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Navigating 2022 mortgage trends with the right balance of technology is critical for success. In my last post on August 11th, I recapped and expanded my comments on several questions originally posed by MReport on that very timely topic, in the July feature article “Mortgage Tech Update, Part 1 and Part 2.”
The questions, “What can the industry expect next in terms of digital and AI processes to move into the future ?” and “What do you feel is your greatest accomplishment in the mortgage tech space?” were originally included in the article but not addressed to me specifically.
I love both questions because they hit right at the core of the evolution of what’s been going on with LoanLogics in the past 12-18 months. This blog forum provides the perfect channel to share my comments on these important areas.
It has already been three years since LoanLogics released its white paper, “Big” AI Driven by Today’s Machine Learning. In the paper, we discussed in great detail how AI, and machine learning specifically, can help lenders reduce and even eliminate some manual processes while creating data purity and improving the borrower experience.
Because of this smart doc processing automation, data is more accurate than ever. I firmly believe that an acceleration of AI-enabled processes will inevitably use this data for downstream benefits, across a variety of application use cases. With this, the industry will also face increasing pressure from regulators to demonstrate how AI results were fairly reasoned and/or achieved. It is my view that being able to trace a complete 360-degree view of the sources of input data and an audit trail for the validation of loan file data accuracy will help explain a portion of the process to regulators.
Another critical aspect will be more holistically connecting the technologies that capture, validate and use data. While enabling the accessibility of information through API-enabled workflow is just getting started, new doors to seamless interoperability and pushing loan file data where it needs instantaneously are opening every day. As an example, LoanLogics doc processing technology, IDEA® OnDemand, has APIs that can be leveraged across origination workflows by industry POS, LOS, and other 3rd party industry vendors, making the consumption of the data seamless.
LoanLogics’ demonstrated leadership in digital and AI processes is also related to how I would answer the second question, “what is our greatest accomplishment in the mortgage tech space.” That leadership along with our strategic vision and product roadmap is what captured the attention of Sun Capital who acquired LoanLogics in 2021. Our partnership with Sun is at the top of the list for our greatest accomplishments.
Senior leadership long had a goal of continuing to enhance our AI/machine learning and rules-driven technology product portfolio in support of the digital transformation of the mortgage industry. Over the years and prior to being acquired by Sun Capital we were looking for a like-minded partner to help us with not only that technology objective but our vision for where we wanted to take the company. Immediately upon meeting Sun Capital, we saw that they were also highly focused on technology, as a growth-focused private equity firm with an enviable, process-driven track record. Through their own due diligence, they understood how technology is transforming the mortgage industry and how they could accelerate our growth and our role in the transformation.
Late last year we began part of that growth with the acquisition of LoanBeam, the market leader in digital, automated qualified income calculation for mortgage underwriting. We’ve also been developing business relationships with other mortgage vendors who want to expand the capabilities of their products and services with our automated solutions. Both have and will help expand LoanLogics role in the industry’s digital transformation.
This year has certainly given our industry a new set of unique challenges, compared to the prior two. Senior mortgage executives (39%) recently surveyed by Fannie Mae®, ranked cost-cutting as their main strategy for addressing current market conditions. Talent management and streamlining business processes were positioned next.
Logically speaking, adding technology automation is perhaps in the critical path of tackling all three goals simultaneously. It is our vision to continue to innovate, reach more industry participants to affect digital transformation, and help our clients achieve their goals and navigate 2022 mortgage trends and beyond.
