More On Mobile Adoption

*More On Mobile Adoption Trends*
**What’s Next?**

***Yesterday we discussed how mobile technology is starting to pick up in our industry. Today, let’s continue that conversation by discussing who will be going mobile and who won’t.

****“Not every piece of the mortgage process is mobile-friendly – for example, I don’t think we’re going to see loans being underwritten on smartphones,” explained Mark Coupland, VP Business Development at LoanSifter. “But I think mobile devices will have a huge impact on the front end of the lending transaction. As a loan officer meets with a borrower away from the office, there is a growing desire to price, qualify, and initiate that transaction on a mobile device. In that same meeting, a borrower could submit a basic application through a lender’s mobile-friendly website to get the process started. Although mobile solutions add convenience and ease, compliance will be a critical part as you still must follow regulatory requirements, even when on the go. Mobile solutions must be well-thought out, to be sure. Appraisers and others in field services are using mobile devices with great success already, and I have no doubt originators will leverage them more in 2013, particularly as tablet devices become more prevalent.

****“We will certainly see a push to provide more mobile tools to loan officers, title agents, real estate agents, and consumers,” added Tim Armbruster, Chief Technology Officer of ClosingCorp. “I expect to see an explosion of these types of services in 2013 and 2014. Nearly every service provider is working on a mobile strategy or has already released mobile applications. With that said, there are still several issues that need to be addressed in the mobile space. Information security on mobile devices will continue to be a concern and a growth retardant for lender adoption. Much of the work in loan origination still happens on desktops, so mobile is still not the right fit for many functions in the space. There are also usability issues with mobile. For example, I don’t see borrowers filling out an entire loan application on a mobile device, but I do see that happening online.”

****But what do lenders think about mobile technology? Are they ready to embrace this technology? “Lenders are so busy catching up with the refinance volume, preparing to shift to a purchase market, and CFPB compliance management that they are not significantly focused on new technology that does not directly support efficiencies in those areas,” answered Daniel H. Jacobs, Managing Director, Retail Branching Division at Residential Finance Corp. “The first round of significant mobile integrations we will see will emanate from major LOS providers duplicating the most basic of functions of their core products. There is no widespread consensus on how to use mobile to enhance the consumer experience. Until the focus of mobile is on the consumer experience, we will not see any wide spread trending of integrating mobile technology into mortgage lending operations.”