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We’re halfway through our Friction Free Fridays in February listening event where a new RadioLogics podcast is launched at the end of each week. Led by LoanLogics’ Chief Product Officer, the topic being discussed among our three distinguished panelists from United Wholesale Mortgage, Mr. Cooper and Marlin Mortgage Capital centers around removing the friction in B2B transactions.
One of the first questions this group tackles in Part 1 of “Friction Free B2B Mortgage Commerce” is What are the causes and sources of friction in today’s B2B transactional processes?
The answers our panelists shared revealed these common themes:
- Islands of technology
- Disparate Processes and lack of data standards
- Overall transactional complexity between buyers and sellers
All of this creates an environment that can be ladened with friction and aggravated further by warehousing costs, interest rate risks and customer disatisfaction….so the stakes are high.
Below are a few excerpts shared by our panelists on this question topic:
“Disparate systems across multiple vendors destroy the efficiency B2B channels should have. Brokers and loan officers often start out in a LOS then navigate between two or three other systems after that to gather borrower/lender information. That is the number one thing for us that needs fixed.” – Jason Bressler, Chief Technology Officer, United Wholesale Mortgage.
“As we look forward, one thing we can work on as an industry is data and document standardization. Each investor has their own set of requirements, and correspondent originators all employ different processes and systems for loan delivery. Conformity, to the best of our ability, driven by additional standards like MISMO and data controls, is key as we strive together for frictionless correspondent transactions.” – Bryan Budd, SVP, Operations & Co-Issue, Mr. Cooper.
“To start, there is a lack of ecosystem to facilitate a standard exchange of information between buyers and sellers. While a large portion of the MSR market is on a standard servicing system, there is little to no consistency with how data is collected, where it resides, how images and documents are retained or how all this information is output for exchange.” – Andrew T. Weber, Founder & President, Marlin Mortgage Capital
As a technology provider, LoanLogics sees friction relievers as being the use of data standards across the industry. Technologies that take advantage of the cloud and cloud-native applications to drive more and more software development flexibility are also becoming increasingly critical. The end goal of friction free commerce will be supported by transactional platforms that alleviate the heavy lifting on both sides of the transaction and ultimately advanced blockchain technologies that will enable the immutable loan file that can be traded with safety and soundness.
LoanLogics is committed to even more extensive use of data standards across our platforms and has direct experience with cloud-native software development to drive more scalability, high availability, security and performance in B2B mortgage commerce.
If you’re a participant in the secondary market or are just interested in the technology and tools primed to transform the mortgage B2B industry, subscribe now to this podcast series. Get instant access to our first four audio releases with two more to come.
