Survey shows that technology played a crucial part in the game
The growing costs of loan production are driving mortgage originators to find new ways to rise above the competition.
Originators were highly concerned about origination costs, worrying that loan volume would drop as production expenses continue to rise, according to Altisource’s annual origination survey.
The percentage of respondents who cited concerns grew significantly, up from 78% in 2018 to 90% in 2019. Those surveyed said that adding automation to the origination process (24%) and consolidating vendors (24%) were the top two steps they’ve taken to adjust to the increasing production costs.
“While the cost to originate a mortgage has continued to rise in recent years, advances in technology are providing opportunities to improve the bottom line,” said Ben Hall, vice president of product at Altisource. “It is more important than ever for organizations to invest in technology and work with vertically integrated third-party service providers to leverage leading technology solutions.”
The report also showed that mortgage originators are looking to broaden their product offerings for non-qualified mortgage loans (non-QM), construction lending, and HELOC over the next six months.
More than two-thirds of mortgage origination professionals said they plan to expand their offering to include HELOC (67%), followed by construction lending (62%), and non-QM (61%).
In addition, the respondents listed some of the most important factors that give their organizations a competitive edge in the mortgage market. Around 22% cited artificial intelligence as their top go-to as AI, along with machine learning, are being widely adopted in the industry’s point-of-sale and back-office workflow areas.
