Completing a thorough review of each loan application is a critical component of a mortgage lifecycle. However, several challenges limit lenders’ ability to perform reviews with the accuracy, efficiency, and impartiality that this task requires, and can also raise loan review unit cost. These challenges can prevent loan originators from taking on additional business and therefore restrict growth. This article lists the specific factors that lead to higher mortgage review costs, and then offers three options for addressing these issues. The High Cost of Regulation Ever since the Dodd-Frank Act came into effect......
Implementing a digital mortgage strategy is a rewarding journey for mid-size lenders. Even without the mega-funds required for a complete and disruption-free rip-and-replace of their legacy LOS, digital adoption is an essential step that will help lenders lower costs and shorten closing cycles. In our experience, two digital models...Continue Reading
Mortgage processing usually takes up to 50% of the total closing cycle time. Furthermore, the quality of processing can have a significant impact on the closing ratios. Not to mention, it forms a major part of the loan production cost. Lenders who are leveraging the right technology and global delivery model...Continue Reading
If you visit the Consumer Financial Protection Bureau (CFPB) website, it is evident that mortgage regulations are amended dozens of times each year. It might be possible for a mortgage lender, servicer, or other service provider to keep track of these regulatory amendments on their own, but this essential task...Continue Reading
Exceeding Borrower Expectations As the landscape of borrowers’ profile changes where millennials are becoming prominent in the home buying process, lenders must differentiate themselves on quality, speed, and innovation to match the expectations of this generation of home buyers. Lenders that fail to do so will be quickly left...Continue Reading
Consumer lending is a highly competitive industry that requires consistently efficient operations to maintain a healthy bottom line. This post describes how lenders can leverage digital technologies to improve their efficiencies and achieve economies of scale. The Digital Borrower Experience In a nutshell, digital technologies improve efficiency by providing...Continue Reading
The mortgage closing cycle involves quite a bit of back-and-forth between the lender, various service providers, and the borrower. Because of the increasing complexity of the loan servicing landscape, title companies sometimes spend as much time waiting for responses from other parties as they do actually processing documents. It’s...Continue Reading
We all know that the mortgage industry is dominated by relatively small technology firms and there is no “Google of Mortgage” today. The traditional LOS developers largely repurpose and reskin their legacy, cash cow applications in an attempt to retain market share and remain compliant. There are some bit...Continue Reading