TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/106030
The pulse Catalysts for Change A new study from Genpact exposes the industry's technological conundrum, indicating that some originators and servicers are struggling with adaptation to solutions that seek to mitigate—not create—challenges in the marketplace. E valuating key challenges in the mortgage marketplace, Genpact Limited went straight to the source, tapping originators and servicers for feedback on the tools and solutions they're utilizing to improve and streamline processes throughout the loan cycle. Collaborating with SourceMedia to conduct its survey, Genpact polled more than 300 decision makers from single-family residential mortgage lenders and servicers to find out what strategies are successful now—and what changes are needed to support the industry's regulatory evolution. Headlining Headwinds: There's Your Trouble: It's a Process: Don't Lose it: Out with the Old: Getting specific regarding concerns in today's marketplace, originators and servicers made it clear that adaptation issues resulting from new rules and standards present the most significant operational roadblocks: Elaborating on inefficiencies in existing workflow systems, mortgage professionals cited laborious processes and a lack of amalgamation among their top complaints: Feedback from originators and servicers indicated that though most are confident in their current processes and technology solutions, many plan to review and possibly update their technological approach in the year ahead. Servicers revealed their loss mitigation processes, showing that manual and semi-automated systems remain pervasive despite concerns over inadequacies within laborintensive methods. Conveying plans for changes and upgrades to current processing and technology solutions, originators and servicers displayed a desire for evolution in the near future. Dealing with the dynamics of changing regulations Labor-intensive manual systems Outdated or slow technology Multiple systems Keeping up with evolving technology Lack of integration Initiating constant process improvements Lack of scalability, support, and/or workflow Management {75%} . . . believe current processes and technology solutions are effective {91%} . . . are likely to reevaluate current processes in the next 12 months {90 %} . . . are likely to improve technology to enhance workflow management in the next 12 months 18 | The M Report {67 } % . . . use paper worksheets {88%} . . . use semi-automated spreadsheet templates {50 } % {77%} . . . of originators and servicers are likely to consider a business process or technology management provider to accomplish all or part their workflow efforts in the future {20%} . . . use commercial, offthe-shelf automated decisioning engines . . . of servicers plan to use manual or paper worksheets 12 months from now {37%} {10%} . . . have developed custom, automated decisioning engines . . . of servicers plan to use spreadsheets 12 months from now