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Lenders Weigh In On The Importance Of Efficient Mortgage Technology

Lenders One polled participants at its annual Summer Conference on their use of technology and their expectations for the market in the year ahead. As most phases of mortgage lending are increasingly being automated and conducted through online platforms, information security and data protection have become a central concern for the industry. Three-fourths of respondents (74 percent) indicated that they are very concerned about the protection of customers’ personally identifiable information during the mortgage originations and trading processes, even though this survey was conducted before the recent, major security breach at one of the largest credit reporting agencies became public. However, despite the potential data privacy challenges associated with some technology offerings, members recognized that innovative new platforms have the potential to significantly optimize efficiency and streamline processes.

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The Growing Importance of Technology for Efficiency and Enhancing the Customer Experience

The need and desire for expanded technology use was evident among the mortgage bankers surveyed. The majority (56 percent) said that improving operational efficiencies was the most influential catalyst for investing in new technologies, followed by offering a better customer experience (26 percent). Technology is also positively impacting traditional mortgage trading processes with more than half (53 percent) of the respondents identifying streamlining workflow as one aspect of the current process that could be most enhanced by a technology platform.

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“Mortgage professionals today realize the need for technology to drive efficiency, reduce the cost per loan and streamline daily tasks and interactions with customers,” said Michael Kuentz, President of Lenders One. “At the same time, there is rising concern regarding privacy protection as lenders increasingly integrate technology into traditional processes. As a cooperative, our focus has been on developing solutions that provide both efficiency and security, such as noteXchange, a trading platform developed with our members to streamline trading and help protect borrower data.”

Attracting and Retaining Talent

As the mortgage industry evolves and adapts to new technologies and regulations, lenders are investing in developing their employees. Of the respondents, 42 percent noted that professional development and training was the most important step their company is taking to attract and retain talent.

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“One of the most critical challenges our members face is recruiting and training talent who can carry their businesses into the future,” said Kuentz. “Robust training programs are critical, and we are seeing great success in pilots with our members to explore new methods for attracting talent from outside of the industry by identifying the key traits needed to thrive in a digitally driven mortgage environment.”

Market Outlook

When asked to forecast how the real estate market will look in 2018 and whether it will be a buyers’ or a sellers’ market, the majority of respondents anticipate that 2018 will again be a sellers’ market:

>>Modest sellers’ market (46 percent)

>>Heavy sellers’ market (25 percent)

>>Modest buyers’ market (17 percent)

>>Heavy buyers’ market (8 percent)

>>Undecided (4 percent)

When asked which factor will have the greatest impact on the mortgage industry’s growth in 2018, nearly half (47 percent) of respondents chose potentially higher interest rates, followed by continued increases in home values (18 percent) and innovation in banks’ menu of mortgage products (17 percent).

Survey Methodology 

The survey had 78 participants and was conducted at the Lenders One 2017 Summer Conference held in August. Respondents consisted of Lenders One members.

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.

A Slow Start

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TME-RGudobbaThe end of the year is when we typically sit back and reflect on the past year. I am going to start with some excerpts from an article, “Causes behind the Housing Recovery’s Slowdown in 2014” by David Crowe, chief economist for the National Association of Home Builders. “The year did not start well. The first quarter of 2014 recorded only the second negative growth time since mid-2009 when the economic recovery began. Given that start, the rest of the year was great by comparison. Total housing starts likely will improve over 2013 by 7 percent—steady progress but the slowest growth of the recovery.”

“On the positive side, employment growth in 2014 helped increase potential buyers. The number of jobs grew by almost 2.5 million, the best since before the crash. The strong correlation between job growth and housing construction means the places with the strongest employment growth are the markets with the largest increase in housing construction. The job growth effect has been weaker than prior recoveries because job growth has been in lower paying service jobs instead of the traditional growth in goods producing industries.”

In August, 2014, the Commerce Department reported, “Construction of new homes surged to its highest level since November, 2013 rising 15.7 percent in July to a seasonally adjusted annual pace of 1.09 million units. The gain followed two consecutive months of declines in the new-home sector.” Metrostudy is projecting homebuilding to rise 18 percent next year for single-family housing starts, compared to a 6 percent increase expected for this year. “The rise in single-family starts is more proof that the economy is firming and consumer confidence is growing,” says Kevin Kelly, chairman of the National Association of Home Builders. “We expect continued upward momentum into next year.”

One of the top 10 markets in the U.S. is Naples/Fort Myers/Cape Coral, FL. However, this doesn’t necessarily impact mortgage loan volumes. Home buyers in this area are second in the country in paying cash — stimulating the local real estate industry but creating potential dangers ahead. This metro area had 64 percent all-cash home purchases in May, 2014 according to a report released today by Irvine, Calif.-based financial data provider CoreLogic. In fact, the state of Florida was the No. 1 cash purchase state with 53.4 percent.

All that cash is flowing into the area because of the newly strict oversight by federal regulators of bank loans, plus low interest rates that make it unattractive to simply leave large amounts of money in a bond or a certificate of deposit, said Brett Ellis, head of The Ellis Team with Remax Realty Group in Fort Myers. One consequence of all this is that it’s the more expensive homes that tend to be purchased with cash, he said — lower-end buyers have to take their chances with the bank loan process.

Mounting confidence in the housing recovery has prompted more builders to expand their land and lot holdings in the past year — some by as much as 50 percent — CoStar Group reported in November, 2013. “Inventories of new and existing homes remain at low levels in most of our markets, and we expect the demographic drivers of household formation to result in the need for new homes for years to come,” says Larry Nicholson, CEO of Ryland. “For several years now, we have been focused on rebuilding our company to take advantage of the upturn in housing, and we continue this trend in the third quarter, ending the period with 49 percent more lots than we had in the same period a year ago.”

Andrea Stetson’s article in the Fort Myers News-Press, addressed the recent high-end building in this area. “Years ago our founder, Steve Dodge, came down to that area because of Red Sox spring training and found it a great place,” explained Chris Koeplin, vice president of operations for Windover. Dodge started buying lots on Fort Myers Beach, Barefoot Beach and Bonita Beach. “This guy had the foresight to buy a lot of lots when it wasn’t popular to buy lots. The market here on the beach is really hot.” said President Bill Potter. Bill Leach, a broker with Barry DeNicola Realty who lists homes frequently on the beach, agrees. Potter Homes is currently building five luxury houses along the beach. Almost every little empty space left on Bonita Beach is now being filled with new towering homes that are rapidly emerging from the sand below. When these last spots are taken all that will be left are the smaller tear-down houses.

This was reported in a Daily Real Estate News article in November, 2013. “Builders are blaming lawmakers in Washington, D.C., for the mounting challenges facing the new-home sector. “Policy and economic uncertainty is undermining consumer confidence,” says NAHB Chief Economist David Crowe. Despite the challenges, builder confidence held steady in November, with slightly more builders viewing market conditions as “good” rather than “poor,” according to the National Association of Home Builders/Wells Fargo Housing Market Index. “The fact that builder confidence remains above 50 is an encouraging sign, considering the unresolved debt and federal budget issues cause builders and consumers to remain on the sideline,” Crowe says. “Given the current interest rate and pricing environment, consumers continue to show interest in purchasing new homes, but are holding back because Congress keeps pushing critical decisions on budget, tax, and government spending issues down the road,” says NAHB Chairman Rick Judson.

The following was reported on Meet the Press. According to Gallup’s most recent survey, the majority of Americans (81%) think members of Congress are out of touch with average citizens. In fact, average Americans don’t think members of Congress understand their needs or concerns and those members of Congress are too beholden to special interests. Well, there’s a big reason why our representatives in Washington appear to have a hard time relating to most of you. And it starts with a massive wealth gap.

Let’s take a look at the numbers. First of all, members of Congress make a lot more money than the average American. Typical household income is $54,000 annually and the annual salary for each member of Congress, it’s nearly $175,000.

Not surprisingly, members of Congress are also doing better when it comes to seeing their wealth grow. On average, the net worth for the average citizen grew just under 4% annually from 2004 to 2012. In that same period of time, members of Congress saw their income increase at a 15% clip annually.

The result: by 2013, the average person 55 to 65 year old had a net worth of just over $165,000. And that includes real estate holdings. The average net worth for a member of Congress is just over a million dollars. And that does not include real estate holdings. They don’t have to report that on their forms. If they did, that number would even be higher. Overall, nearly 6% of households in America are millionaires. Over half of the 535 Members of Congress are millionaires. So, we can’t rely on the people in Washington to fix our problems because they don’t understand our problems. We have to fix this ourselves.

About The Author

[author_bio]

Roger Gudobba
Roger Gudobba is passionate about the importance of quality data and its role in improving the mortgage process. He is vice president, mortgage markets at Compliance Systems and chief executive officer at PROGRESS in Lending Association. Roger has over 30 years of mortgage experience and an active participant in the Mortgage Industry Standards Maintenance Organization (MISMO) for 17 years. He was a Mortgage Banking Technology All-Star in 2005. He was the recipient of Mortgage Technology Magazine’s Steve Fraser Visionary Award in 2004 and the Lasting Impact Award in 2008. Roger can be reached at rgudobba@compliancesystems.com.

2015: A Whole New World

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TME-TGarritanoWhen you talk to anyone in the mortgage industry about next year, expect to hear about the Consumer Finance Protection Bureau (CFPB) changes to the Good Faith Estimate, Truth in Lending Disclosure and the HUD Settlement Statement. Changes to these tried-and-true forms will be a huge adjustment for sure. But the story for 2015 won’t center around new compliance rules, it’ll be about how the mortgage industry reacts to these new rules.

“In the regulatory space, the biggest mortgage technology trends will continue to be the implementation of CFPB processes, procedures and guidelines that have created a new operating environment for financial institutions. Fundamentally, this paradigm shift is changing basic operational infrastructure and creating challenges with the cost of updating legacy systems, implementing technology solutions for changing operations, and integrating newer technology (cloud storage, mobile devices, tablets, etc.),” noted Joseph Little, President at COVIUS.

“Outside of the regulatory environment, we see an evolution to smarter technology that delivers more confidence in the accuracy of data. Once the market sees congruency between the data in a borrower’s loan file and the information represented in it, the mortgage market should begin to thaw for securitization and build trust back in to alternative avenues of mortgage lending,” Little said.

COVIUS is a provider of real estate advisory and technology services. Since 1996, the company has delivered intelligence-based products and solutions that automate workflow process management, transaction management, document hosting, integrated mobile solutions and communications management.

In the end, many in the industry are hoping that this change will prompt the mortgage industry to finally embrace the concept of Big Data. “In addition to the sweeping technology changes with respect to the RESPA-TILA rule to be enacted upon by August 2015, addressing ‘Big Data’ into 2015 from a technology perspective, will become more prevalent than ever,” pointed out Kathleen Mantych, the Senior Marketing Director at MRG Document Technologies. “Simply put, with regulatory compliance issues driving the demand for improving transparency and time to market, regulators are also pressing hard for the detailed data and all that encompasses the products and processes behind it. Additionally, there are heavy penalties if errors are discovered in the data reported.

“This scenario gives rise to a perfect business case for Big Data products and services to begin their debut into the mortgage market and leveraging their analytics to realize business benefits,” continued Mantych. “The technology can assist in identifying huge gaps and deficiencies in all facets of the loan life cycle from cradle to grave — the elusive true business analytics dream.”

MRG Document Technologies is a provider of legal compliance and dynamic compliant document preparation software technology to lenders nationwide. With more than 26 years of experience in the mortgage industry, Mantych has held executive sales, product and alliance management positions with key mortgage technology providers. MRG is a document preparation practice group within the law firm of Middleberg Riddle Group, putting the company in the unique position of its dynamic document content being created and tested by an in-house team of compliance attorneys. MRG owns its own legal content as well as its own calculation engine and compliance tests, ensuring accuracy for its lender customers.

But if you think this is just about data and forms you are mistaken. New regulatory change has the potential to reshape the entire mortgage process starting at the point-of-sale. Wayne Steagall, Founder and President at Lending Manager, predicts that in 2015, “online loan applications and lead generation will increase as lenders look to find more profitable ways to originate. Mortgage technology platforms will provide more integration options so a lender’s systems all work together instead of working in their own silos. This will help them identify new prospects and sales opportunities that may not have been identified before.”

Steagall adds, “Loan officers will incorporate more technology into their daily processes, as most top producers already do, in order to make themselves more efficient so they can focus their time on building new referral relationships.”

As President of Lending Manager, Steagall works to help mortgage companies take their business online. He works with both customers and partners to help streamline their mortgage processes through automation and technology integrations. Over the last 18 months Lending Manager has expanded to over 3,500 loan officers currently processing over $2 billion in loan applications online per month through their system.

“The most significant change we will observe is compliance-based technology driven by the regulatory landscape,” agrees Vladimir Bien-Aime, CEO at Global DMS. “The penalties for non-compliance range from stiff to completely astronomical due to the enforcement of new regulations issued by the Consumer Financial Protection Bureau. Lenders are going to want compliance technology baked in to all their mortgage applications, so users are locked down and there is transparency throughout the entire process. Monitoring and reporting will be critical for all aspects of the process including TILA, Servicing, and Section 342 the diversity requirements of Dodd-Frank to name a few.”

Global DMS, LLC provides innovative commercial and residential real estate valuation software solutions that meet the needs of the mortgage industry. The company was founded in 1999 to deliver technology for managing the appraisal process to promote compliance, reduce cost and expedite the real estate appraisal process.

The big question in all of this is: How will lenders react? Will they look to just patch the process or will they genuinely look to improve the process? For example, the appetite for correspondent has thawed, but there might be opportunities to resurrect this business channel in 2015 if lenders make smart technology decisions.

“I think that we’re going to have an even stronger demand to support the return of correspondent lending in 2015,” said JP Kelly, President at OpenClose. “There are lenders that are either looking to grow their existing correspondent channel or launch a new one. To successfully do this you need a number of different business components, one of which is a correspondent-facing technology platform. Put simply, we’re going to see technology innovation in correspondent lending.”

Founded in 1999, OpenClose is a provider of an enterprise-class, purely browser-based end-to-end loan origination system (LOS) that delivers its solution on a Software as a Service (SaaS) basis. The company provides a variety of Web-based solutions for lenders, banks and credit unions—from loan origination software to decisioning, reporting, website design and social media marketing. OpenClose’s LOS is also completely engineered by the same company, thus avoiding assembling best-of-breed applications or acquiring technologies in an effort to create an end-to-end platform.

In fact, more and more lenders are understanding the value of being purely Web-based and even mobile. “There are many mortgage technologies that are ‘Web-accessible’ via mobile devices; however, most lenders and vendors are yet to develop native apps for these devices, which makes for much better navigation, speed and efficiency,” said Justin Glass, Chief Digital Officer at United Wholesale Mortgage (UWM). “At UWM, we recently rolled out a native mobile app for our brokers that enables them to easily access various components of our broker portal, LOS and underwriting team, thus making it very easy to do business with us. We believe that a growing need for native apps will drive mortgage companies to significantly enrich the user experience with mobile technology in 2015.”

The work of innovative lenders like UWM demonstrates to me that the big story of 2015 won’t be about the rules, it’ll be about how innovative lenders stepped up and changed the mortgage process for the better.

About The Author

[author_bio]

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.

Mortgage Auld Lang Syne

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TME-DGreenAs we start the new year there’s no disputing we’ve sung our last Auld Lang Syne for at least eleven months. But there’s something about the song that bears thinking about.

First penned by Scottish poet Robert Burns in 1788, it asks, “Should old acquaintance be forgot?” Should we forget the past and the people from our past? Being rhetorical, we don’t have to answer, or do we?

So much of mortgage lending’s future hinges on its history. Sure, most of us would have preferred a clean slate these past few year-ends with the option to simply look forward. But circumstances didn’t allow. However, times have changed and 2014 is different.

Delinquencies and foreclosures are declining. Home prices are slowly rising. The employment picture is improving with all signs pointing to the return to a more normal economy and a steadier and potentially growing purchase money market. Assuming the next twelve months proves this, why look back when we have so much to look forward to? Because some of the answers to future success predate the housing crisis.

Getting borrowers more involved in the mortgage process to the point of enabling them to self-serve online dates back to the turn of the century. The first to finance their homes using the Internet found it a novelty. Today’s borrowers expect it. A recent survey by Accenture reveals sales of mortgages via the Internet increased 75% while sales at branches fell 16%. It’s clear: borrowers meet their mortgages and their lenders in the digital, rather than the physical world.

It is also no secret borrowers are a fickle lot. Long in the habit of changing lenders mid-stream, they do so for at least two reasons. The first is obvious. This is an intensely competitive business where every loan counts. More production is better; going all out for every loan separates winning lenders from all others. Borrowers, for their part, often do not know how to compare one loan from the next. Switching in the middle of the mortgage process, therefore, is often due more to perceived rather than real advantage.

Today’s borrowers are more emboldened than those from the early days of Internet lending. The housing crisis made real estate information ubiquitous. Borrowers, therefore, are savvier than they were and they now have a better idea how to compare loans and lenders. This is partially thanks to technology as well. Consumers increasingly live in the digital world. Always available information makes learning new subjects much easier and comparing options much simpler than it was even 10 years ago.

Fickle and emboldened, those financing homes this year and beyond also have greater expectations than their predecessors. All consumers, regardless of the good or service they are pursuing, want all possible information immediately, available wherever they happen to be on whatever device they have in their pocket, briefcase, backpack or purse.  A home loan is no different. If borrower allegiance were in question prior to 2007, no doubt today’s fickle, emboldened borrower is likely to be even less loyal.

Good to know, but what’s a thriving lender to do? Adapt to borrower behavior and aggressively convert applications to closed loans at much higher than historical rates. How? Transparency throughout the entire mortgage process that provides regular pro-active borrower contact from origination through closing.

Today’s compliance environment, too, has its origins in the housing crisis. On January 10 the industry awakens to lending under the Ability to Repay (ATR) and Qualified Mortgage (QM) Rules. Ability to Repay is the law; compliance is mandatory. Qualified Mortgages are optional. Lenders are free to lend outside the QM Rules. While there are implications to doing so, the reason to consider this move is opportunity.

Mortgage volume is projected to drop by more than $575 billion in 2014. Estimates of the percent of non-Qualified Mortgages being made today range from a low of 25% to as much as 60%. Using the lower-end estimates for the sake of argument, non-QM lending could help offset market contraction. Looked at another way, if the market shrinks by one-third and non-QM loans account for another 25% of market volume, what lender can afford to see its lending activity decrease by 55%? Non-QM lending bears serious consideration.

The Know Before You Owe (KBYO) Rules, too, go way back. When disclosure requirements changed in 2010, the lending community knew additional changes were coming. They arrived on November 21, and while they do not take effect until August 1, 2015, a good deal of work throughout the industry by all players will be required between now and then

Efficiency, and its analog cost-to-originate, is a subject that is as old as mortgage lending itself. It is also very much in the news as all lenders know. Costs have been rising steadily for many reasons since 2007. It is safe to say there’s general agreement that the time to rein efficiency in is now.

Returning to the fundamentals is one of the ways to do so. Successful lenders will cast their mortgage operations in a manufacturing light, building efficiencies by focusing on objective, repeatable processes. Unit-based measures become essential for both management and comparative purposes.

Loans have no concept of their size though the industry tends to focus more on dollar than unit volume. Total production in 2014 will be roughly 5.7 million units, the level at which the market is predicted to settle through 2015. Not only is overall volume lower, more than 60% of these loans will be for the purchase of a home, an almost exact swap with refinance from the year before.

Fewer, harder loans. Purchase transactions are more complex in that they typically involve more parties, often requiring more documentation and taking longer to close, all which conspires to drive down efficiency while increasing costs. Successful lenders, consequently, will diligently measure and track unit-based efficiencies, squeezing every possible improvement from tightly controlled loan manufacturing processes. The one metric to watch: closed loans per employee. The higher it rises, the lower cost to close typically falls.

These concepts are not new. They alone are a very good reminder of why forgetting the past is a poor idea. With last decade’s dawn of Internet lending came a renewed emphasis on measuring performance. This happened partially because it became easier with technology of all kinds spreading throughout the industry. It also happened because, for a brief time, the numbers got very good for those lenders that not only used the technology to its highest and best purposes, but also adapted strategy to take full advantage of their new tools. Then they paid relentless attention to performance, attentions that had to be diverted for obvious reasons. The time is now to study these lessons of the past and put them back into practice.

Technology, the newest of it, had its origins in the early 2000s as well. It is safe to say that in the space of less than 10 years, more tools were thrown at the mortgage lending process than in the previous five or six decades. Just as it’s time to focus on efficiency, it is also time to re-focus on technology. Winning lenders will likely be those who employ single, comprehensive systems that manage the mortgage origination process from application through closing. One system to rule them all – origination, processing, imaging, underwriting, papering, closing, funding and secondary marketing – is likely to drive efficiencies as well as aid compliance. This should reduce the cost-to-close as well; managing one system has its advantages.

Should auld acquaintance be forgot and never brought to mind? In the mortgage industry as in life, it is simply not possible. Simply looking at all the lessons learned from the past and drawing from them to enhance future performance is good enough of a reason to remember. Burns and the folksingers who begat the song knew that, too, though it is good to be reminded at least once a year, as we have, each year since 1788.

About The Author

[author_bio]

Dan Green
As Executive Vice President, Operations for Mortgage Cadence, Dan Green works with the team to create greater efficiencies in all areas and coordinating efforts that enhance service quality and teamwork. Formerly, Green served as Chief Operating Officer/Chief Marketing Officer of Prime Alliance Solutions followed by Marketing Lead for Mortgage Cadence. Prior to that, he had an eight-year career with CUNA Mutual Mortgage where he was responsible for origination, servicing, lending technologies, process reengineering and education. With over 30 years of financial services and mortgage experience, he’s keenly interested in lending performance and performance benchmarking that helps lenders constantly increase efficiencies while enhancing the financing experience for borrowers.

What Will 2013 Bring?

*What Will 2013 Bring?*
**By Tony Garritano**

***Here we are on the cusp of a new year. So, what will 2013 bring with it? Here are three trends that I think will be big in the area of mortgage technology in the coming year:

****The Year Of The eSignature

****It’s about time. We’re finally seeing the last barriers to eSignatures drift away. “In light of the IRS’ decision to accept eSignatures I am very optimistic about 2013,” noted Christian Wright, Director, Mortgage & Financial Solutions at CIC. “I think we’ll see FHA approval of eSignatures in 2013. I also expect a renewed interest in the full eMortgage. The mortgage industry as a whole will become more comfortable with eSignatures rather than less comfortable.”

****Compliance Is Still King

****Ankush Dham, director of technology products and services at ISGN, concluded that he “expects the emphasis on compliance to remain at the forefront of technology initiatives. Technology will continue to evolve to provide more automation around tracking of compliance. When the final disposition of regulatory changes are announced, technology vendors will be busy implementing changes and designing functionality that will allow clients to effectively originate compliant loans.”

****Simply put, “Compliance tools will continue to emerge to support lending decisions and servicing measures,” added Kelli Himebaugh, Corporate Vice President, Mortgage Builder Software. “Experience has shown us that “best efforts” are not always enough to satisfy regulators, so additional tools and enhancements will increase visibility into all stages of the mortgage process, from origination through servicing.

****“Reporting and event tracking are perhaps the most obvious, with everything from email and conversation logs, to inspection and valuation reports open to regulator scrutiny. LOS solutions are well positioned to provide this, particularly as they include 4506-T results and every other conceivable document in electronic format. Digital document management will become a necessary part of the origination process in order to provide the transparency the new environment demands. Well-integrated pricing engines will record the loan program alternatives made available at the time of origination, bringing clarity into the fair lending concerns of various regulators.

****Servicing systems are under renewed scrutiny, and platforms aimed at the mid-tier segment will benefit from greater harmony with the LOS systems that create the loans they service,” concluded Himebaugh. “Presently, many of the steps required to transfer information from one to the other require intermediary steps where errors can occur. Systems that are designed to work together can enhance compliance by eliminating human error to a much greater degree.”

****Count Every Dollar

****Compliance aside, the other big issue for lenders in 2013 will be how they control their cost to lend. With refis making up less of the market, lenders have to smarter about how they go about creating the most cost effective lending process. “Leveraging technology to combat these rising costs is essential for all lenders, especially in the community bank market,” pointed out Daniel Liggett, Director of Client Services for Associated Software Consultants’ PowerLender Loan Origination & Processing System. “Sound business practice has these lenders turning to trusted third-party providers for their compliant technology solutions rather than attempt to maintain it in-house.

****“These lenders will continue to turn to technology providers that provide solutions that are flexible and cost effective and have the ability to deliver tested compliant solutions in an accurate and timely manner.

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.