Posts

And The 2018 Winners Are …

Prominent mortgage executives gathered to see who the Executive Team of PROGRESS in Lending named the top industry innovations of the past year at the Eighth Annual Innovations Awards Event. This honor is the Gold Seal when it comes to recognizing true industry innovation. All applications were scored on a weighted scale. We looked for the innovation’s overall industry significance, the originality of the innovation, the positive change the innovation made possible, the intangible efficiencies gained as a result of the innovation, and the hard cost and time savings that the innovation enables industry participants to achieve. The top innovations winners are:

Lodasoft

PROGRESS in Lending has named Lodasoft a top industry innovation. To address the CFPB requirements of improving the borrower experience, the first big wave of innovation has come out of Silicon Valley. Hundreds of millions of dollars have been invested in the consumer facing aspect of the borrower application. The term “digital mortgage” has been coined and a flood of shinny new mortgage websites and apps have been created to deliver borrowers an Amazon type borrower experience. However, the majority of dollars invested, have focused almost solely on the online application for borrowers. The problem is that mortgage lending is significantly more complicated than just a shinny new app. The right digital mortgage platform helps to drastically reduce the chaos in daily lending processes while improving communication to help lenders close more loans faster. Therefore, in 2017 Lodasoft introduced its truly innovative “Digital Mortgage Platform” featuring Intelligent Loan Manufacturing to address these industry challenges head on.

Capsilon

PROGRESS in Lending has named Capsilon a top industry innovation. A truly innovative mortgage process means more than borrower-friendly loan selection and document submission, it is an end-to-end solution that keeps all stakeholders in the loop throughout the process. In 2017, Capsilon introduced Point of Sale Portals (POS), enabling the creation and delivery of quality loan packages that streamline every process step from application to closing. Capsilon’s POS Portals are powered by Intelligent Process Automation to supercharge loan production from intake to delivery of complete and compliant loan packages. This is an industry first, dramatically improving loan quality and speed, while drastically reducing production costs. Lenders are pressed to meet the challenges of production, compliance and profitability, as well as soaring borrower expectations. Instead of simply streamlining the traditional loan process, in 2017, Capsilon launched Point of Sale Portals that are fully integrated with its patented back-end technology to deliver on the promise of a true digital mortgage.

WebMax

PROGRESS in Lending has named WebMax a top industry innovation. According to Inc. Magazine, Millennials make up 66% of first-time homebuyers and 66% of them plan to buy a home in the next 5 years. Moreover, the same report found that Millennials associate home ownership with the American Dream more than any other generational demographic. The October 2017 composite forecast of Fannie Mae, Freddie Mac, and the Mortgage Bankers Association for 2017 mortgage origination volume is approximately $1.8 trillion. If Millennials compose 50% of this mortgage volume, and two-thirds of them apply online via digital applications, that represents $600 billion in digital mortgage origination. This number is massive. Better yet, it’s conservative. Millennials expect mobile-responsive mortgage lending sites and applications with a responsive layout from their potential lender. They want their mortgage application to be as easy as buying a t-shirt from an online retailer. Therefore, WebMax developed its innovative point-of-sale solution in 2017, called START, to not only meet the demands of borrowers, but to exceed their expectations and revolutionize the entire process. With START, WebMax provides a single location for the loan to exist for both the borrower and loan officer. There’s no shifting documents back and forth or waiting for verifications. START’s integrations to mission-critical third parties allows for the technology to do the work, streamlining workflows, reducing costs, and minimizing frustration.

Paradatec

PROGRESS in Lending has named Paradatec a top industry innovation. Other OCR solutions typically expect relevant data points to consistently appear in the same locations (or ‘zones’) on a document. If the data shifts due to changes in layout (again, think of bank statements), the zone-based approach will fail unless another layout template is created, making for a greater administrative burden with these solutions. A high volume, scalable OCR automation initiative requires the flexibility of Paradatec’s Advanced Mortgage OCR solution to process an unlimited number of document layouts without needing to develop specific templates for each layout variation. This capability is unique to Paradatec and a vital feature for creating an effective unstructured document classification and data capture solution. Paradatec’s Advanced Mortgage OCR solution is designed to make mortgage lending faster and more accurate. In 2017, Paradatec’s Mortgage OCR solution processed over 1,500,000,000 images (representing over 2,500,000 loans), helping lenders and servicers streamline their onboarding and compliance obligations.

Asurity Technologies

PROGRESS in Lending has named Asurity Technologies a top industry innovation. In 2017, MRGDocs was acquired by Asurity Technologies and introduced MRGDocs’ cloud-based platform which revolutionized the security of its dynamic document generation software featuring a secure system infrastructure to increase the protection of consumer data and deliver safer, faster, and more user-friendly systems while maintaining the content and support quality that has long been the hallmark of MRGDocs’ services and document packages. This solves for several mortgage industry challenges: the costs to secure big data, protecting the myriad of personal identification information collected, and managing compliance through a hyper secure platform. In 2017, MRGDocs built a comprehensive data security capability on a robust foundation that allows for the type of growth and expansion needed to serve even the largest of financial institutions, implementing a hyper-converged, virtual server platform with 24/7 SIEM-managed security monitoring.

STRATMOR Group

PROGRESS in Lending has named STRATMOR Group a top industry innovation. MortgageSAT is an online customer satisfaction measurement program that allows consumers to provide direct feedback on their satisfaction with the mortgage process, and provides lenders actionable insights from the results, all available via an online portal. Put simply, it’s Business Intelligence based on consumer insights. Why did STRATMOR create MortgageSAT? For many years, mortgage lenders have struggled to capture actionable feedback from borrowers by means of post-closing email or closing-table-completed surveys. By means of its powerful borrower satisfaction management tool called MortgageSAT, developed in partnership with the CFI Group, STRATMOR has led the way to fundamental change the way lenders manage and apply borrower feedback. MortgageSAT is the first and only borrower satisfaction monitoring tool to score satisfaction at all levels of the organization as regards retail, consumer direct and broker production. As a consequence, many MortgageSAT clients tie their employee reviews and, in some cases, compensation both to these scores and a review of borrower comments. When everyone’s performance review includes a measure of their contribution to borrower satisfaction, a borrower-centric culture is fostered that is aligned with the emerging competitive paradigm of “optimizing the borrower experience.”

Maxwell

PROGRESS in Lending has named Maxwell at top industry innovation. No matter how digital the process, every mortgage is saddled with documents and data, over 500 pages, according to the Mortgage Bankers Association. As a result, an average of 20 days during the mortgage process is consumed by the search, preparation and review of those documents. Maxwell, the leading digital mortgage solution for small and midsize lenders, removes this friction with its platform. Sitting as the digital interface between the lender and their borrowers, Maxwell manages collaboration through the loan process, significantly reducing cycle times and driving delight. Originating teams on Maxwell are able to focus on what they do best, advising and coaching clients through the largest transaction of their lives, while Maxwell’s technology handles the rest. As one head of production attested, “Maxwell allows us to focus on what we love: working with real people. While loans get done faster and my team is happier.”

PromonTech

PROGRESS in Lending has named PromonTech a top industry innovation. The Borrower Wallet is the first offering from Promontory MortgagePath’s technology arm. From a lender’s perspective, the Borrower Wallet captures leads and fosters borrower/lender collaboration to drive enterprise efficiency and improve loan pull-through. In addition, its built-in collaboration tools deliver high-quality data and documents needed to feed and accelerate the downstream underwriting process. As a white-label offering, the Borrower Wallet makes the latest technology accessible and affordable to mid-size and smaller lenders, enabling them to compete with mega lenders. PromonTech’s culture of mutual respect between “techies” and mortgage industry experts made it possible to create a mass-market POS where both consumer and lender needs are equally important. The Borrower Wallet is not the first digital POS, but it’s the first to engage consumers while anticipating lender needs in such a balanced way. It combines creative design, industry analysis and data governance to create a unique user experience.

MCTlive!

PROGRESS in Lending has named MCTlive! a top industry innovation. Over the past year, MCTlive! developed a major mortgage technology advancement with the addition of what the company branded its “Bulk Acquisition Manager” (BAM) solution, which is accessible via MCTlive! BAM is a Digital Loan Trading solution. BAM completely automates the process of packaging and transferring bulk loan bids, which benefits investors, lenders and MCT’s team of in-house mortgage loan traders. The result is a much quicker pricing process for bulk bid tapes, greater data security, better communication between counterparties, increased transparency for all parties, process consistency for investors within their existing platform, and centralization of data. BAM helps facilitate digitize loan trading on the secondary market. The effectiveness of the BAM technology has already gained 100% adoption by the ENTIRE investor community on the secondary market — across the board. And the level of transparency it offers between buyer and seller is hugely attractive and makes investors and lenders feel at ease.

Ellie Mae

PROGRESS in Lending has named the Ellie Mae Encompass NG Lending platform a top industry innovation. The Encompass NG Lending Platform allows lenders, service providers, and independent software vendors the ability to build custom applications in the cloud, integrate external systems and data, and extend Encompass in order to meet any and all industry challenges. Mortgage lenders and mortgage service providers can build, integrate, or customize solutions, and get them to their customers and market quickly. Lenders, partners, and third-party providers gain access to data and systems across the mortgage ecosystem. In the end, all participants can easily view and share loan date, sales pipeline, loan events, documents, and order services. A shared system of record allows all parties in the loan process to see the same up-to-to-date information in the same format. Everyone in the ecosystem can easily share, interact, and collaborate without having to create and support new channels.

 

 

Data Security – What Every Mortgage Professional Needs To Know

Download Your Free PDF Copy of “Data Security – What Every Mortgage Professional Needs to Know” – Including Helpful Resources, Links, and Examples

By John Paasonen, CEO of Maxwell & Ken Kantzer, Co-Founder PKC Security

Mention data security to a mortgage executive and it’s enough to make them squirm. You can’t open a newspaper without reading about a security breach, even from some of the world’s most avantgarde technology companies.

Data is the heartbeat of the mortgage industry. Protecting it should be the priority for all organizations, no matter their size. And it’s time to size up to the reality that the conventional methods of security are no longer sufficient.

Featured Sponsors:

 

 
Ken Kantzer knows a bit about data security. He is the co-founder of PKC Security, a cybersecurity consulting firm. He has undertaken cybersecurity consulting and code audit efforts across multiple sectors: high-tech startups, financial services, oil & gas, industrial infrastructure, and high-security government systems.

Reduce Fractured Business Architecture

The way most mortgage companies work is fractured and insecure. Data resides on systems from the loan officer’s messaging app on their smartphone through to the LOS and everywhere in between. Data sits in Word documents. It lives in Outlook. And it’s transferred to third parties as part of the process every day.

Despite marketing promises to the contrary, there is no single all-in-one platform today. Indeed that may be an unrealistic utopia. What is realistic is a set of best-of-breed, modern systems that work together seamlessly.

Featured Sponsors:

 
“The best way to get hacked is to have systems on your hands that no one at your company understands,” says Ken. “Given the choice, opt for platforms that employ the most modern security measures, and simple interfaces between your systems.”

Protect Data Dynamically

The conventional castle-and-moat approach to data security is outdated. The financial services industry, particularly the mortgage vertical, must move beyond just firewalls, antivirus, content filtering, and threat detection. “The old idea of putting up a wall and standing watch just doesn’t hold true anymore,” says Ken. “The new approach to data protection focuses on resiliency — systems must ensure that even in worst-case scenarios where there is a data breach, the data can be rendered useless.”

Encryption is one such example of this approach. Mortgage companies can maintain control of their data, even when it is deployed in the cloud or in their data center. By moving security controls as close as possible to the data, a mortgage company can ensure that even after the perimeter is breached, the information remains secure. “At PKC, we always look at how cloud services use encryption, and how the encryption keys used by the service are protected. When encryption is properly implemented, it can be a huge help in strengthening the security of a service, but when it’s improperly implemented, it can actually hurt, by lulling users into a false sense of security.”

Featured Sponsors:

 
If you haven’t been breached yet, you’re either lucky or you don’t even know it happened. Only mortgage companies that adopt a combination of password managers, encryption-at-rest (using tools like BitLocker or FileVault), and two-factor authentication can be confident that data is useless should it fall into unauthorized hands.

Make Sales & I.T. Collaborate

Hopefully you do the basics: security awareness training, security policies that are enforced across the organization, and a consistent process of monitoring and reviews. Although these are necessary, they often feel like shackles for the sales team.

As many CIO’s realize, employees are often the weakest link. “The key to security is not a sexy new kind of technology, it’s not machine or deep learning,” says Ken. “Of all the awesome technology to deploy to catch bad things before they happen, it’s your frontline employees that will have the highest rates of detection.”

When IT team and sales collaborate, it is the opportunity to confer the feeling that owning security is their responsibility. The key to security is getting every person to care about it, to set a shared value that we must “protect our house” both at home and in the office.

Rather than IT attempting to shackle sales, have them arm the sales team with market-leading mobile communication and collaboration tools that solve their problems, make them more productive and are, by their very nature, secure.

Finally, use the best technology has to offer to reduce non-selling administrative or customer service aspects of a loan officer’s role. Too often, those activities take up more time than the selling loans, and sadly are often created by poorly designed technology tools themselves. Ken agrees: “A mortgage company that understands how to minimize the amount of time a loan officer and her team spends doing administrative tasks, such as data entry and chasing borrowers for documents, will win by helping them be more productive.”

Hack Yourself

It sounds counterintuitive if not downright scary: invite hackers to analyze your systems, looking for security holes, and pay out a “bounty” when they find them. But PayPal, Western Union, Square, Simple and other financial services companies that have created or worked with so-called bug bounty programs say they’re an effective supplement for the work done by sometimes-strapped internal security folks.

Outside the industry, it’s become a common-enough practice that even the U.S. government launched a “Hack the Pentagon” program. Hackers have already found 100 vulnerabilities in Department of Defense systems and the program has paid out $15,000 to 1,400 participants.

Pay hackers to take your side and work with you, and avoid the legal, privacy, intellectual property and cyberfraud issues that result when they go it alone.

Companies that have been using bug bounty programs for years see only benefit to them. Along with the many other types of security defenses mortgage companies need, offering a bug bounty, or undergoing a quarterly penetration test, is likely to become a best practice in the industry.

Empower Your Customers

Two in three customers said they’d cease doing business with a company that experienced a breach where financial information was stolen. Half of the respondents to the global survey by Gemalto said they’d stop doing business with a company where personal information was stolen. A quarter of people said they’d consider legal action against the breached company.

In fact, a mortgage company can even increase customer trust by telling borrowers about the security measures that they have put in place to protect their data. By being open about the efforts they are making with regards to data protection, like encrypting data in transit and at rest, they can be perceived as trusted innovators.

Mortgage companies can take this a step further and, as well as informing customers about what they are doing to protect them, can also tell them what to do in order to protect themselves and become safer users of their services — for example, instructing them not to send sensitive documents by email.

Conclusion

Security must be at the forefront of all decisions made by mortgage professionals. Rather than letting this slow you down or cripple your organization, use security as your asset to grow your business. Have your teams empower each other rather than limit the capabilities of each group. Challenge yourselves regularly.

Technology and proper processes unlock efficiencies and can improve not only the security of your clients information, but your bottom line as well.

About Maxwell

Maxwell is a lightweight digital mortgage platform, helping lending teams become more efficient and provide the digital experience borrowers expect. Maxwell was created on the principle that mortgage companies will win by betting on the augmentation of human ability, not by replacing it with faceless technology. At Maxwell, the power of the human relationship is core to how we build software.

Founded in 2015, Maxwell is a member of the Mortgage Bankers Association and the Colorado Mortgage Lenders Association. In 2017, we were named one of the most innovative companies in real estate by HousingWire Magazine. Every day, our software is used by originators across the U.S. to serve thousands of homebuyers.

Download Your Free PDF Copy of “Data Security – What Every Mortgage Professional Needs to Know” – Including Helpful Resources, Links, and Examples

 

Integration Makes Lender And Borrower Collaboration More Effortless

As mortgage lenders increasingly invest in modernizing their technology experience, Maxwell, a provider of digital mortgage automation software for small and midsize lenders, has integrated with LendingQB to make it easier for lenders and borrowers to collaborate effortlessly through the mortgage process.

Featured Sponsors:

 

 
LendingQB continues to extend its integrations through its web-based LOS system . The LOS’ open-architecture application program interface (API) enables lenders to select the tools that best help their efficiency. The LOS was cited in the STRATMOR Group’s December 2016 Technology Insights report as achieving an end user effectiveness rating of 93%, top marks amongst the major LOS providers.

Featured Sponsors:

 
“In this age of platform interoperability, LendingQB gets it — an open origination platform that empowers its users to optimize the experience for speed, security and delight,” said John Paasonen, CEO of Maxwell. “We’re thrilled to integrate with a likeminded partner as a showcase to Maxwell’s API that gives flexibility back to the customer.”

Featured Sponsors:

 
Maxwell automates the way that mortgage lenders work with their clients to close a mortgage, from the loan application to assembling a borrower’s file. Lending teams on Maxwell collaborate with homebuyers in a modern digital workspace, on any device, with connectivity to thousands of data sources. Designed by usability experts, Maxwell reports that loans on its platform close 22 days faster than the industry average.

The integration with LendingQB will enable Maxwell clients to seamlessly sync borrower data with the loan origination system, trigger automated notifications to borrowers and real estate agents, and securely exchange documents and information.

“The ability to provide innovative technology such as an open architecture API offers lenders an added value as their organizations continue to grow and evolve,” said Tim Nguyen, president of LendingQB. “This partnership with Maxwell affirms our commitment to streamlining our clients’ access to products and services that power their business. Innovation is accelerating in this industry and lenders benefit when they can utilize best-of-breed solutions to streamline the mortgage process.”