Things To Ponder: Does Innovation Ever Happen Anymore?

*Does Innovation Ever Happen Anymore?*
**By Roger Gudobba**

***I remember back in the late 90s when everyone was saying the e-mortgage is only three to five years out. Here we are 20 years later and e-mortgages are still a very small part of the market. As I was thinking about this topic of innovation, I thought I’d do some research to see where we were in the 1990s as compared to where we are today. To this end, I uncovered the Mortgage Banking magazine, March 1991 issue. The cover story was “Technology: More systems, less paper”. One article stated, “There is still a lot of paper out there—no threat to Federal Express is emerging yet from this industry. But then again, change is rarely delivered overnight.” What do you think of the progress in the industry in the 20 years since this issue was published?

****As I am told, the definition of innovation is the process of improving an existing product or service and not, as is commonly assumed, the introduction of something better. Personally, I disagree and believe that innovation is about the introduction of new or different tools or methods, especially as it relates to the mortgage industry. This may be a matter of personal perspective, but when I look back at the significant changes in the industry, like the development of loan origination systems, automated underwriting systems, converting from paper to electronic (more on that later), product and pricing engines; all amount to the introduction of something better rather than just an improvement of an existing product. What was the common thread?

****Each of these innovations took a subset of the overall mortgage loan process and thought “how can we do this better?” They began by looking at the start and the end of the process. You need to determine what the objective is, and what the end result is that you want to achieve. From there, you brainstorm on different ways to achieve those results and ignore how it has always been done in the past. It was thinking outside the box that lead to these innovations.

****Michael Fruhling, Founder and CEO of bfs innovations, Inc., in his article Bridging the Innovation Gap published 3/8/2011 stated:

****“In a 2010 McKinsey survey of over 2,000 corporate executives, 84% said that innovation was very or extremely important to their company’s future growth. However, 40% claimed that they select their new ideas on an ad hoc basis. Further, 57% agreed that while they execute well against the few new ideas that they had… they needed more big ideas.

****Net: most corporate executives believe that innovation is important, but a good number of them don’t appear to dedicate sufficient time, attention and resources to building and maintaining their innovation pipeline. The result of this would appear to be an Innovation Planning Gap.

****The McKinsey survey highlights overall, what Michael sees on a more micro scale. A good number of his R&D colleagues lament their inability to carve out adequate time away from the current business to pursue and develop new opportunities. They are similarly frustrated that they lack a proper forum to serve up their inspirations to their marketing peers to build their interest sufficiently to pursue some of these ideas.

****Many marketing managers have new product development responsibilities in addition to their current business obligations. Time restrictions can cause some to feel pressured to pursue more conservative, expedient opportunities, as opposed to more ambitious concepts with greater potential (but also with greater risk).”

****What does all this mean? For “an innovation, to be effective, it has to be simple and it has to be focused. It should do only one thing, otherwise it confuses. If it is not simple, it won’t work. Everything new runs into trouble; if complicated, it cannot be repaired or fixed. All effective innovations are breathtakingly simple. Indeed, the greatest praise an innovation can receive is for people to say: ‘This is obvious. Why didn’t I think of it?’” —Peter Drucker

****What will 2011 bring? PROGRESS in Lending honored five top innovations in 2010. I am honored to be a judge for the competition. Some of the entries were very impressive. I hope to see even more impressive entries as we work toward Innovations 2011. I’m waiting…

Magazine Column

*Business Strategies: An Enemy Called Average*

**By Michael Hammond**

***There are many things that have been said about today’s mortgage market but words like thriving,

booming and easy are not among them. In order to compete and grow in today’s changing markets

and ultra competitive environment, companies must foster a competitive spirit. It is imperative

to instill a commitment to excellence within their organization if they are going to be able to grow.

****The major roadblock to achieving this is what I call, “an enemy called average.” What does that

mean? People are fine with just getting by. Society has taught some that it’s ok to do the bare minimum.

These people think that they are entitled to certain things, so they don’t strive for more. As a

result, they become content with just getting by and doing just what’s expected and nothing more.

When you’re average, that detracts from you ever becoming great. You don’t have that competitive

spirit or drive, in other words.

****What’s fueling that is a sense of entitlement. People feel like the world owes them something, so

they take things for granted and expect things without having to put forth the work or effort to accomplish

tasks and overall success. Unfortunately, that starts at a young age in this society. Kids are

programmed to get what they want when they want it.

****It’s all about instant gratification.

The bigger problem is that you see this in all aspects

life. As kids grow and participate in sports, for

example, think they’re entitled to playing time, just

because they showed up for practice. It doesn’t matter

if they’ve acquired the requisite skills or put forth the

effort at practice, they feel that they deserve to play and

so do their parents.

****Further, just because Johnny spent an hour doing his homework, doesn’t mean that he understands

the lesson and deserves an A. The school systems are also falling into the trap of being average because

they don’t want to label exceptional effort or kids that need more help. They think they’re helping these

kids, but in reality, they are crippling these kids from working hard. Society wants to protect kids from

disappointment, but disappointment is part of life. What do I mean? Somebody gets the job, somebody

doesn’t. Somebody gets the promotion, somebody doesn’t. By creating this sterile environment, we do

kids a huge disservice.

****So, after a life of having things handed to them, of being protected from criticism, these kids enter

the workforce and just wait for something good to happen to them. They expect and feel like they

deserve a given position or title even if they haven’t proven themselves. They want a lifestyle without

putting out the effort to accomplish that goal. What this does is produce a whole generation in our

workforce today that’s ok with mediocrity.

So, they stop growing. They don’t strive for greatness. They are not looking to excel. They’re not

teachable, and they give up the first time things get tough because they have been insolated and they are

used to getting what they want without doing anything to deserve that reward. When someone critiques

them or out performs them, they don’t know how to respond.

What this leads to is these individuals not being adequately prepared for business or life in

general. They don’t follow through when

things get tough. They shirk accountability.

****In the end, they are not able to self

analyze their situation in order to realize

what needs to be done for them to move

forward. What we have is a generation of

whiners that haven’t learned how to win.

I recently read a book by Keith Cameron

Smith called The 10 Distinctions Between

Winners and Whiners. It was a good

read. Here’s the premise of the book:

****Distinction # 10: Winners take responsibility.

Whiners play the victim.

****Distinction #9: Winners can have what they want. Whiners

want what they cannot have.

****Distinction #8: Winners find a way. Whiners find an excuse.

****Distinction #7: Winners brighten a room by entering. Whiners

brighten a room by leaving.

****Distinction #6: Winners listen twice as much as they talk.

Whiners talk twice as much as they listen.

****Distinction #5: Winners enjoy life’s journey. Whiners put

their joy in the destinations.

****Distinction #4: Winners build friendships. Whiners destroy


****Distinction #3: Winners think big. Whiners think small.

****Distinction #2: Winners are focus-minded. Whiners are


****Distinction #1 Winners create positive meanings. Whiners

create negative meanings.

****As employers, you have to understand that this sense of entitlement

and this enemy called average has permeated the workforce.

If this is not addressed, it can stifle future growth.

****How do you address it? It’s important to create a spirit of

competition and a spirit that strives for excellence. I’m not talking

about perfection, but rather encouraging a spirit that is always

looking to improve. In creating that environment, what it

will deliver to the organization, is an understanding that life is

not fair. Some times you’re going to get the deal even if you

have the best solutions because their CEO is friends with your

competitor’s CEO.

****You can’t always control those situations, but you can always

control how you respond. No one owes you anything, and you’re

not entitled to anything. In other words, you have to go out and

earn everything. Goals and dreams are attained

through hard work and the desire to

never give up until you’ve accomplished

the task at hand.

****Fostering this environment for excellence

puts people in a position to succeed

and a place where they can be teachable

going forward. In doing so, once you start

rewarding performance, when you acknowledge

those that are succeeding and

those people are striving to get their head

above the rest and their efforts are rewarded

as a result, we start breaking the self-entitlement

bubble. We don’t accept average anymore and individuals

learn discipline, accountability, determination, a willingness

to accept critique, a desire to constantly learn, and at the end of

the day it raises everyone’s game. Now that encourages others to

strive for greatness, too.

****Organizations that promote this type of environment demonstrate

that there are no limits on what the individual can accomplish

and what they can contribute to the organization. You

inspire workers to look beyond the boundaries and look outside

the box. That spirit of competition fosters continual growth. In

the end, the company wins and the individual wins because they

are more willing to do whatever it takes to achieve their goals.

Make no mistake, this doesn’t happen overnight. If the company

promotes ongoing learning, sets forth a vision, and reward

risk taking and give incentives to individuals that have gone above

and beyond, they can eliminate this enemy called average.

I know you’re asking; “What does this mean for my business?”

****As a technology vendor, if you foster this environment

instead of having a sales team that just takes orders, is not persistent

and doesn’t follow through, this strategy will get you a

staff that will move past those hurdles and improve your bottom

line as a result.

****As a lender, when this competitive spirit is part of your culture,

your employees will seek ways to produce better quality

loans, increase transparency and they’ll continue to battle for

borrowers even though origination volume is expected to decline

this year.

****Companies must eliminate a sense of entitlement and create

a competitive environment where everyone strives for excellence.

****ABOUT THE AUTHOR: Michael Hammond is 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. He can be reached at



Magazine Column

*Process Improvement: Dare To Change*

**By Tony Garritano**

***I have never experienced such raw emotion over a new piece of regulation. Even the RESPA changes that came into being last year weren’t as maligned by mortgage participants as the new loan officer compensation rule. By listening to bankers on both sides, you would think mortgage lending as we know it will change forever, and that change will be to the detriment of the industry.

****Before I tell you what I think the overall significance of this change should be, let’s frame the argument first. In fact, Larry Cragun frames the background and impact of this new rule perfectly in his blog called Real Estate Undressed. Here’s how he explains it:

****“On August 16, 2010, the Federal Reserve published its final rule on loan originator compensation. The cornerstone of this rule is to preclude loan originators from having any financial interest in the terms or conditions of the loan. In effect, a lender’s compensation of the loan originator (a loan originator is defined as a retail loan officer or a wholesale loan broker) must be pre-determined for any loan, while the lender’s negotiation with the consumer about the terms and conditions can vary as the lender deems necessary in light of market conditions.

****Much confusion exists in the industry. The rules outlined below are from the Federal Reserve. They have not reconciled these rules to what was proposed by the Frank-Dodd Act. While close, there are some differences and you can expect that some of the rules will change.

****This represents a paradigm shift in how loan originators will be compensated.

****The Rule: Mandatory compliance with the rule is required for applications received by creditors on or after April 1, 2011. In general,

****1. The rule provides that no loan originator may receive and no person may pay to a loan originator, directly or indirectly, compensation in any amount based on any of the loan transactions terms or conditions.

****2. Increasing or decreasing a loan originator’s compensation based on transaction terms or conditions are prohibited.

****3. Varying of a loan originator’s compensation based on factors that serve as a method to increase an originator’s compensation for a transaction’s term or conditions also are prohibited.

****4. The Dodd-Frank version, a loan originator can be held personally liable for steering a consumer to a higher rate loan.

****In English…Yield Spread Premiums and Service Release Premiums to originators are gone. Loan originators will no longer receive YSPs or SRPs.

****Permissible Compensation Plans: In general, permissible compensation plans include plans that allow for:

****1. The notion that the loan should be based on a fixed percentage of the amount of credit extended. The percentage may not vary based on transaction terms or conditions.

****2. The compensation should be fixed in advance for each loan of loan originator.

****3. Compensation should be based on a percentage of the loan originator’s applications that result in closed loans

****4. Compensation should also be based on the long-term performance of the loan originator’s loans.

****5. Lastly, compensation should be based on the overall loan volume of loan originators

****Some examples of allowable compensation plans include:

****1. 100% of the origination fee collected is allowable and can vary between originators.

****2. A fixed dollar amount per loan.

****3. A quarterly incentive is allowable.”

****Cragun ends his blog by saying, “More changes are forthcoming. While the Fed has published these rules, they have acknowledged that more changes are forth coming.”

****I wanted to share that blog post in its entirety because it’s the best explanation of this new rule that I’ve seen. It provides clarity. Too bad Cragun isn’t up in Washington helping the politicians write these bills. But I digress.

****Now, let’s examine the points for and against this new rule. As I said earlier, this new rule has people on both sides of the fence expressing very harsh views. Those that are against this new rule say that they are working too hard to give up traditional compensation and this rule is evidence that government is overstepping and over regulating the mortgage space. One blogger (a loan officer who I will not name) put it this way:

****“What Congress is attempting to do is eliminate excessive fees and higher rates to consumers. I have to admit I’ve witnessed loan officers make in excess of 3% on their loans in the old days. We’re capped at 3% total and last year I made 1.08% on all my loans. The bottom line is this: All of us in the business are working harder than ever and making less money.”

****On the other side, you have people cheering this new rule. This blogger (again a loan officer who I will not name) says:

****“I hope this goes through. In my opinion, loan officers should be on a salary basis, just like most other white collar workers are these days. Imagine if a doctor got paid a percentage based on their surgery fees or based on how many prescriptions they wrote. Finally, government is trying to do something about the out-of-control financial industry and this is only one small step in the right direction.”

****What do I think of all this? Hard-working LOs are going to suffer and probably get paid less. That stinks. On the other hand, a system that provides any kind of financial incentive to put a borrower in one loan product over another is flawed and opens the mortgage industry up for people of little character to try and con the system to get a bigger commission even if it is to the detriment of the borrower. This conflict has to be addressed.

****Are the rules being proposed by Washington the best way to make for a more equitable system of LO compensation? Probably not. Lenders are going to now put their heads together to come up with individual programs that both comply with the rule and work for their organization.

****What can we as an industry learn from all this? We can’t wait for Washington to tell us how to conduct business, but we can’t sit around and do nothing to improve the mortgage process and expect to be left alone. The mortgage industry has reached a critical juncture. There’s no turning back, so let’s move ahead together. I suggest that the industry use this rule as a way to rethink its processes and change them for the better.

****Think of it this way: You may like that comfortable sweater that you got as a Christmas gift 10 years ago, but the fact of the matter is that it now has holes and it doesn’t fit right because you’ve gained a few pounds. Do you really need someone to tell you that you can’t wear that sweater out in public anymore? I hope not. The mortgage process is that old sweater. Let it go and get a new and better sweater.

****Let’s look at another analogy. As we all know, there was a time in the history of our planet that the terrain was ruled by dinosaurs. These huge animals quite literally spanned the globe. They were the dominant force. How could anything so widespread literally be wiped out? Simple, there was a shock to their system, most likely a huge asteroid or series of asteroids hit the planet, and they couldn’t adapt.

****The mortgage process is a dinosaur. Right now new regulation is shocking the system. So, we all have to adapt. We can’t rely on the same old/same old and expect to get by. If we as an industry cling to the process of old, we are doomed to extinction. A new and better process coupled with smart technology is emerging. Don’t just stand still and complain, dare to change.

****ABOUT THE AUTHOR: Tony Garritano is Chairman and Founder of PROGRESS in Lending. 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. He can be reached via e-mail at



Powering Today’s Lenders: Loan Quality, Your LOS Could Be The Difference

*Loan Quality: Your LOS Could Be The Difference*
**By Daniel Liggett**

***In today’s market, quality and compliance are major concerns for lenders. They need to comply with a flood of new regulations, avoid potential fines and minimize buyback risk while ensuring loan quality. Lenders understand that investors will not purchase loans that do not meet their strict quality requirements. Lenders are facing these challenges with fewer staff and in an extremely competitive marketplace.

****Loan officers are struggling with the speed and frequency at which these rules and regulations are changing and diligently looking for guidance on how to implement effective solutions that address these concerns. They are looking for automation that addresses investor loan quality requirements and the flood of new rules and regulations.

****Want better loans? Then start with your LOS. The typical system of record for the majority of your loan data is your LOS. To assure investors that your loans are of high quality and saleable, lenders must look for ways to improve the loan process within their LOS. Lenders need to accept that bad data = bad loans = buybacks = loss of profit. Inefficiencies within your lending process cause errors, and increase costs.

****To stay competitive in today’s market, lenders can no longer afford to deal with inefficient and outdated LOS technology. The stakes are simply too high. Regulatory penalties and costly buybacks will significantly cut into profits and overall sustainability of the lending organization.

****A powerful LOS, especially one that delivers automated data validation, can improve loan quality. These systems can provide data edit checks and hard stops within the system to prevent bad data from being introduced into the loan process. Advanced business rules can address and enforce regulatory changes and new investor guidelines, while streamlining the lending process to improve loan quality.

****In addition, tight integration of the LOS with other key third party service providers is critical in improving data and loan quality. Two-way auto data integration avoids rekeying of information, eliminates omission errors and reduces the time and cost of data entry mistakes. Lenders simply cannot accept simple interfaces that do not address or eliminate these challenges.

****If you want to improve loan quality, avoid costly fines and minimize buyback risk then one of the first places you need to look is your LOS. Advanced LOS offerings that utilize the latest technology solutions and also constantly monitor regulatory changes can deliver the type of solution that you need.

****Loan quality can no longer be wishful thinking if you hope to prosper in the lending environment of the future.

Magazine Cover Story

*Get A New Start*

**Executive Interview**

***It seems like every day brings more bad news for the mortgage industry. What bad news? Originations are on the decline. Foreclosures are on the rise. More regulation is lurking around every corner. Investor confidence has not returned. Housing prices haven’t bottomed. Unemployment remains above 8.5%. Should I go on?

****When will we start seeing some good news? There are no immediate fixes for any of these problems and the host of other problems the industry faces that were not listed. However, in the midst of all this gloom and doom, Kelly Purcell of eSignSystems has always been an innovator who sees opportunity, not adversity. Sometimes you just have to hit bottom before you can see the best way forward. Kelly is very positive about the future of mortgage lending.

****Why does she feel this way? Coming back from the brink and becoming successful takes a lot of hard work to accomplish. Personally, Kelly started an e-signing and e-vaulting company back in the 1990s when there was no market for this technology at all. So, she had to be a constant evangelizer. The bottom line is that she’s a hard worker and she thinks most mortgage professionals are as well. She talks candidly about her own experience and where she sees the mortgage market going from here.

****Q: When is the mortgage space going to see a new beginning?

****KELLY PURCELL: I believe that we are on the forefront. The shakeout from the crisis is pretty much stabilized as far as who the players are going to be in the new mortgage arena. Those that have weathered the storm the past few years are obviously committed to the mortgage industry. The storm cloud hovering still is what will happen to Fannie Mae and Freddie Mac. Speculation varies—but in the interim lenders are dealing with the limitations of the secondary market and adjusting their business accordingly. I see everyday lenders wanting to think differently and making changes. So, I am optimistic that the mortgage industry is already in its new beginning. The cleanup is underway and it will take some more time, but the housing industry is too critical to our economy to not give it the attention and resources to make it better.

****Q: But with origination volume predicted to decline by as much as 40% this year, how does the mortgage industry reinvent itself in such a challenging market?

****KELLY PURCELL: The good news about origination volume being down is that it allows mortgage participants to play catch up. With a lot of the regulatory changes coming into effect in 2011, most companies have been scrambling to buy or build solutions to help meet those requirements. Historically speaking, most technology changes occur in a down market. When companies are at peak volumes it is hard to implement change. The challenge now is that even though volumes are down, resources have been cut quite drastically in the past few years so finding the “talent” to reinvent will be difficult. I think that is part of what is driving the utilization of the SaaS model in all areas of the mortgage process, namely the lack of resources within a company. That is why our SaaS partners are so important as they offer e-signatures and e-vaulting embedded within their products and services creating many options for lenders today. Companies will be very focused on the ROI of technology investments and how it can improve their competitive advantage.

****Q: Also on the down side, foreclosures hit a record high last year and that number is expected to increase more this year. As someone who is fortunate enough to serve both lenders and servicers, what do servicers do to reinvent themselves this year to deal with all these foreclosures?

****KELLY PURCELL: Yes, we participate in all market segments. Servicers have been challenged over the last 24 months in particular and continue to be challenged. Having said that, the technology providers that service this segment have been working very diligently to improve their products and services not only on the foreclosure process, but also the modification process, as well. An example of that is DRI, who won an award for their contribution to improving this market segment. What we’ve seen as a result of these market conditions is that servicers are reaching out. They want technology solutions. Most servicers are a part of a larger company or entity and those larger companies realize that technology dollars need to be allocated to servicing. To fully address future issues, everyone now understands the impact of efficient servicing or the lack thereof. Who knows where the housing recovery would be today if response times and programs had been different. I believe there has been a real window of opportunity for technology providers and many of them have stepped up to the plate. E-signatures  have made a significant positive impact.

****Q: One issue that we continue to hear from lenders and servicers is that regulatory uncertainty is stalling innovation. Are people more or less willing to innovate given this uncertainty?

****KELLY PURCELL: I actually have seen the opposite. I see the technology providers working day in and out to make the engineering changes necessary to provide products and services to help lenders meet those regulatory changes. They want more information as to how technology is going to solve a particular regulatory issue. We have resources to stay on top of all the regulation out there and we are actually providing guidance around regulatory compliance to our customers. We feel comfortable in this area and are glad to be viewed as an additional resource to our customers/partners.

****Q: One positive development is that recent research shows that technology spending will be up by 15% this year as compared to last year. Is that good news or was technology spending just abysmal last year?

****KELLY PURCELL: Many sources have indicated that tech spending will be up this year. I understand that companies will spend $600 billion dollars by 2012 on mobile payment applications alone. Now that is a number to notice. There continues to be focus on technology. Organizations continue to spend, just more carefully. Many technologies are very mature and proven. I don’t see a lot of new technology surfacing, more just improvements of existing technology. I see mobile applications as an area of growth. I also see more interest in secure authentication of both the data and the individual and of course e-signatures.

****Q: So, how would you define the state of innovation? Is it alive and well or are mortgage companies just getting up to speed?

****KELLY PURCELL: Most companies are still playing catch up with the fallout and new regulations that have taken place over the last couple of years. Technology is approached from the point of view that I as a mortgage professional want to automate to make this one process better. I think technology usage today is more about process improvement. Do you call that innovation? I’m not really sure, but there is a more defined approach to solving process problems with technology. This approach by market participants is encouraging to me, but it isn’t necessarily the earth-shattering innovation that comes to mind when thinking of huge technology advancements.

****Q: You have been an innovator in the area of e-signing, having brought to market a solution in the 1990s, long before there was a market for this technology. How has the industry’s perception of e-signing changed over the years?

****KELLY PURCELL: The numbers speak for themselves. Adoption continues to grow. If you look at the increased number of companies producing e-disclosures from three years ago to today it is pretty impressive. Not only is that area growing, but now companies are realizing they can spill the e-signature process over into other parts of their business, to include contracts, HR documents and virtually any document that needs a signature. Most  e-signatures are being done at the point-of-sale today. On the closing side you can see the MERS numbers continuing to increase as well, though. When the investors have an easier process for the seller/servicer to get “approved” to sell e-notes—then we will really see traction on the closing side. In addition there are a couple of pioneers in the warehouse lending community that will help with liquidity in the sale of e-notes. It is all finally coming together. Our company continues to support technology platforms and lenders in preparing their company with a complete product roadmap of products to get them from e-disclosures to a full e-mortgage and everything else in between. It is very exciting.

****Q: You’re not just an e-signing vendor, you also offer e-vaulting. How has the industry’s perception of e-vaulting changed over the years?

****KELLY PURCELL: E-vaulting is a specific offering. I believe that there will be a handful of organizations that will commit and be successful as a long-term e-vault.  However, even if you touch an e-note for 30 seconds, 30 minutes or 30 years, a lender does need access to an e-vault in the closing process. This is where there is some controversy in the industry as to what that means. The term is thrown out there with a lot of different definitions. An e-vault should provide to a lend,r at a minimum, the ability to e-sign a SMART Doc, audits around all processes and of course the whole integration with the MERS eRegistry as the loan moves through its lifecycle. Then there is the e-delivery piece and then the final resting place of the e-note – in an e-vault. The good news is that you can perform all of these functions with existing platforms that are out there today. I am hoping to see more direction from non GSE investors as it pertains to the purchase of e-mortgages this year.

****Q: So, what’s ahead in 2011 for eSignSystems?

****KELLY PURCELL: In 2011 we have enhanced several of our modules. We are emphasizing smart reporting and putting business intelligence around our e-signature solutions. That’s unique because I don’t think our competitors offer that type of intelligence around e-signature and e-vault usage. We continue to be committed to the financial services marketplace and the specifics as it relates to the mortgage industry. As we talk about things like business intelligence, we think it’s critical that companies can take the data and document information and track trends, etc. How do you provide a more transparent process if you can’t track every part of your workflow? The answer is that you can’t. Lenders want and need that control in every aspect of their business, including their usage of e-signatures.

****Q: What would your closing thoughts be about how the mortgage industry can recover from this meltdown and be better for it in the end?

****KELLY PURCELL: To recover is to rehabilitate and that is what the industry has been doing the past 24 months. The mortgage industry is looked upon as a major barometer of the U.S. economy. Everyone takes that very seriously. The mortgage industry has been vilified of late, but I believe that the industry can and will play an important role in bringing our country back from the brink of disaster. However, this will take continued commitment from everyone in the mortgage space to continue to innovate and improve the quality and delivery of a sound asset to the investment community. We can and will rise to the challenge.


****Kelly Purcell Thinks:

****1. Online authentication and single sign on will be a top priority for companies this year.

****2. Regulatory compliance concern will continue to drive technology adoption.

****3. In particular, e-signature adoption will grow conservatively by 20% this year.


****4. Mobile applications will drive the banking industry and will spill over to the mortgage industry.

****ABOUT KELLY PURCELL: Kelly is Executive Vice President, Global Sales and Marketing for eSignSystems, a division of Wave Systems Corp. eSignSystems is a provider of e-signature and e-vaulting solutions. She was co-founder of eSignSystems and has over 25 years of mortgage and technology experience. Kelly is recognized as an evangelist and advocate of e-signature and e-vaulting technology driving e-mortgage adoption. She held prior positions at GE Capital and Transamerica Financial Services. In 2009, eSignSystems was the recipient of Mortgage Technology Magazine’s Lasting Impact Award.***



Mortgage Builder

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