While the front end of mortgage lending might look good, a look into the back end of operations shows a much different story. Mortgage lending is in desperate need of a technology update.
Nominations for HousingWire’s Tech100 Award opened at the beginning of this month and nominations close on January 25.
One of the biggest changes to this year’s award is the addition of our editorial advisory committee. This year, for the first time ever, nominees will be reviewed by an advisory committee, made up of some of the best minds in the housing industry. This committee will then advise HousingWire’s internal award review board of potential finalists before the winners are selected. Click here to see who is on this committee.
But now, members of that committee have come together to inform HW readers on some of the biggest issues in tech today. HousingWire interviewed Mike Jones, Dixon Hughes director of advisory services, who talked about some of housing’s biggest issues – including the need for more transparency among mortgage lenders.
Here is the second part, with more questions and answers to follow from Jones and other experts in the weeks leading up to the end of the Tech100 nomination period:
HousingWire: What areas of housing market are in highest need for technology innovation?
Mike Jones: Mortgage lenders today are like muscle cars were in the late 1970s. They look pretty good on the outside, but under the hood they are held back by outdated technology and complex rules and regulations.
There’s been a lot of innovation on the “outside,” or the front end of the mortgage lending process where applications are taken. But back-end tasks like processing, title verification and compliance audits still rely heavily on manual effort. There’s a lot of inefficiency in the back office that points to an opportunity for innovation.
HW: How do you think technology improves the housing economy and homeownership experience?
MJ: Consider how things have changed in the last decade or so. How buyers find a property, apply for a loan and hire movers and other service providers is dramatically different now. Newspapers, telephones and branch offices have been moved aside by digital channels. The role of real estate agents and loan brokers has fundamentally changed, too. All this is driven by technical innovation which will continue to progress.