NMP - October 2016 - 66

Imminent Disruption: The Upcoming Transformations of Mortgage Banking By Bill Dallas he old way of doing things just doesn't cut it in the mortgage industry anymore. Lenders need a streamlined process and adaptive strategies to stay relevant with this new generation of borrowers. As change occurs, it's important for companies to observe the transformation and adjust through advanced business models, new technology and improved communication. Innovation is the path to the future of mortgage banking, yet so many companies still rely on antiquated systems and practices that are decades old. The combination of dated workflows and new T regulations have increased the amount of time it takes to originate a mortgage. Consequently, the net cost of origination for residential loans has risen to an all-time high of $7,7473, with no end in sight, according to a survey by the Mortgage Bankers Association (MBA). It's time to evolve to a better system of mortgage banking. However, changing the mortgage process is not an easy task, and many top players may be forced to reinvent the way they originate loans altogether. The current methods exist on a foundation of deep-rooted practices and out-ofdate technology. Companies like Quicken Loans are addressing oneoff pain points in the process, such OCTOBER 2016 n National Mortgage Professional Magazine n NationalMortgageProfessional.com 66 Helping Mortgage Associations Grow From affordable association management services to creating vibrant and profitable conferences, Agility Resources Group can help your mortgage association achieve a stronger bottom line. Ask us about our creative approach to partnering with you. We'll bring the help you need to achieve the results you depend on. Conference Producers Association Managers Contact Vincent M. Valvo, CEO 860.922.3441 or info@AgilityResourcesGroup.com www.AgilityResourcesGroup.com as the application, but that's only the tip of the iceberg. We need to look at all of the struggles from the initiation of a loan to close and overhaul the entire process. Enhancements in the workflow are going to be the real catalyst of change and can save lenders and consumers billions of dollars over time. Currently, the mortgage process is stressful for everyone involved due to lack of efficiency. For many, getting a mortgage seems like a daunting task filled with headaches and sleepless nights. Technology and innovation are the remedies that will satisfy customer expectations and improve our ability to complete more loans in less time. The customer is number one The future of mortgage banking will be led by those who put customer satisfaction first. A recent study by J.D. Power & Associates showed "When mortgage servicers invest in the client's experience, they not only recapture that investment but also increase profits and raise customer satisfaction." That means lenders have to meet customer expectations of a quick, accessible, and transparent mortgage process. The value of social media is a perfect example of how valuable a single person can be online and having a bad review of a service and either make it or break it. Paper-based business models are out of date and frustrating, especially when nearly every other industry has upgraded to provide electronic alternatives for years. The way mortgages are delivered is evolving to accommodate this expectation and doing so reveals the opportunity to expedite the entire process. One way mortgages will grow is through the elimination of assembly-line strategies. Cloud vs. assembly-line It takes an army to complete the mortgage process, and the potential for regulatory change and security breaches along the way is just part of the reason a cloudbased platform is ideal for today's day and age. Finding out where a mortgage lies without a cloud centered platform is like a game of telephone, being sent from one person to another. Security is a major concern when handling important documents/information and the cloud provides a location to store those valuable resources without the need to keep hardware and software on site. Keeping pace with today's regulatory changes Over the last decade, the number of regulations for mortgage bankers has increased significantly. This plays a large role in why it takes longer than ever to originate a loan. The increased regulations make it harder to maneuver through the red tape and still ensure accuracy and efficiency. As a result, many companies are looking into automation solutions that can check through regulations and confirm compliance. The ability to auto-fill information that has been provided by the borrower can shave off days from the end-to-end process. Additionally, having automation in place lowers the chance of human error. The opportunity for automation is yet another reason why the industry is moving toward a more digital workflow and is critical to streamlining the overall process. However, digitizing everything requires quite a bit of restructuring to be effective. Remaining ahead of the technology curve will be difficult for many larger establishments unless they integrate with trusted third-party providers or completely overhaul the way they have originated loans. Mobile and paperless technologies Paperless technologies are the backbone of next-gen systems. Many of the necessary improvements stem from a datadriven strategy that requires digital implementation. This application of technology for mortgages provides an adaptable foundation to build upon as the industry continues to change. Slowly but surely, mobile has become a significant player in digital industries and will continue to grow as consumers become more comfortable using mobile devices for banking, payments and other sensitive financial http://www.NationalMortgageProfessional.com http://www.AgilityResourcesGroup.com

Table of Contents for the Digital Edition of NMP - October 2016

Table of Contents
NMP - October 2016 - Cover1
NMP - October 2016 - Cover2
NMP - October 2016 - 1
NMP - October 2016 - Table of Contents
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