Spending on mortgage technology increased 14% in the past year, according to the second annual Mortgage Bankers Association Technology Study.Study participants spent an average of $156 per loan application and $250 per closed loan on origination-related technology costs. In addition, those that serviced loans spent an average of $25 per loan on servicing-related technology costs, the MBA reported. About 75% of 2004 technology spending (operating expense before depreciation, plus capital expenditures) was dedicated to origination functions and 25% to servicing functions. Of 2004 technology spending, 73% was baseline maintenance (required in order to continue conducting business), while the remaining 27% was discretionary (needed to improve functionality and performance). Regulatory and compliance obligations accounted for 9% of technology budgets. Looking ahead, participants expect their technology budgets to increase by 5% over the next year. The participants represented approximately 20% of the U.S. mortgage origination market, according to the MBA. The association can be found online at http://www.mortgagebankers.org.

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