Motor City revved up a different type of engine last week as lenders and vendors roared into Detroit to debate, explore, and test out the latest innovations driving the mortgage industry at the 2018 Mortgage Bankers Association’s Technology Solutions Conference and Expo. Across the many sessions and meetings, three major themes dominated the show: customer experience, digital mortgage, and data security
Any lender seeking a new technology partner has to wade through a river of nearly useless buzzwords. The cloud. AI. eMortgage. Blockchain. End-to-End.
They all have strong business cases, but too many companies just throw the words out there hoping to get their voice heard amongst companies seeking the newest offerings. Without substance, though, these bits of jargon mean nothing.
Part Two of a Series on HELOC Lending
As we explored in the previous blog of the series, tappable equity among homeowners is currently at an all-time high. In fact, according to TransUnion, nearly 65 percent of current homeowners are eligible for a home equity line of credit (HELOC), presenting a lucrative business opportunity for lenders looking to expand their service offerings.
Last month, leading female mortgage professionals from the country’s top mortgage lenders, GSEs, as well as technology and service providers participated in the inaugural NEXTTM Mortgage Technology Conference for Women in Dallas. NEXT challenges traditional mortgage industry conferences by being the only tech-focused event for women executives who are serious about driving optimal business outcomes.
Historically, financial services organizations tend to invest in new technologies at a more conservative rate than firms in other industries. There are good reasons for that, because mortgage banking, like all financial services, has risk mitigation at its core. Adopting every new technology that comes down the pike is not a good way to manage risk in the enterprise. Depending on the size, infrastructure and resources of a particular lender, the decision to adopt new technology solutions can vary and impact the overall perception of financial services industry technology advancement.
The rise of mobile was one of the hottest trends in 2017 and it has carried over into every transaction the consumer engages in. With mobile now making up two-thirds of a consumer’s digital media time, the chances of interacting with a borrower through their mobile device is much more likely than through their desktop computer.
Recent research from the Consumer Financial Protection Bureau (CFPB) shows that many borrowers regard closing on a home as a stressful and intimidating experience.
Because mortgage transactions have significantly larger loan balances than other types of transactions, they are very attractive to fraudsters who are seeking an illicit payday. There are many schemes fraudsters use to steal money from mortgage lenders and their investors. These range from valuation-based schemes, where criminals attempt to mislead the institution as to the exact value of the property, to setting up straw borrowers with fake credit reports.
The industry has been consistently moving closer to digital becoming the standard format for originating, closing and selling mortgages. However, the actual eClose has been one aspect of the digital mortgage transaction that has complicated the progress towards paperless becoming the industry norm. But integrated eClosing solutions are now becoming a reality to benefit the borrower, lender, title and settlement.
