A lot is being made of the financial incentives that the Obama Administration is passing on to servicers and borrowers for successfully modifying problem loans. Some have said in the past that if investors that accept e-mortgages had taken these same steps — offer lenders a financial incentive to deliver a full electronic mortgage — lenders would have adopted much faster. I’m not so sure myself. Lenders are slow to adopt anything.
Everybody wants to get paid. Only the super rich can afford to work for free. If you’ve inherited millions, why collect a salary when you can do charity work and give back? No, I’m not related to Mother Teresa, but I do believe in giving back when you can. But I digress.
The saying “Money Makes The World Go Round” is certainly true. Everyone needs and wants money. But in times of tragedy, real crisis, what is money really worth? If we look back to one of the great stories of this year, we have to mention the heroics of Captain Chesley "Sully" Sullenberger of U.S. Airways Flight 1549, who successfully landed his plane in the Hudson River after a flock of birds damaged the plan. Nobody was killed during this incident. Did Captain Sully need to be financially incented to do that landing? No, his life and the lives of everyone on the plane depending on him acting and he did.
Not to be too over dramatic, but lenders face the same situation. They’re hurting. They’re coming under fire from every angle blaming them for the economic crisis. They have to cut costs. They have to be more efficient. Mortgage lenders are in a crisis here. Their life depends on them acting.
The answer to survival in mortgage today is automation. How do you do more with less without automating? How do you cut costs? How do you increase efficiency? How do you become more transparent? Automation, automation, automation, automation. Lenders have to act or they won’t be here tomorrow. It’s not about how much extra they get to do an e-mortgage anymore, it’s about surviving.
So, my question to all who come across this blog and take a second or two to read it over is: Will mortgage lenders act and save themselves and the mortgage industry by automating or not?
