As the focus turns to increasing efficiency, reducing cost and maintaining compliance, the mortgage industry has become keenly focused on going digital. Prominent mortgage industry executives gathered in Washington, DC at the 8th Annual PROGRESS in Lending ENGAGE Event sponsored by Get Credit Healthy, QuestSoft and Optimal Blue, to really drill down on this industry trend. Why is the digital mortgage such a big deal? Here’s what was said:
Doing a digital mortgage means that you are originating a more compliant loan. “We have 10% post closing QC now, but that’s archaic,” says Leonard Ryan, President at QuestSoft. “We have pushed all that compliance to the frontend. We are not doing that to stop the loan, we’re doing it to get things done right as early in the process as possible. That’s what a digital mortgage does for you.”
“If you think about it, there are a lot of disparate systems in the mortgage space that all have different functions and purposes,” added Michael Kolbrener, Chief Technology Officer at PromonTech. “A mortgage is the biggest financial transaction that people will do in their lifetime. So, you have to approach it from the standpoint of creating the most efficiency. All of the systems should work together to get and validate the data needed to do that loan. We are in a data business, so we need to use technology that is truly data driven.”
“Also, we’re dealing with people. A mortgage is very personal and a digital mortgage does not negate that,” continued Jim Obsitnik, COO at Capsilon. “Here at Capsilon we look at the process end-to-end and the common thread is the data. There are a lot of native data sources that we can access. Data is key. You need to drive ROI for the borrower, for the lender, for the LO, for the investor, for everyone. The digital mortgage allows you to achieve that goal.”
So, how do you do that? “Artificial Intelligence or AI is very new to the mortgage industry, but it’s going to play a critical role,” pointed out Alok Bansal, Vice President and Business Head at Wipro Gallagher Solutions. “We talk a lot about the borrower experience in mortgage today, but this industry is really playing catch up. Take Uber for example, they have automated the entire taxi/transportation process and it’s all transparent to the end user. AI is going to help that happen for mortgage lending.”
The last part of the puzzle is eClosing ad eNotarizing. When will that get broad industry adoption? It’s happening today according to Kelly Purcell, EVP. Marketing and Business Development at NotaryCam. “I’ve been on the eSigning bandwagon since the beginning. D-Day for eSigning really happened back in 2000, but eSigning still didn’t go mainstream right away. We had to educate the industry and move adoption one lender at a time and it was painful at times. Sometimes I felt like I was working at a not-for-profit. I see eNotarization and eClosing the same way. We have reached D-Day and now we’re educating the industry. The difference is that lenders really want to listen and move on this. Full digital mortgages are happening and it is for the betterment of everyone.”
About The Author
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 email@example.com.