Thinking when it comes to the basics of mortgage technology on the part of top lending executives active in the industry today is changing. While buzzwords still litter the space and the latest must-have software feature remains a moving target, lenders are thinking differently about technology and it's about time, too.
For example, A.W. Pickel III, president at LeaderOne Financial, a midtier lender specializing in conventional and government loans, wrote in an article published in the July issue of Mortgage Technology magazine that the benefit of embracing new technology goes beyond simple return on investment. Specifically, Mr. Pickel said, "The fact is that in today's world, technology isn't just a vehicle for increasing convenience and speed, it's also a necessity. In order to move forward in business, companies need to be technologically sound."
So why have lenders been so resistant to implementing new technologies?
"We dislike change because the associated apprehension and discomfort is caused by fear of the unknown or lack of confidence," writes Steve Probst in the upcoming August/September issue of Mortgage Technology magazine. Mr. Probst is responsible for overseeing and directing all sales efforts for Fairway Independent Mortgage Corp., a full-service mortgage banker.
"We have all heard our employees say, 'That's not how we do it here,' or 'Why do we need to do this differently, it has always worked perfectly this way.' Opportunity, growth, and improvement come to those who venture outside their comfort zone and embrace change. Because of technology, change occurs rapidly. The most successful people and organizations recognize change quickly, embrace and adapt to the changes, and implement it into their daily routine," he concluded.
Further, in an interview with Brian Boike, first VP and process improvement manager at FlagStar, published in the June issue of Mortgage Technology magazine, Mr. Boike talked about endorsing Category One SMART Docs over simple PDF because of the added value that SMART Docs bring to the lending institution. "We’ll take the data out of a SMART Doc and use it as a way to validate the note and the e-signature, which you can’t do with a PDF... It’s more established to go with Category One and there are more long-term benefits."
What does this mean? It means certain lenders are thinking strategically about technology. It's no longer just a numbers game. Surely lenders are still looking for ROI, but more and more they are looking at the big picture as well.
In fact, as evidenced by Mr. Boike's comments, some are even willing to embrace more complex technologies like SMART Docs over simple PDF, a veritable household name, because of the more viable, long-term benefits SMART Docs offers lending institutions focused on keeping compliant at a time when state and federal government institutions seem to want to dump more legislation on this industry by the second.
Does this mean we'll see lenders adopting complete e-mortgages and e-closings tomorrow? Certainly not. But in fact there are several lenders actively moving in that direction. Every day I'm becoming more and more confident that the mortgage industry is getting there. It's actually a good bet that e-mortgages will be mainstream sometime before my four-year-old goes to college. I'm optimistic anyway. Are you?
PLEASE LEAVE YOUR COMMENTS BELOW. JOIN THE CONVERSATION. ALSO, BE SURE TO VISIT
