Top Mortgage Professionals View Automation as One Cure for What Ails the Industry
Margin compression has been at the top of the list of concerns for mortgage origination industry executives for quite some time now. As the regulatory environment has shifted and become more constricting, it now costs more and takes more time to close a loan. Add on top of that increased purchase loan competition, and a curb on refinance loans due to rising interest rates, and now you have a recipe for concern.
In the recentThe State of the Originations Industry report released by Altisource, 78% of the 202 tenured mortgage professionals polled were concerned that loan production costs would continue to increase while volume would go in the opposite direction.
For originators, there’s not much that they can do regarding regulatory changes and interest rates. But they do have some level of influence over aspects of the origination process and associated costs.
Which is why 64% of those surveyed for the report replied that they have implemented automation as a response to the increase in production costs.
The takeaway? Business-as-usual will soon be unsustainable, and unprofitable. Mortgage companies are becoming more lean, agile, and technologically sound in order to survive. Originators facing increased competition are
When it comes to controlling costs, and providing a modern digital lending experience for borrowers (including the “grew-up-with-it” Millennial generation), mortgage automation platforms like Floify are helping to lead the charge on both fronts.
Some might say it’s long overdue, as tech-savvy non-banks have gained considerable market share over the last 5-10 years, but still, others are content to do things the way they’ve always done them. In fact, 13% of those surveyed felt that one of the biggest challenges facing the industry right now is an aging workforce that is resistant to change.
Yet, if there is something to be excited about through all of the
As history has shown time and time again, those who are deliberate and proactive in addressing issues are generally far more successful than those that only react once the building is already on fire.