Tech Can Help In Tough Market
As more and more lenders shut their doors and overall volume slips, there is light at the end of the tunnel. Several panelists at the 11th Annual SourceMedia Mortgage Technology Conference here shared concrete strategies that can help lenders in the current down market.
"Now is the time to re-examine your business model," said Chris Jabbal, former chief information officer at Washington Mutual. "From there, lenders have to decide how they can support that business model and apply technology to be more efficient. One big focus in the market today is a shift to automating the backend by doing more concrete disclosures on 100% of loans. It's about making the process more auditable."
In fact, strategies to ensure better risk mitigation were a topic discussed by several speakers.
Right now several lenders are shedding their wholesale channel in favor of retail because the lender has more control over the quality of loan that they do in-house vs. a loan they inherit from a third-party originator.
Despite this development, Greg Smith, vice president and general manager at e-collaboration vendor Xerox Mortgage Services, said, "Wholesale is not dead. It will be reborn. However, in the more near-term lenders will focus on retail and online retail channels. Technology that will allow lenders to better assess risk and increase transparency will be a key component to survival going forward." (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/