Mortgage Industry Executive Session Summary

Last week I spent two hours hosting, with Speridian Technologies, an executive round table session discussing the mortgage industry. Summary of the conversation is outlined below:

Top Five: Biggest pain being felt today?

▪ Not having the right talent & culture

▪ Over capacity in the lending/origination business today (ties to the manual process and many different touch points/vendors involved in the process today)

▪ Forbearance risks and uncertainty

▪ Liquidity risks and stress on the system

▪ Efficiency and the cost per loan still increasing even with digital transformation initiatives

Key Areas for Action and Recommendations Summarized

1. Focus on automation and hybrid-automation models in the back-office. As one executive mentioned, the amount of processes and manual work still going on today is ripe for automation. Conduct analysis on the highest impact/value versus feasibility to build your roadmap.

2. Predictive intelligence & AI is key to drive more effective decisions in both the front-end of the business through the non-performing loan side of the business. Find “partners” who have the key data (structured & unstructured) to build out prototypes. Validate and iterate the models to enhance accuracy.

3. Data integration initiatives are key to feed the decision models and digital transformation projects.

4. Outsourcing non-core functions (IT, HR, Ops, Sales) with partners who can reduce fixed operating costs and build scalable operations or capacity are imperative.

5. Remote workforce here to stay and explore key operating and HR strategies to maximize remote talent into the future (not just through the crisis).

Attaching the brief for your review and we cover samples or areas of focus within the process for implementation of RPA, predictive intelligence, and other strategic efforts to position your team for future success.

On behalf of my clients, (Speridian Technologies, National Bankruptcy Services and Spectrum Solutions Acquisitions), we look forward to covering related best practices and can discuss in a tailored executive brief for your team. Please contact mslonaker@mattallendevelopment.com for additional details on scheduling your personalized brief.