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How Markets Emerge in the Mortgage Technology

By Brad Debroux, CIO, Alterra Home Loans

How has the mortgage technology changed the way you do your job? As the market continues to evolve, what are the challenges that the company face in the mortgage industry today?

Advancement in digital technology has been driving economic growth in every industry sector. Similarly, technology is revolutionizing the mortgage industry too. Though the professionals are looking to simplifying the processes, the sector goes through a lot of complications. The biggest challenge our company is facing now is to manage different tools and technologies that the sales group require to prosper in the business world. For instance, many mortgage bankers want their Customer Relationship Management (CRM) software; and require new technology that integrates with their loan origination system. So the whole challenge includes providing a single system and develops processes that benefit not only individual branches or users but also the entire group. So it becomes a huge task, like in the FinTech industry, as these entire market participants try to reach out to the sales group with an aim to increase their benefits and make technical decisions for solutions.

"Compared to taking a loan on an online app, this platform automates the process, one process at a time and solves the issue of loan for an organization"

What according to you should your industry peers do to overcome the challenges and devise solutions accordingly?

One of the foremost criteria of our company is to understand the requirement of everyone in the organization, from a different perspective, including sales, marketing, compliance, operations, technology, and more. It is a very important factor for the business to grow. With regard to our company, I try to communicate with our sales group and engage them in the whole process of decision-making. As an example, if a company requires four to five CRMs but narrows it down to two or three, the most beneficial part for both the company and its employees would be to make it understand to the groups and the stakeholders alike. That being the case, it is the sole responsibility of the organization to reach out to its end-users and understand how they smartly utilize technologies. Above all, it is about how an enterprise communicates across and provides solutions with a different perspective.

What are the new trends in the mortgage landscape, and what are the impacts on the organizations associated with it?

It is interesting to note that many big ventures invest in technologies that have solutions to every issue. Eventually, lenders find out that problems replicate because such technologies create complexities and introduce more opportunity to risks and errors. So, considering the fact that when it comes to loan files, it is all about data and documentation which comes from different portals and mechanisms. So, over-dependency on technologies makes the situation worse.

Another major trend involves lenders and their problems. We analyze each issue in detail and train teams to become more efficient. However, training two or three teams made it difficult, so our company started developing platforms that not only assist the customers but also make the sales force more productive. Compared to taking a loan on an online app, this platform automates the process, one process at a time and solves the issue of loan for an organization. We also focus on managing the credit report, get it back into Loan Origination Solutions (LOS), and obtain all the authorizations to get the processes done.

The next trend is where we see lenders shifting from one platform to another. With regard to this trend, our firm analyzes and understands the issues, and seeks solutions in terms of administrative support training, ongoing maintenance, and more.

In these years, the mortgage industry has made significant advances in the industry. According to you, what is next for the mortgage landscape?

Currently, we are in a tech scenario where automation and robotics provide solutions in different processes. With the same idea, today, our firm focuses on increasing volume, doing more transactions and continues the process with the same kind of people. The technique comes as an advantage for the customers, as we provide them with leading technologies which reduce the amount of repetitive process of the transaction. Since we automate the process for them, it enables them to move on to the next transaction faster.

Our firm focuses on engineered-manufactured products and follows a linear technique where the mortgage process has a beginning, then the loan is applied, and then towards the end, the loan gets funded, sold and eventually transferred. There might be thousands of transactions that approach our LOS; currently, I am working on ten loans. So, our company gives priority to the individual processes that focus on the technique from beginning to the end. At present, we bring in automation and robotics for simple procedures such as to order a certificate or to attain 40-50 transactions at a time.

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