The Future Of Paperless Lending


Today’s paper-intensive, home-financing process can seem archaic to millennials and other borrowers accustomed to the effortless nature of today’s many digital services. While a paperless mortgage world remains a dream, an annual Xerox survey reveals an accelerated pace toward making it a reality.

Key findings in the 11th annual Xerox Path to Paperless Survey pointing to a rapidly changing mortgage landscape include:

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Accelerated Paperless Delivery Adoption: About 78 percent of the mortgage professionals polled have technology in place for eDelivery of disclosures or other documents to borrowers — an increase of 15 percent from the previous year.

More Borrowers to Receive Documents Electronically: An overwhelming majority of respondents — 92 percent — expect an increase in their use of eDelivery as a result of the TILA-RESPA Integrated Disclosures rule, helping offset closing delays as the industry adapts to the new regulation (only 15 percent cited a smooth implementation of TRID).

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eMortgage Optimism Rising: More than half of respondents (51 percent), compared to 33 percent the prior year, believe that half of all loans will be closed as eMortgages in four years or less.

“While completely digital mortgages are not yet the norm, our survey shows continued movement away from shuffling paper from one desk to another and toward online platforms that enhance communication between all parties at every stage of the loan,” said Jeffrey Nuckols, senior vice president of Xerox Financial Services. “The new regulatory effort to improve the mortgage process comes at a time ripe for engaging today’s borrowers who increasingly demand an interactive, digital experience.”


How Do Lenders Feel About The E-Mortgage Today?

We’ve been talking about the electronic mortgage since the 1990s. Will it ever happen? Well, actually, it is happening now, but it’s still not mainstream. Here’s what a new survey says lenders think about the e-mortgage today:

Today’s paper-intensive, home-financing process can seem archaic to millennials and other borrowers accustomed to the effortless nature of today’s many digital services. While a paperless mortgage world remains a dream, an annual Xerox survey reveals an accelerated pace toward making it a reality.

Featured Sponsors:

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Key findings in the 11th annual Xerox Path to Paperless Survey pointing to a rapidly changing mortgage landscape include:

  • Accelerated Paperless Delivery Adoption: About 78 percent of the mortgage professionals polled have technology in place for eDelivery of disclosures or other documents to borrowers — an increase of 15 percent from the previous year.
  • More Borrowers to Receive Documents Electronically: An overwhelming majority of respondents — 92 percent — expect an increase in their use of eDelivery as a result of the TILA-RESPA Integrated Disclosures rule, helping offset closing delays as the industry adapts to the new regulation (only 15 percent cited a smooth implementation of TRID).
  • eMortgage Optimism Rising: More than half of respondents (51 percent), compared to 33 percent the prior year, believe that half of all loans will be closed as eMortgages in four years or less.

“While completely digital mortgages are not yet the norm, our survey shows continued movement away from shuffling paper from one desk to another and toward online platforms that enhance communication between all parties at every stage of the loan,” said Jeffrey Nuckols, senior vice president of Xerox Financial Services. “The new regulatory effort to improve the mortgage process comes at a time ripe for engaging today’s borrowers who increasingly demand an interactive, digital experience.”

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Additional survey findings supporting the path to paperless include:

  • Millennial Engagement: With millennials representing the largest segment of recent homebuyers[1], the majority (51 percent) of respondents have applied new business strategies or introduced new technologies to appeal specifically to this tech-savvy generation (commonly ages 18 to 34). A social media presence (51 percent) and a consumer portal (43 percent) are the most popular implementations among respondents to attract millennials.
  • Going Mobile: Thirty-two percent of respondents are leveraging smartphones and mobile tablets in their business transactions – doubling from 16 percent in 2014.
  • Simplifying Signatures Remains Key: eAcknowledgment and eSignatures is considered “very important” by 61 percent of mortgage professionals – making it the top-rated feature in technology evaluations for the second consecutive year. This feature allows borrowers to sign virtually and eliminates the need for lenders to tote and manually track paper documents.

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New Paperless Trends Emerge

*New Paperless Trends Emerge*
**Data Shows Advances**

files***In its ninth Path to Paperless study Xerox Mortgage Services found that even with compliance demands front and center, 63% of respondents noted having electronic document solutions in place, compared with 55% in 2012, which underscores the commitment to adopting paperless technologies in the near term. Here’s what else they discovered:

****The survey showed other positive trends in the acceptance and implementation of electronic initiatives, including:

****>> 78% of respondents’ companies are implementing technology to handle the flux of the industry.

****>> 45% feel their LOS’s imaging capabilities are lacking – they either use the capabilities but do not consider them sufficient or do not use them due to considering them insufficient.

****>> 76% of respondents prefer solutions that accommodate paper-sourced, imaged and electronic documents, and 75% value solutions that work seamlessly throughout the entire loan lifecycle.

****>> 80% of respondents cited decreased turnaround and processing time per loan, and 78% cited decreased processing costs per loan as benefits of going paperless.

****You can request a copy of the Path to Paperless Survey HERE to see how your paperless technology initiatives compare to your peers. The survey results represent a cross section of industry executives and functions ranging from origination, underwriting, closing and more.

The Road To Paperless

*The Road To Paperless*
**By Tony Garritano**

TonyG***Paperless doesn’t start with a SMART Doc, it starts much smaller. For good or bad, lenders never take the full leap when they can take baby steps instead. That’s why every integration to help lenders get closer to paperless counts. For example, Wipro Gallagher Solutions, a Wipro Technologies company and an end-to-end provider of lending products and services, has launched an integration with the Xerox Mortgage Services BlitzDocs intelligent collaborative network to provide lenders with improved communications and enhanced document imaging.

****The partnership seamlessly integrates WGS’ NetOxygen LOS loan origination software with BlitzDocs’ electronic loan folder (eFolder). BlitzDocs advanced security settings enable all industry participants – lenders, due diligence providers, MI companies and more – to collaborate on the same documents throughout the entire loan process. NetOxygen combines this utility with its automated platform to streamline service and data management capabilities. The alliance increases productivity and security by connecting lenders with all their trading partners simultaneously, from origination to post-closing through servicing.

****“Combining WGS’ NetOxygen with BlitzDocs provides lenders with a comprehensive, best-of-breed product that greatly simplifies the loan origination process,” said Ken Marlin, general manager and vice president of Xerox Mortgage Services.

****Through the integration, a BlitzDocs eFolder is automatically created, with files displayed in the lender’s defined view and mapped to WGS’ naming standards to ensure compatibility with their underwriting capabilities. BlitzDocs also supports one-click delivery to more than 25 investors – electronically shipping closed loan folders in the investors’ predefined stacking orders. Supporting lenders through every step of the origination process, the integration greatly speeds loan purchase.

****“The strategic partnership offers lenders increased flexibility and better workflow management to complete the origination of new loans more effectively,” said Narayan Bharadwaj, business head and general manager at Wipro Gallagher Solutions. “No two lenders are alike, and this integration ensures that, no matter the situation, the combined functionality of these products will meet any lender’s specific needs.”

Will Xerox Continue To Be A Thought Leader?

*Will Xerox Continue To Be A Thought Leader?*
**New Head Speaks Out**

thinker***Xerox Mortgage Services has a long history of being headed up by industry thought leaders. There’s no denying the role both Greg Smith and Nancy Alley have played in advancing paperless processing. Now the company has named Ken Marlin as its new VP and general manager. How does he stack up to his predecessors? PROGRESS in Lending sat down with him recently to ask him a few probing questions. Here’s what he said:

****QUESTION: Describe your industry experience for our readers Ken.

****KEN MARLIN: I’ve been here at Xerox Mortgage Services for over 15 months. During that time, I’ve been focused on building out partnerships and the platform itself. I’ve been in the mortgage business for over 20 years. I started as a loan officer and I’ve worked in every business unit imaginable when it comes to mortgage lending.

****QUESTION: How do you think your style compares to Greg Smith and Nancy Alley?

****KEN MARLIN: Moving into the general manager position was the next step for me. Nancy, and Greg Smith before her, left a well-oiled machine. I’m moving into comfortable shoes. We are constantly rethinking how the industry does business so we can improve and advance our industry.

****QUESTION: How will Xerox Mortgage Services change under your leadership?

****KEN MARLIN: This will be a continuation. We have always looked to build out a collaborative network. Everyday we are getting closer to the data. The industry can expect us to do deeper integrations and improve the overall mortgage process.

****QUESTION: How do you see the mortgage industry evolving over time?

****KEN MARLIN: This is an interesting time. We have enjoyed good volume, low interest rates and a lot of refinancing. As interest rates now start to inch up, we see lenders looking closer at improving their process to find efficiency, which is ideal for us because that’s what we do.

****QUESTION: Now look into your crystal ball. Where will the mortgage industry be five years from now? More of the same or drastically changed?

****KEN MARLIN: There’s always buzz around the CFPB and new regulation in general. In my view, new rules are always painful, but the new rules are causing some positive things to happen. We’ll come out much better, as an industry, on the other side of these regulatory shifts.

Market Analysis: Some Final Thoughts

*Some Final Thoughts*
**By Tony Garritano**

***For the past two days now I’ve been talking to you about exactly how many people go into processing a loan. It’s been a good journey of discovery for me. Process improvement is critical to our industry so we need to really understand what we’re improving first. I hope after reading these past few days you have a better idea of how intricate the mortgage process really is. So, how do we really improve the process? Here are some ideas:

****“The loan process continues to be extremely complex. At Xerox Mortgage Services, we are seeing our BlitzDocs users hand-off loan files through electronic collaboration as many as 20 times during the origination process,” noted Nancy Alley, vice president and general manager, Xerox Mortgage Services. “This collaboration occurs both internally – with participants like LOs, processors and underwriters – and externally – to the borrower and trading partners such as verification companies, MIs, closing agents and investors. At each hand-off, specific loan documents need to be reviewed while other documents are being added.”

****How do lenders feel about this topic? LeaderOne Financial was founded in 1992 by its CEO, A.W. Pickel III, a past president of the National Association of Mortgage Brokers. In 2011, the company originated nearly $500 million in mortgages through its retail loan officers and was named one of the fastest-growing private companies by Inc. Magazine (#12 in the nation among financial services companies).

****Mr. Pickel shared, “We were among the first lenders to go paperless. I don’t think most lenders process a loan differently. As I said, we are paperless lender. So, we’re doing all of this electronically. I don’t see how I can use technology to make the process more automated. As it is for us, we don’t paper out until closing. All the steps are done electronically here and the e-file is handed off to these different individuals. We don’t paper out here until closing. An electronic closing would be ideal. That’s where we need to go. Right now technology allows me to have a few people that are really good at what they do. These are people I trust. They do a great job.”

****Rebecca Walzak, president at consulting firm rjb Walzak Consulting Inc., agreed, “The process itself hasn’t changed very much. I remember when we had runners that would collect all the documents and order credit. Once we got the credit report back we’d go through it manually. Now all the ordering of outside services is electronic and we get back data that can be electronically reviewed. However, the processor still pulls it all together, checks everything and moves it along. Hopefully going forward technology won’t just automate traditional processes, it’ll go further to actually improve the process.”

Market Analysis: Advancing The Cause Of Paperless Processing Further

*Advancing The Cause Of Paperless Processing Further*
**By Tony Garritano**

***Anyone who has purchased a home is familiar with the stack of paper that has to be signed to finalize the loan transaction. Less known are the challenges lenders face to get the loan to the closing table–complex interactions behind the scenes, multiple participants needing access to the same file and regulation requirements for data transparency. PROGRESS in Lending has learned that Xerox Mortgage Services is helping lenders simplify the process with new features for its BlitzDocs intelligent collaboration network. Here’s the scoop:

****To help both internal and external participants work together more effectively, BlitzDocs’ new advanced workflow capabilities automatically queue loans to accelerate the process from origination to closing. In addition, using the new manager dashboard, lenders can track loan status and better manage productivity and workload across various people and processes.

****BlitzDocs now also provides annotation capabilities that allow lenders to easily edit, sign and comment on paper-based images and electronic documents rather than printing out documents to hand write notes or add signatures. BlitzDocs supports multiple versions of annotated documents so lenders can choose what is viewed by third parties and which version is sent to investors. Lenders also benefit from an audit trail showing who made the notes and when.

****“The enhancements made to BlitzDocs are well thought out and take our paperless collaboration to the next level,” said Jennifer Edwards, vice president of Town and Country Banc Mortgage Services, Inc. “BlitzDocs continues to help us simplify our processes and allows us to connect with all necessary parties from origination to post-closing.”

****Lenders working with Xerox Mortgage Services benefit from an extensive network of BlitzDocs certified partners and providers, now including Medallion Analytics and MRG Document Technologies.

****“To save time and adapt to industry regulations, lenders are recognizing that basic imaging is not enough – they need to extend collaboration beyond their own business,” said Nancy Alley, vice president and general manager of Xerox Mortgage Services. “Xerox is driving this industry change with new technology and a growing network of partners that make it easier for loan participants to work together to meet borrower needs and stay one step ahead of changing regulations.”

Understanding The News: Companies Link To Ensure Compliance

*Companies Link To Ensure Compliance*
**Xerox Looks To Compliance Experts**

***Got compliance on your mind? Most lenders do. It’s a tough market from a regulatory standpoint and it’s going to get tougher. That’s why proactive vendors are stepping up to provide education and technology to help lenders keep compliant. Along these lines, Xerox Mortgage Services has some big plans. Here’s the scoop:

****MRG Document Technologies, a document preparation software and compliance technology, and Georgia-based Xerox Mortgage Services are combining their experience and expertise for an educational webinar that will provide lenders valuable insight into the ever changing regulatory challenges facing the market, and innovative approaches to overcoming them.

****Doing “business as usual” is no longer the answer for lenders who are looking to effectively deal with extremely complex regulatory requirements. The time to move the industry forward is now. Many lenders are unsure of how these changes will affect their business and what steps they need to take. To that end, they are turning to technology to support compliance and eliminate risks.

****The “Supporting Compliance Throughout the Loan Lifecycle” webinar, which will take place on Tuesday, May 15, 2012, at 1:30 pm EDT, will highlight the current state of the regulatory environment and what integrated partners are doing to assist the lending community. Discussion will focus on the importance of change and collaboration and how current rules and regulations are impacting lending.

****“The benefit of this collaborative, educational webinar is to assure the marketplace that their concerns are being heard and addressed by the vendor community – action is being taken,” said Kathleen Mantych, senior marketing director, MRG Document Technologies. “In this session, we’ll provide lenders with a “real world” view on the industry landscape and how collaboration between vendors combats the risk of non-compliance, state audits and potentially dramatic fines.”

****“Lenders can better support compliance when they have easier access to their data. Solutions such as MRG Document Technologies’ dynamic forms help lenders quickly adapt to new regulations and work more accurately as a result,” said Nancy Alley, vice president and general manager, Xerox Mortgage Services. “This webinar is an example of the benefit lenders gain from the BlitzDocs network, which consists of industry leading companies who have extensive expertise in their respective specialties.”

****MRG Document Technologies current collaboration with Xerox Mortgage Services enables their dynamic forms to be seamlessly passed into BlitzDocs for intelligent collaboration.

****Also, Medallion Analytics, a mortgage technology company that provides compliance and control across the entire loan origination process, announced that its Medallion QC Audit solution is now integrated with Xerox Mortgage Services’ BlitzDocs intelligent collaborative network.

****BlitzDocs simplifies and accelerates the loan process by connecting participants so they can electronically collaborate. By adding Medallion’s QC Audit tool, BlitzDocs users will benefit from an automated quality control check, including a complete audit report within minutes – eliminating the need for manual review of each element and cutting loan processing time even further.

****“The combined capabilities of Medallion’s and Xerox Mortgage Services’ technologies demonstrate the power of next generation paperless mortgage processing, driving down cost and processing time, while dramatically enhancing quality and compliance,” said Joel Davidson, CEO of Medallion Analytics. “With Medallion’s unique ability to extract and analyze content from mortgage documents and convert it into usable data, not just images, Medallion gives loan originators a breakthrough solution to automate the entire pre- and post-close loan origination audit process.”

****Using Medallion’s technology, lenders can spot data integrity and compliance issues in real time, eliminating costly errors of manual review, while embracing evolving regulatory requirements — enabling loans to be processed dramatically faster for borrowers.

****“In today’s stringent environment, lenders need faster, easier ways to maintain accuracy and transparency of the data,” said Nancy Alley, vice president and general manager, Xerox Mortgage Services. “With the addition of Medallion QC Audit, Xerox Mortgage Services continues to improve the paperless mortgage process and provide additional compliance safeguards to our BlitzDocs users.”

Market Analysis: Putting A Premium On Experience

*Putting A Premium On Experience*
**By Tony Garritano**

***Yesterday I told you about my friend Tim Anderson moving from LPS to ISGN. Tim has been promoting SMART Docs and the e-mortgage all of his career. He’s a true believer. And I think the time has come. With all the compliance demands, lenders need to automate. It takes a leap of faith, but now is the time to leap. For this very reason mortgage technology companies are increasingly looking to bring on visionaries like Tim to help their lender clients move in this direction. Along these lines, I just heard that Xerox Mortgage Services has brought on two such experienced executives. Here’s the scoop:

****Xerox Mortgage Services has hired Ken Marlin as Vice President of Business Development and Bryan Young as Vice President of Product Management. Charged with expanding the network of Xerox’s BlitzDocs certified partners and providers, Marlin will help lenders, brokers and investors benefit from an expansive network of best-of-breed providers to promote electronic collaboration from origination to the archival of a closed loan.

****“I bring a thorough, practical understanding of the business,” noted Marlin. “I started as an LO before I moved to the vendor side doing RFPs and working on technology implementations in large lenders. Plus I’ve done so many things in the business that I’m very fortunate. I’ve dealt with the business from many different perspectives so I know a lot about the different roles. On top of that, I grew up in a family-owned business. So, making a profit and delivering the highest form of customer service are instinctive to me.

****“At Xerox Mortgage Services I will be building out the bi-directional network. The starting point is that we have a network with industry standard providers. We don’t know the new providers that will be coming into the business that are not strapped with legacy systems that Tim Anderson mentioned when you talked with him yesterday, but we’re eager to meet them. I’m anxiously looking for those new faces. We want to drive services to the lender. The way to do that is through the LOS. So, I’ll look to tightly integrate with as many LOS systems as I can.”

****Bryan Young is tasked with keeping pace with the changing regulatory environment and ensuring the BlitzDocs solution continues to help lenders promote data transparency within the mortgage process.

****“By adding to our experienced team, we’re even better prepared to help our customers respond to changing market conditions and help them find new ways to collaborate, innovate and grow,” said Nancy Alley.

****Marlin previously served as a national account executive and the alliance manager for the mortgage division of Wolters Kluwer Financial Services. Young spent the last decade at Erxchange, a division of Xerox Services.

****“When I was at WKFS, Xerox Mortgage Services stood out as a tool and a company that had great customer satisfaction,” added Marlin. “I always liked the tool because it prepares lenders for the cloud and full e-mortgages. I was also impressed with Nancy Alley. She is fresh, energetic, visionary and she isn’t saddled with a legacy mentality. It’s all about the people you work with.”

****Going forward, Marlin sees more industry contraction and technology acquisitions, but thinks Xerox Mortgage Services will take a different path. “From an industry perspective, I see consolidation of providers. I think we’ll see acquisitions to gain share,” he concluded. “At Xerox Mortgage Services we will stay the course and look to pass data more successfully. We’ll continue to march toward the e-mortgage and be vendor agnostic. We want to move the whole industry toward full ‘e’ processes.”

Magazine Cover Story

*Looking To The Future*

**Executive Interview**

***Nancy Alley is not new to the mortgage space. She has been around the block. However, now she has a big company in Xerox Mortgage Services to shepherd. What does she bring to the table? Well, if Nancy’s history is any indication, she is ready to help struggling lenders forced to deal with decreasing volume and increasing regulation move their business to the next level.

****Back in the late 1990s Nancy co-founded a company that offered electronic signatures and electronic vaulting to the mortgage space. This technology is just now gaining its footing, but Nancy was there from the start evangelizing and doing her part to move the industry forward. She’ll bring that pioneering spirit to XMS. Here’s her take on the future of XMS and the mortgage industry:

****Q: For a lot of people, imaging and paperless are synonymous. What’s your take on how the definition of paperless has changed in the past five years?

****NANCY ALLEY: When you think about paperless and take a step back, it was really just about getting rid of paper five years ago. We are in a very paper-intensive industry. So, paperless started with just replacing paper. What did that mean at the time? People started scanning documents and it was limited to a few departments within the lender shop. I would argue that paperless is so much more. You can now manage, share and collaborate on images and electronic documents. Further, as we go into the future you’ll be able to manage, share and collaborate using data. We’re moving along this evolutionary path. We are not talking about how you get rid of paper with our clients because most have done that already. Now we’re talking about electronic collaboration. When you think about collaboration, it has to bust outside of the lender’s walls. It can’t just be internal. It has to be cradle to grave. That’s my vision.

****Q: Do you think the UMDP initiatives are going to help or hurt the industry?

****NANCY ALLEY: This is a hot topic. In the past couple of years, this industry has seen huge change. Change is always painful at first, but I’m a big supporter of these initiatives because they will push this industry to the next level. How? These initiatives will drive paperless adoption and true electronic collaboration. This forces us to go even further and move away from being document centric to being data centric. Right now lenders have data in different systems, but they may not talk to each other and that data may be in different formats. That now changes. To have the transparency to truly analyze everything that we’re doing is key. I think this makes that possible.

The other positive piece that is not specific to UMDP, but relates to UMDP, is that UMDP mandates the use of MISMO data standards. That’s a good thing. Historically we have always had proprietary systems and data formats that don’t talk to each other. So, we do have to get over the pain of change, but once we get passed that as an industry, this will be a great thing.

****Q: Let’s talk about you for a bit. You recently were named the GM of Xerox Mortgage Services. What are your plans for Xerox Mortgage Services?

****NANCY ALLEY: I’m excited to accept this position. I would have never agreed to do this if I didn’t think we had bright days ahead. Greg Smith coined a lot of phrases, but before he left he used to say that we don’t skate to where the hockey puck is now, we skate to where the puck is going. I agree with his philosophy. That’s what we’re going to do. We are going to skate toward the future. The future is about data. Part of what we’ll be doing is becoming more data centric so our clients can collaborate based on data and not just documents.

Also, the XMS Network is very important. The network is central to my vision for XMS going forward. You don’t want to limit yourself to a solution in your walls, you want to communicate out in a seamless way. That’s how you drive true ROI.

****Q: As the founder of what was Advectis and the BlitzDocs product, we all know what Greg Smith brought to the table, but what does Nancy Alley bring to the table? How is XMS going to be different under Nancy Alley?

****NANCY ALLEY: If you look at how Greg grew the company, you go back to the evolution of paperless. He did an amazing job of getting lenders to go paperless. I believe that one of the reasons Greg hired me was because of my tireless dedication to driving the e-mortgage. I am going to steer XMS down that road. I am going to make sure our clients have a roadmap to get to the full e-mortgage.

I also lead the efforts with BlitzDocs XE. My expertise around e-vaults has already shown itself within our product offering. I think Greg letting me develop XE was a test to see what I would do with his baby. We are going to continue to build that out.

****Q: Next year is the five-year anniversary of Advectis being acquired by Xerox. How has Xerox Mortgage Services leveraged its relationship with Xerox and its sister companies?

****NANCY ALLEY: Advectis was the original company. They had a great solution and great people. None of that has changed. However, we can now leverage Xerox so we can integrate services that we couldn’t provide PRIOR. For example, the goal of XE is to fulfill electronically, but we don’t live in a perfect world. If the customer opts out we can seamlessly deliver the package through the mail in paper form. We also see a lot of demand for business process outsourcing. We can offer that and work on the file to do things like data extraction. At our fingertips we have all these other entities that we can leverage.

****Q: The MBA predicts the loan volume to drop off significantly in Q4. How can lenders use technology to survive?

****NANCY ALLEY: If we in the mortgage industry have proven anything in the last few years, it’s that we’re a tough bunch. I have no doubt that the industry will survive, but we have to be more flexible, which is where technology comes in. Lenders need to be looking at solutions that drive automation and collaboration. As volume drops off you need to figure out how you’re going to make money. The solution also has to be flexible because volume changes. One thing to look at is volume-based pricing to tie costs with your volume. As an industry we can’t stop innovating, but when you buy technology you need to make sure that it goes cradle to grave and improves the whole process. Nobody can afford to do big pilots, they need technology that will improve their process now that can solve their problems. To this end, the technology should be able to manage exceptions and be agile. As volume dips, that’s where you get revenue and ROI.

****Q: What is the state of the industry and where do you see it going?

****NANCY ALLEY: We all read the papers and watch the news, there’s still a tremendous amount of uncertainty. As volumes drop we are warned that volumes will drop further. We’re also told that interest rates will increase. I don’t see light at the end of the tunnel, but it’s not all bad news. Lenders are getting comfortable working in these tight conditions.

Getting more granular, I like where we’re going in terms of the data requirements. I hope this is the push we need so we can effectively and transparently share and collaborate on docs and data. We are a member of MISMO and I’m excited about MISMO acceptance. The more we can share data and collaborate based on data, the better the industry will become.

****Q: With the rise in regulations and changing market dynamics, what are lenders’ biggest pain points and how are they leveraging technology to overcome them?

****NANCY ALLEY: Lenders struggle with the constant flow of new rules. There are always new rules being thrown at them. The politicians are always thinking of something new. Lenders are now worried about UMDP. Are they ready? Are their appraisals in the right format? Will they be able to send to the GSEs in the right format? That’s just one example. As I look at that pain points, that’s why you need to leverage your vendor. Your vendor has to make sure that you’re ready. So, lenders need to continue to use technology and expect that their vendor partners to step up to help them navigate these new rules.

****Q: Last question: How would you define the state of innovation in the mortgage industry today?

****NANCY ALLEY: As a technology provider we always want people to be proactive, but it’s a balancing act for lenders. During difficult times you are forced to look at how you do things, how you can do things better, and you’re forced to innovate. We are looking at how we can assess the market and provide a tool that solves business problems. Having said that, you can’t innovate just to innovate, you have to innovate to improve what you’re doing. For example, you may be innovating by providing electronic signatures on disclosures. That’s great, but you need to do that with all your disclosures, for all your loan types, with all your borrowers. So, we need to innovate, but we need to innovate comprehensively.


****Nancy Alley thinks:

****1. Lenders will spend their technology dollars on comprehensive solutions that can easily and seamlessly manage exceptions.

****2. The definition of paperless will progress from basic imaging capabilities to the ability to collaborate on documents and data from cradle to grave.

****3. Lenders will no longer define all-in-one, or end-to-end, by the software system they use, but rather by the extent of their vendor’s reach to other partners throughout the mortgage lifecycle.

****ABOUT NANCY ALLEY: Nancy Alley brings more than 20 years of financial services and mortgage industry experience to her role as the vice president and general manager for Xerox Mortgage Services. In her previous role as vice president of product management for Xerox Mortgage Services, Alley managed the company’s document collaboration solutions, BlitzDocs and BlitzDocs eXtended Edition. Alley also previously led the product management and engineering efforts of eSignSystems, a leading eSign and eVaulting provider; and spent eight years at GE Capital Corporation developing her product management and business development skills in the mortgage banking technology area.