Why 2017 Will Be a Market Defining Year for Digital Mortgage

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From lenders to the settlement agents, warehouse lenders, investors, servicers and custodians, it’s no secret that the mortgage process involves a variety of parties and steps that can make the entire progression feel like a juggling act. Fortunately, technology is changing everything.

As I’ve mentioned previously, fully digital mortgages are supported by the courts and by industry heavyweights such as Fannie Mae, and are gaining momentum with others. Building pressure from consumers for a better closing experience has set the stage for electronic mortgage to become the industry standard. Fannie Mae also outlines the lender benefits for eClosings, which include:

  • Consistency and accuracy in the closing process (fewer, if any, post-closing conditions)
  • Potential loss of notes eliminated, resulting in better collateral control
  • Reduced carbon and ecological footprint
  • Reduced courier and shipping fees
  • Quicker warehouse inventory turn times
  • Elimination of inefficient workflows
  • Increased data quality
  • Improved risk management
  • Faster liquidity in the secondary market
  • Operational efficiencies (cost savings)

In addition, National Mortgage News notes that as a result of the anticipated decline in volume, mortgage lenders’ interest in technology has been focused largely on cost-saving measures. Among its many benefits, eMortgage positively impacts the borrower experience and delivers incredible returns to both lenders and downstream partners in the secondary market.

Digital Discussions at MBA Tech

Last week, eOriginal blew into the Windy City to meet with mortgage industry players and technology aficionados at the Mortgage Bankers Association’s (MBA) annual technology conference. At the event, we also presented a 15-minute demonstration of our Digital Mortgage Platform on the side stage and attendees were extremely receptive. With mounting pressure from borrowers for a better mortgage experience, ever-increasing scrutiny on compliance by regulators and the opportunity for a substantial return on investment, the conversation at MBA Tech confirmed what we have been saying all along: 2017 will be pivotal year for digital mortgage.

Take the Technology Leap

There’s no question that an end-to-end digital mortgage solution reduces the number of balls in the air to make the entire process more manageable. We are encouraged that the mortgage industry expects to invest in technology – especially since ours is proven among other asset classes, which we were told is a huge differentiator. Despite the challenges presented by mortgage, the market is clearly ready for a digital transition that offers consumers a more streamlined closing experience, and that will improve the entire process from start to finish.

Next Stop, New York!

Our digital mortgage team will be in the Big Apple from April 30 – May 3 at MBA’s National Secondary Market Conference & Expo. If you will be in New York, please let us know!