The mortgage origination business will see a growth in the adoption of the Keiretsu model of doing business by leveraging vendor relationships on a single cloud technology platform, declared executives at Dorado Corp.
The San Mateo, Calif.-based mortgage technology provider made a list of the trends it expects to see in the business this year.
Dorado believes technology and service companies will work together informally to speed deployment of new lending technology, consolidating their individual solutions onto a single cloud computing platform.
Among its other predictions, compliance will remain a top issue, with a growing reliance on third party data and analytics.
The top 100 lenders will favor single tenant or private clouds ahead of multi-tenant solutions because of things like control, processing speed, security, functional scalability and customization.
Loan level data quality will evolve from an investor requirement to a market advantage, as large volume lenders looking to maintain margins and grow their business adopt zero tolerance measures.
The cost to originate will rise, no matter how efficient the lender's loan production process is.
Originators will need to accommodate such technologies as the Apple iPad or a similar device that uses the Android operating system.
Lower margin mortgage products will continue to predominate as loan origination volume declines. This will lead lenders to reexamine their third party service costs, Dorado said.
Government oversight of the lending business will remain active. In the same vein, Dorado believes that government will continue to put heavy pressure on mortgage brokers and the business will move gradually from a retail/broker/correspondent model to a retail/correspondent model where all parties will have some financial responsibility for the loan.
The drive for quality will lead the servicing side to work closer with the origination side to ensure tracking of data to make it easier to process loan modifications and identify changes in the borrower's circumstances.
