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The mortgage industry is adjusting to drastic market changes. Volume declines, macro global trends (i.e. war, supply chain) and the economy (i.e. inflation, rising rates) remain in our purview, adding to the uncertainty across industries.
To realign with current volumes and offset rising costs, many have turned to staff reduction, evidenced by a survey of lenders at a recent STRATMOR workshop. In it, eighty-six percent said to cut costs they are currently reducing staff via direct reductions or attrition.
Those that have been in mortgage long enough though know the resiliency of our industry. The small wins, opportunities, and technology available to button up processes are ever present and point to better days ahead.
The secondary market, mortgage servicing rights acquisition specifically, has been a bright spot for many with portfolio values remaining strong and a flurry of activity consistent.
We’re encouraged by organizations who are committed to breaking the cycle of hire & fire and making existing resources more efficient. Adding technology well positions them for when volumes inevitably head back north.
For those that are hesitant to invest during this uncertain time, here are some considerations to help bridge the gap.
STRATMOR found in its 2021 Technology Insight® Study perceived barriers to tech adoption included:
- the ability to get staff to change behavior/processes,
- system integration requirements
- the complexity of managing multiple new technology
With regard to removing some of these barriers, LoanLogics has direct experience developing best practices for embracing technology, optimizing resources, managing retention and hiring audit staff. We shared these insights in a 2019 blog post, “5 Best Practices for Embracing Technology” that remains relevant in today’s environment.
When it comes to system integrations, as you evaluate technology, consider the level of integration needed. For example, robust compliance engines that are integrated into QC platforms can facilitate the delivery of accurate data for analysis and put results into the auditor’s workflow to complete reviews within one user interface.
For other applications that are generating data, such as in document processing and data extraction, you should understand the degree to which those systems are API-enabled to feed that information to downstream systems and applications.
Another great way to introduce the benefits of technology automation into your operation, is to consider working with a technology-enabled outsourcing provider who can give your resources the benefits of automation and exposure to some of the technology that can create more efficiencies in both their and your workflow.
Try Before You Buy Programs, like the ones LoanLogics has formally set up for our IDEA® OnDemand and LoanHD® HMDA DirectCheck™ solutions is also a great way to get first hand exposure to technology you’re evaluating.
Whichever your preference now is the time to consider improving the balance of human and automated resources across all aspects of the manufacture, sale, and servicing of loan assets.
Contact LoanLogics to explore one or all the above paths to technology adoption today.
