TheMReport — News and strategies for the evolving mortgage marketplace.
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10 | Th e M Rep o RT take 5 M // What does it take for a service provider like LenderLive to stay ahead of the curve in a constantly shifting industry? SeehauSen // Staying ahead of the curve, as you put it, is all about being nimble and focused on what your clients need now and what they'll need next, even if they don't know it yet. This requires experienced managers who understand our clients' goals and pain points, as well as the drivers and economics of their businesses. Since LenderLive serves six business segments within the mortgage industry, we are con- stantly adding to and upgrading the executive teams that run our key businesses. For example, we recently hired Mark Hughes, a seasoned due diligence execu- tive, to head up our new due diligence business. In addition to talent, you also need the financial wherewithal to continually invest in technol- ogy, compliance, and product development. M // How has the direction of lending and servicing technology changed over the last decade? SeehauSen // Ten years ago, lenders and servicers were focused on capturing as much market share as possible from an inflated market. Capital and resources were diverted to increasing capac- ity to capitalize on the increased demand. The mortgage crisis, and the deluge of regulation that fol- lowed it, forced the need for rapid technology changes. Both lenders and servicers must operate in a zero-tolerance environment where the smallest mistake can result in a buy-back, a lawsuit, or a CFPB action. Clients have come to real- ize that technology is essential in assuring compliance and docu- menting decisions and interactions with borrowers, intermediaries and, third-party vendors. Today, as the cost to produce a loan has risen several-fold, lend- ers and servicers are looking for technology partners to provide innovation to drive productivity, lower costs, increase scale through automation, and improve quality. The most forward-looking organizations are also beginning to use predictive analytics and big data to identify risks and opportunities. M // LenderLive works with some of the industry's biggest lenders, as well as smaller community institutions. How do their needs differ, and how do you respond? SeehauSen // All lenders face some of the same challenges. Whether you're large or small, you are dealing with the reset of the mortgage market from a refinance to a purchase environ- ment, as well as the need for compliance and, of course, the age-old challenge of cyclicality. Also, the best lenders, wheth- er large or small, are worried about the experience that will be delivered to their customers. This, of course, has implications for all of LenderLive's businesses. In our fulfillment business, for example, we have to demon- strate that we can deliver better service at a better price than our clients can provide internally. This is important whether you're talking to a giant credit card company, a bank, a brokerage house, or a small credit union. Having said that, smaller banks and credit unions do have different needs. Take correspon- dent lending, for example. These smaller clients realize that who they sell their loans to can have a significant impact on the client relationships they have built. M // What do you foresee as the next major movement in mortgage technology solutions? SeehauSen // Probably the next big breakthrough will be using technology and analytics to identify hidden risks in both origination and servicing. Let me give you two examples of just two of the initiatives that we're working on now. Our GuardianDocs business is rolling out what we call FACTCheck, a new solution that helps lenders calculate and validate the income used in decisioning the loan. FACTCheck compares all of the sources of borrower information Leading the Charge In an age of increasingly stringent compliance standards, it's important for industry leaders to stay ahead of the curve in terms of innovation in the hous- ing sector. Rick Seehausen, founder and Ceo of LenderLive, takes a minute to discuss what's on the horizon for the residential space. "The most forward-looking organizations are also beginning to use predictive analytics and big data to identify risks and opportunities."