For the sixth consecutive year, PROGRESS in Lending Association hosted its groundbreaking ENGAGE Event designed to engage the mortgage industry to discuss and find solutions to so many pressing industry issues. This was a frank and thorough exchange of ideas and tips about how to solve the problems that face the mortgage industry. Yesterday we reported on what the speakers said about the future of mortgage regulatory compliance. Here’s what they had to say about the future of mortgage technology innovation:
“Looking back, the industry under estimated the amount of effort required to comply with TRID,” said Roger Gudobba, vice president, mortgage markets at CSi. “The industry is always reactive instead of being proactive. The new buzzword going around now is the digital mortgage. I hope it’s more then a buzzword. We as an industry need to focus on the data, which is what we always needed to do.”
So, what will define a truly forward-looking and innovative mortgage company in the years ahead? “Burdens in many areas continue,” answered Paul Wetzel, product management lead for Mortgage Cadence. “You need an open platform with a modern interface. Ease of use is critical. The innovative technology firms will be adding quality development staff. The innovative system of the future will be scalable, compliant and include all of the fun stuff, too.”
Case in point, let’s look at Fannie Mae’s launch of Collateral Underwriter. The GSE has invested a lot in development to roll out new tools to both digitize the process and ensure compliance, but is it working? “People are accepting of CU,” pointed out Lisa Binkley, senior vice president business development and mortgage services at Platinum Data Solutions. “However, people say that it is too manual. The UI is easy, but many feel like they need to know what’s underlying the decision of CU so they can address the findings. CU is an advance, but it has to be improved.”
The key to innovating is getting as many lenders to embrace smart automation. If lenders won’t automate at all, innovation just can’t happen. One way to get lenders to move faster is to offer more automation in one platform that is either all-in-one or tightly integrated to best-in-class players.
“It is an expansive and timely process for lenders to vet so many technology vendors,” explained Marc Riccio, president at Specialized Data Systems. “Vendors have to offer both lenders and borrowers a truly better process. You can’t just automate an old process, you have to automate to improve the process. For example, if you are working with someone on a mortgage, you should be able to offer them other products like a credit card, a boat loan, or something else, all from one system. Innovative technology allows lenders to work smarter.”