Technology

"Data integrate to me is the biggest key. We're getting there, but the process is still very fragmented. The integrate is mostly haphazard, except for the very big companies that have huge resources to invest in legacy systems. The smaller and midsize companies still suffer tremendously. How we're going to get there is a question of having the foresight, understanding and resources to do it right. Too often, these projects get stopped and started, without proper planning in the first place. We need a plan that makes sense, where there's a budget, timeline, and specific goals and objectives."
— Doc Baldwin, Richey May Baldwin

"When you're automating existing mortgage processes, one of the most challenging aspects is integration with the current regulatory environment. The mortgage industry is so highly regulated that it's difficult to automate mortgage processes — you have to fuse operations, legal and technology to develop a workable product.

The industry has done a great job of automating routine processes, and now we're taking on more complicated processes. But now we have the data to begin analyzing some parts of the process that have not been transparent. We're able to capture data from closing. We're able to capture data from the real estate contract. Data are being standardized by great industry efforts like MISMO and we're more able to automate our processes and deliver products in a compliant, reliable way."
— Chris Christensen, PeirsonPatterson, LLP

"Increasingly, software solutions for small to mid-size lenders are getting just as effective as some of the largest solutions — not always with all the bells and whistles, but they're certainly adequate enough to help lenders operate efficiently. In addition to technology, vendors can bring experience and perspective to offer ideas that the lender may not have thought about and solutions to fix problems."
— Craig Focardi, TowerGroup

"Lenders talk about technology, but when it comes to implementing it, they have enormous difficulties. The intelligent application of technology within the industry is fairly limited. Vendors still try to explain the technology in terms of technology, not in terms of the business impact. They're selling technology based on the fact that it's the latest version of Microsoft.net; it's SOA enabled; it's MISMO enabled. But none of these things mean virtually anything to a mortgage banker who's worried about how to get a customer, take an application, get disclosures out and process and close the loan as effectively as possible."
— Dave Matthews, Federal Home Loan Bank of Chicago

"Lenders need to pay more attention to verify, validate and price correctly. Most are sub-optimizers anyway: they're not looking to maximize their margins; they just ask that technology simplify their operation. Technology also can help them find a valuable segment of the business or a local marketplace. Lenders segment by product, but not necessarily by borrower attitude and behavior. It's a place where there's plenty of room for improvement."
— Jeff Lebowitz, MORTECH-LLC.

"I think we need to show lenders the business reasons for implementing technology. When we just focus on technology, it can be very confusing. The first thing they ask is: "What's my return on investment?" Sometimes it's hard to measure. The reason you're doing it may or may not save money, but what you're really doing is improving your process and making sure you have better loans."
— Roger Gudobba, Wolters Kluwer Financial Services