Eye on the prize: Technology Shopping Guide for March Technology Expos
Feb 05, 2019
The last few years have seen the emergence of dozens of new digital mortgage technologies, each promising to revolutionize some aspect of loan origination. Between the Ellie Mae Experience and the MBA’s Technology Solutions Conference, lenders will face a dizzying array of these solutions in March.
Because I’m both a former mortgage banker and the founder of a mortgage technology company, my friends in the industry often ask me how to pick and choose among all the solution. Nobody wants to be left behind the technological curve, but lenders need help separating the wheat from the chaff. Here are the top three tips I give friends who are evaluating mortgage technology:
Turn a blind eye to “shiny objects.”
A modern consumer experience is the easiest part of the tech stack. Don’t get me wrong; empowering the consumer is absolutely necessary. It’s just not sufficient. If point-of-sale solutions are on your shopping list, look for technology that goes deeper than the application to actually anticipate the downstream effects of consumer actions and adjust back-office workflows accordingly.
Cost cutting is non-negotiable. Demand to see the evidence.
Volumes are down, interest rates are up, and margins are thinner than ever. In this market, it’s more important than ever that your investment in technology be more than just an expense; it should be an opportunity to increase efficiency and grow revenue. Insist on solutions that demonstrate actual time or cost savings, not just vague promises of better efficiency.
Prioritize the originator experience.
Too many lenders are drowning in a sea of disconnected tools, not all of which are delivering on their promised value. When adoption lags, loan officers usually get the blame (“these guys refuse to adapt!”), but that kind of finger-pointing is wrong-headed. There are really only two reasons your technology assets are collecting dust: either they don’t speak to what originators really need, or they’re too cumbersome to use. As you evaluate mortgage technologies, test drive the full user experience to be sure technology makes life easier, not harder, for originators. No one likes toggling between a bunch of disconnected tools, and they shouldn’t have to page through steps that don’t apply to the loan at hand.
I hope to see you out there on the floor at Ellie Mae Experience or MBA Tech. And if you’re serious about bringing your company into the digital mortgage age, I encourage you to click the button below to schedule a time to visit the Cloudvirga booth. See a demo of our digital mortgage technology, which radically re-imagines the mortgage origination process to help lenders rein in out-of-control production costs. You’ll see for yourself the difference between Cloudvirga and other solutions that merely scratch the surface.