The mortgage industry is waking up to disruptive technology and digital innovation that can transform the industry. These innovations include data initiatives that have been rolled out to establish or update data standards, transmission protocols, and platforms across the industry. According to Fannie Mae’s Mortgage Lender Sentiment Survey released on Wednesday, 74 percent lenders believe that these initiatives are valuable to the industry.
Noting that the mortgage industry continues to be focused on improving data consistency, transparency, and flow across the mortgage lifecycle loan, the survey indicated that enhancing data accuracy and consistency; enhancing borrower experience; and reducing repurchase risks were the key benefits of these data initiatives according to the lenders.
It also noted that lenders felt that larger institutions were more likely than smaller ones to find these data efforts valuable and that mortgage banks and credit unions were more likely than depository institutions to perceive these efforts as valuable.
In terms of challenges, 34 percent lenders felt that updating and integrating IT systems was a major challenge, followed by 32 percent saying that finding key players to follow data standardization requirements was a big hurdle. Working with third-party technology vendors and ensuring data quality and accuracy were also some other challenges listed by lenders.
According to the survey, when asked to provide ideas on how to derive more value from these initiatives, lenders suggested developing clear standards of practice, addressing compliance issues, and ensuring system integration across players.
While data standardization efforts are critical for an industry transitioning to a more streamlined digitized world, the findings of this survey show that the industry must address the need for more innovation and end-to-end integration issues and help all players effectively compete in a technological environment.
Addressing these issues, might take some time, but a start has been made through the Five Star Fintech Summit, a conference that will cover all aspects of Fintech and its future applications. The two-day conference being held in Nashville, Tennessee on March 21 and 22 features speakers in the technology, operations, and mortgage industry including Tracy Stephan, Director, Enterprise Innovation Team at Fannie Mae. Transparency, accessibility, and ease of use will all be highlighted in this two-day meeting along with insights on the latest approaches to bringing financial technology into the forefront of consumers’ experience.
To register for the conference, click here.