Mortgage Technology Pivots From Compliance to the Customer

The mortgage industry’s attention continues to shift toward technology that engages the customer, after many years of near-exclusive focus on compliance solutions. Industry players are focusing on customer experience and presenting new ideas on elements of design and delivery that consider customer expectations first.

Industry participants are rethinking the traditional loan origination process, creating self-serve opportunities and evaluating ways to leverage data in lieu of requesting information from the customer. The use of mobile applications, particularly for pre-qualification and application, is becoming more prevalent as a means for engaging millennials. Video is another innovative means for communicating with customers, offering education that can be personalized and accessed as needed. As production volatility continues, these emerging technologies will go a long way in helping lenders improve efficiency, increase market share and secure a competitive edge in the industry.

Despite a clear change in focus, compliance-oriented technology isn’t going away. Technology solutions continue to be a vital component in administering regulations. A sound compliance approach will need to underpin consumer engagement efforts. Industry insight and education are still necessary to assist lenders in continuing to navigate compliance, regulation, data management and information security.

Notwithstanding reoccurring technology themes, it is apparent that the mortgage industry is rapidly accepting business transformation and innovation through technology. Key industry players are introducing customer-centric solutions, from mobile applications to electronic signatures and delivery of documents, as well as video communications. It looks like we may be fast approaching the tipping point that the industry has long awaited…

Bringing on new technology without disrupting key infrastructure, including loan origination systems, servicing systems and other vendor and proprietary systems, can be a major undertaking. There is an art to handling the massive amounts of decisioning to manage customer experience throughout the process.

Leveraging the data received through mobile applications is a small window of opportunity at this juncture. Self-serve applications, including live chat, need continued support from the industry to evolve. One of the most important elements of immediate success, however, will be the ability to move less tech-savvy customers and those that don’t readily fall into the Qualified Mortgage (QM) box, through the mortgage process.

As the industry begins to embrace these customers, lenders need the flexibility and confidence to know that all the right questions have been asked and decisions made. This is an opening to stay ahead of the competition by embracing innovative technology, such as Sapiens DECISION.

Leverage the hard work that’s been focused on compliance and start to modernize your entire infrastructure, while bringing black and white clarity to the processes that are managed across the organization.

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Janet Eakes

Janet Eakes

Janet Eakes leads Sapiens DECISION mortgage banking strategy and focus. She has spent the last 30+ years in the mortgage industry, formerly as the Chief Operating Officer of the Municipal Securities Rulemaking Board (MSRB); and Senior Vice President for mortgage operations at Freddie Mac.

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