MReport November 2020

TheMReport — News and strategies for the evolving mortgage marketplace.

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20 | M R EP O RT FEATURE part, it's all they have available to them—but that is changing. Getting Over the Innovation Hurdle B ringing real innovation to the mortgage technology business requires a new kind of thinking, a level of courage that few com- panies have exhibited over the past decade. There are potential hurdles involved in creating the kind of change that mortgage lenders need today. It takes a high level of commitment and investment to get over the hurdles that cur- rently stand in the way of technologi- cal innovation in our industry, but the rewards are equally high. As a result of the high cost of build- ing new technol- ogy, some firms have partnered with hedge funds, private equity investors, and in- stitutional investors in order to secure financing. While this has allowed some companies to acquire the funds they need to develop, it has also complicated the develop- ment process. Developers must secure the required financing for new software development, but it must be acquired in a manner that will not compromise their timelines or project man- agement process. This can be challenging for firms that don't have access to a ready source of accessible capital. The other challenge that these firms face is trying to develop new software built on top of older architectures. Modern software re- quires a modern process flow, and that can't be constructed over an archaic process. Even new functionality that excites lenders will fail to give them the efficiency lift they expect if it is not well architected. To bring real innovation to market requires a commitment to do what others fear to do or lack the wherewithal to accomplish. Those innovators that are up to the challenge and deliver the technology have the opportunity to bring real change to the overall mortgage lending experience. Bringing Innovation to the Mortgage Industry There are three prerequisites that are required in order to bring real innovation to the mortgage technology business. These are: • effective risk management • sufficient financial capacity • a commitment to modern software devel- opment methods and architectures When combined with the right manage- ment team and vision, these elements can empower a company to develop the kinds of innovative loan origination technology that today's lenders need to increase lending efficiencies, lower overall costs, and redefine the customer experience. In fact, this is exactly what we are seeing now in the market. Recently, the introduc- tion of a new workplan automation pack- age within the Origence Mortgage Loan Origination System has made available a range of innovative new tools for lenders, including automated conditioning, automated third-party order outs, dynamic tasking, and automated loan file setup. This modular ap- proach to lending allows the LOS to provide automation lenders need. New innovations can allow mortgage lend- ers to break out of the tech bubble they've been living in for the past decade and give them the tools they need to build stronger businesses at the same time they satisfy their members and customers and beat back fintech competitors. ANDREW WEISS VP of Platform Strategy for Origence, has more than 30 years' experience in mortgage and consumer lending business. It's easy to imagine how more flexible technologies will give lenders the ability to better adapt to a changing market and the ever-increasing costs it seems to bring with it. Lenders are ready for that innovation now. Anywhere. Anytime. MReport Digital Bringing Today's Lending Headlines into Focus, MReport Digital Puts Mortgage Banking News at Your Fingertips Experts you trust. People you know. News you want. MReport is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MReport Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MReport believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? Subscribe to MReport and MReport Digital now! Call 800.856.8060 or connect with us online at to take advantage of our special introductory offer!

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