Mortech Projects Tech Spending Drop

Mortgage technology vendors are in for a rough ride, according to the 2007 Mortech study. Statistics show that lenders increased technology spending by approximately 8% over the past three to five years, said Mortech publisher Jeff Lebowitz. His projections before the credit crisis were that those same lenders would reduce tech spending by 2.0%-2.5% in 2008, but "with the demise and distress of major mortgage technology spenders" Mortech now projects that the decline could be 10% or more. "We have never seen the industry technology budgets being at such risk," said Mr. Lebowitz. "Most mortgage technology suppliers are pretty small -- under $50 million in revenues. Mortgage technology providers will have to be pretty resourceful to weather this storm." The 2007 study, based on a scientific sample of 330 lenders of all sizes, is now in its 20th year.