Automation to automatically complete key steps throughout the mortgage production process, from the initial loan application to delivery to investors. Unlike Robotic Process Automation, which uses computer programs to mimic simple manual tasks, such as data entry, Intelligent Process Automation uses contextual artificial intelligence to understand which documents, data and rules are required to accomplish key tasks at every step of the mortgage production process, and automatically completes these steps. Human intervention is required only for items that fall outside of established parameters.

“UWM shares Capsilon’s vision of how the mortgage industry needs to transform,” said Mat Ishbia, President and CEO of United Wholesale Mortgage. “We’ve partnered with Capsilon for years and think their technology has been key to helping UWM become the #1 wholesale lender in America.

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“The Capsilon Digital Mortgage Platform transforms the speed, user experience, and economics of the mortgage process,” said Sanjeev Malaney, CEO of Capsilon. “By leveraging the power of the cloud and intelligent process automation, the platform automates existing mortgage production and servicing processes into a modern digital factory that offers a true end-to-end digital process that delights consumers and gives mortgage companies a disruptive economic advantage.”

Built with a rich API set, the Capsilon Digital Mortgage Platform is an open platform with a strong, and growing, ecosystem of integrated complementary technology solutions that enable lenders to build the digital mortgage factory that meets their business goals.

Progress In Lending
The Place For Thought Leaders And Visionaries

Preparing For The Digital Mortgage Revolution

Are you engaged in the digital mortgage revolution? If not, are you prepared to jump in? Just as Google replaced encyclopedias and credit cards replaced cash, technology is transforming all facets of the mortgage industry. From shopping rates online, to finding a lender, to getting approved, the mortgage application process is moving from loan officers’ desks to computer screens, tablets, and smartphones. As the mortgage application process is evolving online, so has the competitive marketplace. The traditional methods that led to loan origination success in the past are less effective today. Lenders are struggling to attract new borrowers, let alone satisfy today’s borrowers’ digital needs.

New competition has emerged from the digital revolution and is quickly capturing market share and revenue from traditional lenders. Some lenders haven’t gone digital yet because they don’t know how to deliver on the digital experience. Others dipped their toes in the digital water but focused only on the user experience and have failed to deliver on a truly digital lending process.

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Even more challenges accompanied the mortgage industry’s move to digital. While regulations and costs increased, loan originations decreased. According to Black Knight, overall mortgage originations dropped by 34% in Q1 2017. The addition of constantly changing rules and regulations, heightened scrutiny, and the risk of costly penalties and fines for non-compliance added overhead for lenders has ultimately increased the cost to originate loans.

Despite these challenges, no one can dispute the value and necessity for lenders to embrace digital mortgages. Lenders that can deliver on the digital lending experience by automating the entire lending process will be able to streamline the application process, decrease origination costs, increase loan officer productivity, and improve the borrower experience. As borrowers interact with the front end of the application process the digital mortgage platform has the ability to verify that information through integrations with mission critical third-party vendors. This key function, one of many digital mortgage perks, allows loan officers to spend less time verifying information, less overhead for mortgage originators, and a simpler and quicker process for the borrower.

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The traditional transaction timeline in the mortgage industry is highly inefficient compared to other industries. The average time for loan approval is 18 days and 50 days to complete the full process. The cost for mortgage companies to pay employees to complete repetitive tasks is about $8,000 and these inefficiencies have been passed onto borrowers. With no desire to transcend their services, the mortgage application process is an unattractive chore and no longer fits in the lifestyle of the technologically adept consumer. Lenders need the most dynamic lending tools to truly deliver on the digital mortgage experience.

What options do lenders have in enhancing their lending platform to deliver on the digital promise?

With online lending, the industry is making a digital transformation by taking the borrower into a world of digitized processing at all stages of the loan lifecycle. More and more borrowers are consistently looking for the digital mortgage experience. With innovation and digitization, borrowers look to complete the 1003 application, digitally in less than 10 minutes with greater speed and accuracy.

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This type of Innovation doesn’t only improve the consumer experience, it also has major bottom-line benefits to Mortgage companies. The digital experience increases the amount of money flowing into mortgage companies.

Today’s digital experience must provide borrowers with a compliant, aesthetically appealing, and user-friendly web solution that includes key program integrations. With the right solution borrowers immediately gain access to a network of Mortgage and Real Estate professionals that can offer a swift online purchasing process. The key aspects that make this experience possible are:

>>Integrations with mortgage critical third-party programs and well documented application program interface (API), which allows for a variety of software components to interact effortlessly. This enviably simplifies and accelerates the borrower process and user experience.

>>A digital graphical prequalification application and 1003 application that streamlines mortgage processes including both the point of sale stage and loan origination.

>>A content management system that accomplishes compliance from the corporate level down. The system is controlled from one centralized location to eliminate reputational risk and any violations of compliance standards.

>>Lead generation and referral partner relationship building tools with the ability to provide affinity websites for mortgage partners such as accountants, charitable organizations, large employer, realtor sites, and more. These websites have mortgage sponsored banner ads and/or applications in place.

>>State-of-the-art technology that considerably reduces the application abandonment rate by catering to the borrowers needs and overall experience.

>>A customer portal, which allows the loan officers to keep all parties, associated with the loan process up to date with the status of the application. Parties included on this are the borrower, title company, co-borrower, and realtor.

>>A tailorable online lending platform that allows lender the ability to easily configure the platform to their specific lending process.

The mortgage industry’s strict compliance standards pose unique challenges that other industries lack when converting to digital. Therefore working with a provider that has deep mortgage experience can be the difference between success and failure. Mortgage origination entails handling borrowers’ sensitive information. In addition to compliance, cyber security measures are vital. This includes applying a secure sockets layer to website domains, obtaining a SOC 2 audit, and partnering with cloud providers and third-party vendors that share your same security standards.

Industry leaders realize that in order to achieve digital mortgage success, it is crucial to automate the mortgage process while delivering a dynamic online lending experience. By implementing today’s most advanced digital platform, lenders will experience increasing market share, protect their corporate brand, meet strict compliance requirements and expand their digital footprint to attract more borrowers.

Over 75,000 individuals in the mortgage industry are benefiting from this type of innovative technology solution. These solutions deliver user-friendly, compliant, security, and efficiency to enhance the digital mortgage experience for borrowers, lenders and real estate agents.

At WebMax, mortgage is in our DNA. With 30-plus years of experience, we leverage our lending know-how to calibrate lenders transition to digital. WebMax’s digital experience expedites the borrowing process, helps maintain compliance, delivers dynamic online lending tools, and provides a highly innovative borrower experience.

About The Author

Curt Tegeler
Curt Tegeler is responsible for providing direction for action to all employees and business initiatives. Tegeler’s main responsibilities include communicating and implementing the company’s vision and mission; leading, guiding, directing, and evaluating the work of executive leaders; formulating and implementing the strategic plan; forming, staffing, guiding, leading and managing WebMax; evaluating organizational success; and represents WebMax in civic and professional activities.

Delivering On The Digital Mortgage Experience

I recently returned from the National Mortgage News Digital Conference in San Francisco. There was a great turnout for the event and a number of discussions regarding what a digital mortgage is and where the industry headed.

“In a live survey conducted during the conference by NMN and Mortgage Cadence, the majority of respondents defined a digital mortgage as a fully end-to-end electronic process, which includes the borrower experience, internal processes, and electronic closings.”

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In addition to defining what a digital mortgage is they went on to state, “almost 14% defined a digital mortgage as having an electronic borrower experience and digital internal processes, and about 10.4% claimed a digital mortgage constituted an online experience for the borrower.”

Most of those surveyed claimed, “they have some, but not all, features available. About 34.4% are still determining the best approach for their specific organization.”

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What I found most telling was “participants cited a number of reasons for not yet reaching their digital mortgage goals, with about 44.1% blaming current internal technology limitations.”

Since Quicken Loans launched that now famous Super Bowl AD for Rocket Mortgage, there has been a great deal of talk, energy, and resources focused on the front end tools and customer experience as it relates to a digital mortgage.

But what many in the industry are missing is that to truly deliver on the digital mortgage experience, companies must automate the entire mortgage process— not just the front end user interface.

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Where companies can gain the greatest ROI when investing in digital is to automate the many manual tasks throughout the mortgage process.

The origination process between originator, processor, borrower, realtor, title agent and all other parties to the transaction is very interactive to say the least. In our highly regulated lending environment, complexity has created additional processes and more room for error. Loan quality takes a hit as more manual checklists have been created, and more data must be validated.

For the vast majority of mortgage lenders, email is the main communication method while the CRM and LOS systems are the central lead and loan repositories. This means leads, preapprovals, loans, business contacts and documents all must be dispositioned in systems that must focus on quality.

The process becomes chaotic with documents in different places, tasks being completed by different people at different times with no real way to manage, track, and communicate properly. This lengthens turn-times by creating bottlenecks at various stages in the loan process.

Communication then becomes reactive rather than proactive. When this happens, even the greatest digital point-of-sale tool will not deliver the digital mortgage experience that today’s borrower is looking for.

The issues are exacerbated with a refi-boom or when purchase season comes along and sometimes we’re forced to throw more people and manual processes at the problem.

So what’s the answer?

To truly deliver on the digital mortgage experience, lenders must not only provide a slick and engaging online point-of-sale tool, but they also must automate the backend mortgage process and communication touch points that impede a truly seamless mortgage experience for the borrower.

That begins with automating manual tasks and communication between parties with a solution that offers mortgage lenders the ability to truly enhance the areas of transparency and accountability that are often overlooked. We must consider automation not only around fulfillment staff and borrowers, but realtors, title agents, financial planners, and all other interested parties involved in a transaction. Keeping all parties in the loop is one thing, but automating that communication in a way that continues well after funding, which will lead to a much higher rate of repeat business.

The Digital Strategy should include ways for system-driven processes to unfold, as we know more about the transaction. This way, team members don’t need to think about what needs to be done, when it needs to be done, and by whom it needs to be done. Leveraging web and mobile ready solutions is key, however anticipation may be even more important.

The more we know up-front, the more we can automate further down the line. With this type of automation, each individual involved in the transaction feels as though a truly personalized service is being provided.

For lenders that want to truly deliver on the digital mortgage experience they must realize the importance of automating the entire mortgage process. Lenders that put forth the energy and resources to automate the entire lending process will be able to overcome the “internal technology limitations” that are holding them back from delivering a truly memorable digital mortgage experience. An experience that delivers enhanced communication throughout the lending process reduces the cost to originate loans and increases lender profitability.

About The Author

Adam Batayeh
Adam Batayeh is President of Lodasoft, the mortgage industry's leading solution to help lenders eliminate complexity and automate the manual workflow involved in the everyday loan process. With more than a decade of experience in the mortgage industry, Batayeh has held executive sales, marketing, product and strategic partnership positions with key mortgage technology providers. He is responsible for overseeing the daily operations, growth of organization, strategic partnerships and long-term strategic vision of Lodasoft. You can contact Adam at abatayeh@lodasoft.com or to find out more about Lodasoft visit website www.lodasoft.com

Delivering On The Digital Lending Experience

As I talk to lenders throughout the country and attend industry events, everyone wants to discuss digital mortgage, which is great. Unfortunately, there is a lot more people talking only about the consumer facing side of things. The shiny apps and very consumer esque experiences seem to catch our eye. While all of those things are good, let’s not forget about how we accomplish a truly digital lending experience – streamlining the entire lending process in a digital world.

For years, even decades, lenders met with clients in person, put pen to paper, and shifted documents from person to person. Now, the entire process is being streamlined across the digital landscape. As a lender, if you hesitate to deliver on the digital experience, which includes not only the streamlining of the borrower application, and loan origination process, but also all of the back-office processes, competitors will leapfrog you in obtaining highly sought after new borrowers.

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As a result, lenders must adapt accordingly or be left behind. However, regulations inundate the mortgage industry. Loan officers need to comply at every step of the loan origination process. Lenders can’t merely throw a bunch of technology at their loan officers and hope to succeed. They need technology that streamlines the loan process while complying with regulations and protecting the borrower.

That’s why mortgage expertise is so vital in providing a quality digital mortgage experience. We understand the rules and regulations because we’ve been in the industry for so long. We realize all of the in’s and out’s such as, handling fluctuating rate environments, new HMDA requirements, UCD changes and the constantly rising cost to originate. Technology should augment and improve the digital mortgage experience, not override it and threaten its integrity.

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Mortgage lenders that purchase the new online lending app from a provider that does not have deep mortgage experience to properly handle compliance are like a new shinny car that has no engine; lenders can not truly deliver on the digital mortgage without compliance. If they try, they face regulators and the potential of fines and penalties for failing to comply with industry standards.

Before the 2008 financial crisis, lenders and brokers alike-approved mortgages for just about anybody. After the fall, lenders faced strict scrutiny and were required to verify borrower information. Often this information comes from a multitude of third-party sources. While today’s technology can connect lenders to third parties with ease, mortgage experience determines which third party affiliates provide the most accurate, seamless, and secure data exchanges.

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Applying for a mortgage online leaves a lot more room for error. Digital lending solutions can pre-qualify a borrower in minutes. Thus, lenders must assure that their approval mechanisms produce quality mortgages. Assuring the production of quality mortgages takes mortgage expertise, not just tech savvy apps.

Although mortgage lenders must meet their borrower’s digital needs, the mortgage comes first. Bringing compliance, integrity, and credibility to digital lending entails better loans, happier borrowers, and more productive employees. Technology streamlines the mortgage process. Mortgage experience structures the digital lending process. It makes the digital mortgage possible.

About The Author

Curt Tegeler
Curt Tegeler is responsible for providing direction for action to all employees and business initiatives. Tegeler’s main responsibilities include communicating and implementing the company’s vision and mission; leading, guiding, directing, and evaluating the work of executive leaders; formulating and implementing the strategic plan; forming, staffing, guiding, leading and managing WebMax; evaluating organizational success; and represents WebMax in civic and professional activities.