TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/1491913
16 | M R EP O RT COVER STORY O ne positive byproduct of the pandemic was a boost in the nation's housing market, along with the development of a slew of new digital products and programs in the tech space. As companies piv- oted to navigate the government's actions designed to keep Americans in their homes in a time of dire need, the indus- try's tech providers responded with a new wave of quali- ty-control tools to help navigate regulatory changes and the emerging more-digital landscape. Nationwide, record-low rates were embraced by consum- ers, whether it was for home upgrades, refinances, or the purchase of a second home due to the proliferation of work-from- home opportunities. This influx of consumer demand challenged the industry as it navigated high volumes. But through lessons learned from past market booms, the industry and its technological partners worked together to find the best way forward. Appraisers adopted new meth- ods to conduct their vital role in the homebuying process via curbside valuations and the up- loading of geocoded photos. New methods of communication via Zoom calls and virtual meetings were instituted and have become commonplace in a post-pandemic world. As the era of COVID-19 moves increasingly into the rearview mirror, what becomes of these tech breakthroughs and new ways of conducting business? Will they be cast aside and held in reserve specifically for times of crisis? What techniques learned and developed over the past two- plus years will be carried onward and fostered in today's market- place where mortgage activity has retreated amid recessionary conditions? The Computing Technology Industry Association reports that the nation's tech industry overall employs nearly nine million, a segment that collectively adds an estimated $1.8 trillion to the American economy. At the outset of the pandemic, companies such as Amazon and Facebook more than doubled their workforce, as new demand by a stay-at- home public called for immediate expansion. And while explosive growth in the tech world has been standard in the last decade-plus, the in- dustry has contracted immensely over the past 12 months, as tech job tracker site Layoffs.fyi has reported that more than 200,000 jobs in the tech sector have been lost since the start of 2022. As mass layoffs in the tech space plastered the headlines of late, NPR reports that Facebook parent company Meta, Amazon, Microsoft, and Google have col- lectively eliminated nearly 51,000 jobs in recent weeks. Salesforce recently announced plans to lay off nearly 7,000 of its employees, as Co-CEO Marc Benioff claims the company hired "too many employees" during the pandemic, and in mid-January, Microsoft confirmed that it would lay off approximately 10,000 over the next few months. Intel recently laid off 544 employees, part of the company's "right-sizing" plan laid out in October to cut $3 billion in 2023, and as much as $10 billion in costs by 2025. What does this colossal con- traction mean for the tech space? Has the segment reached a point of no return? Do consumers have all the digital tools needed in place to make it in today's world? Is "enough" enough in terms of the expansion of technology? This month, MReport exam- ines the state of the mortgage tech space, asking if we are any closer to an all-digital process, examining what tools are vital to today's homebuyers; discussing the advances in artificial intelligence (AI) and machine learning that lie on the horizon; and reviewing the measures that have been taken to combat the rash of cybercrimes. Executives from a cross-sec- tion of lenders, service providers, technology and software firms, and others shared their perspec- tive with MReport as they face the market as it currently stands in 2023, and what lies beyond for the tech space. What tech enhancements to the mortgage process do you feel will be necessary to compete in 2023? Frank Danna Co-Founder & CEO of Appraisal Logistic Solutions Inc. One area where lenders will see a marked increase in borrower and agent satisfaction for modernizing will be their appraisal depart- ments. This function takes the longest, is the most invasive for the seller, carries a great deal of risk for the buyer, and is mostly outside of the lender's direct control. Better technology with consumer-facing interaction will improve the customer experience in every respect, and lenders who embrace it and make the right strategic investments in 2023 will win more business. Garth Graham Senior Partner, STRATMOR Group One of the biggest challenges in 2023 will be the top of funnel purchase process. Refinances were mostly about having the capac- ity to handle huge amounts of