MReport April 2018

TheMReport — News and strategies for the evolving mortgage marketplace.

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14 | TH E M R EP O RT COVER STORY D igitization came late to mortgages, and while technology is increas- ingly playing its part in advancing the efficiencies of an industry that has relied mainly on traditional and slower methods of communication, the speed of adapting to these efficiencies is what matters. According to a CB Insights report, fintech in the mortgage realm is only taking off now. "Originating, processing, and underwriting a home loan with a large bank lender still requires faxes and snail mail and takes almost as long as it did 20 years ago," the report said. Tech companies sat up and took notice of this gap, and the result was mortgage technology companies that specialize in ap - plying digital processes to almost all aspects of the mortgage and servicing industry. From process- ing and workflow, analytics, mar- ketplace lending, and mortgage auction to eMortgages and digital mortgage brokers, tech companies have found a foothold in almost every aspect of lending. Now, as the industry gets more customer focused, lenders are waking up to the advantages of technology that provide increased efficiencies and decreased time in loan processing and servicing for them and the borrower. So what's shifting in the mortgage industry to bring about this technology revolution? Movement in Efficiency and Experience T oday, financial services com- panies are more concerned than ever about the ways tech is enhancing customer service. "I hear the word speed a lot in relation to technology. Fast pro - cesses to reduce time and expense seems to be a constant theme," said Sean Ryan, CEO, Aspen Grove Solutions. "In fact, technol- ogy is helping everyone get closer to the consumer and provide bet- ter experience and service." Increased efficiencies have be- come a key driver in an increasingly competitive lending industry, with enhancing consumer experience be- ing perhaps, the main reason that's driving lenders to innovate. "Technology has helped us in differentiating all our products. It allows us to scale and affords us the opportunity to focus on customer service and experience. It also allows us to offer a better rate than some of our competitors in the market and reduce the op - erating costs." said Scott Goldman, Senior Director, Mortgage Servicing at Ally Bank. "For example, through technology, we can offer our customers a price match guarantee on our origina - tions at no additional costs." "Many of our customers are returning to us for that next purchase or their refinance. So we are establishing a seamless digital experience for them, all the way from application through the closing. Our customers want us to engage with them on mo - bile so that we will have a very heavy emphasis on this aspect of technology as well," said Rocky Stubbs, SVP, Consumer Direct Lending at Flagstar Bank. "Our end goal is to build a technol- ogy ecosystem that empowers the loan officers to provide a personalized experience for our customers and keeps relationship and engagement at the center of that experience." Apart from empowering orga - nizations to make them agile and nimble, technology is also helping lenders to quickly adapt to indus- try changes while maximizing efficiencies and reducing risks, as well as enhancing borrower expe- rience, according to Kamel Boulos, CTO, ClosingCorp. "Technology can enhance the borrower ex- perience by providing a unique journey to support their specific situation. This centralizes the collaboration and creates complete transparency between all par - ties associated with the mortgage transaction including borrowers, real estate agents, lenders, inves- tors and third-party providers," said Boulos. However, it will be impor- tant for the industry to focus on improving the customer experience while following regulatory compli- ance. "In today's industry, we are starting to see mortgage technology solutions shift much more toward improving the client experience as well as educating the borrower. Current innovations are leading to transparency-based, borrower-cen - tric solutions now galvanized by the desire for simplicity, efficiency, A New Terrain: How Technology's Shifting the Industry The buzzwords in the mortgage industry are changing as technology plays an increasingly important role in providing lenders with an edge over the competition. We look at what's changed and how the industry's adapting for a fintech future. By Radhika Ojha

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