The mortgage industry has a bittersweet relationship with the development of technology; it’s bitter in that no one wants to have to learn an entire new way to do something, and sweet in that if it’s done right, it greatly eases and streamlines the process, saving a vast amount of time. In a sector as traditional and old-school as the mortgage industry, it seems like the last of our futile resistance is being ripped away by necessity.
National Mortgage News (NMN) ran an article this week saying that the cost to originate a home loan is skyrocketing as lenders try to comply with stricter rules. The options before them are presented as bleak: invest in technology to automate the loan process, or face extinction.
As anyone who’s read this blog in the past has seen, legislative and industry standards have seen a record amount of evolution since the housing bubble burst. Governmental agencies such as the CFPB, HUD and FHA have all been cranking out new compliance procedures and requirements to meet newer legislation. These efforts have frequently taken the form of a seemingly never-ending volley of verbose, dry and often times confusing documents called everything from compliance guides to supervisory highlights.
It would take a team of lawyers and a fleet of quality control agents to fully implement the frequently divergent expectations of all of these agencies in a flawless manner. The same NMN article accurately states that all of this requires more time being put into each loan, which drives up cost, and which is perhaps most efficiently mitigated by the development of new technology. This can be an especially daunting yet necessary task for smaller lenders who may not have the manpower to see to every detail.
At Landmark, we know that technology is the key to the future of business in any sector, which is why we’ve poured so much time and effort into pioneering new proprietary software for ourselves and for our appraisers, streamlining the appraisal process and granting quality control and access to our appraisers from the field through the use of mobile technology. The mortgage process takes long enough and we aim to keep appraisal time minimal, because we know how much else there is to do for each loan.
With continued evolution in the realm of compliance, we expect to see the rise of newer and more thorough compliance software so that leaders within our industry can spend more time generating new business and growing our sector of the economy and less time needing to worry about compliance. You can expect to see us continue to be at the forefront of appraisal technology, and we’re looking forward to paving the way.