The mortgage lending industry is currently navigating significant challenges regarding technology upgrades, as revealed in a recent report by STRATMOR Group. Key barriers remain in the form of costs, resistance to change, and integration complications that hinder lenders from modernizing their technology stacks.
Despite these obstacles, the report indicates a promising trend towards automation among lenders. According to STRATMOR, nearly 48% of mortgage lenders have embraced robotic process automation (RPA) to enhance operational efficiency in tasks such as ordering appraisals and credit scores. This indicates a shift in focus, as many lenders are actively evaluating their loan origination systems (LOS) for automation capabilities and investing in the development of internal RPA skills.
Artificial intelligence (AI) and machine learning are also being increasingly integrated into the mortgage process, particularly in document management. STRATMOR reports that 38% of lenders are now utilizing AI for crucial tasks like document classification and indexing, marking a transition from earlier uses focused primarily on sales and customer targeting.
Nicole Yung, a senior partner at STRATMOR, emphasized this trend by stating, ‘Mortgage lenders are increasingly investing in automation and AI as foundational technologies to improve efficiency and productivity.’ She noted that overcoming these barriers requires strategic planning, robust vendor relationships, and investments in information technology.
This evolving landscape and its implications for the mortgage industry is extensively detailed in STRATMOR’s recent InFocus article titled ‘Laying the Foundation for a Seamless Digital Mortgage Experience.’ Yung highlighted that, ‘Lenders are strategically prioritizing front-end digital capabilities that directly impact the application process.’ She pointed out that the industry has reached a critical juncture, where technological investments will determine which organizations will flourish in a digitally-driven mortgage market.
