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Servicers Suffer from Disparate Tech

Today’s mortgage servicers are suffering from overly disparate technology solutions, and those disconnected systems are holding businesses back, according to a recent report by OrangeGrid.

The report, titled “Rethinking Your Mortgage Servicing Ecosystem – Responding to Increasing Risks and Costs,” claims that the typical technological tools used by a mortgage servicer are out of date, antiquated, and holding businesses back. This is largely because tech solutions in today’s post-crisis, highly-regulated industry are product-specific, which creates a “complex ecosystem made up of siloed disparate systems.”

“These disparate systems created fractured inefficient processes adding to operational expense and risks since users are no forced to work in multiple systems to complete their work, often times re-keying important information between systems,” OrangeGrid reported. “While the introduction of these applications provided a solution to a targeted problem, they created another issue with the lack of transparency and cohesiveness in servicing a residential loan.”

Out-of-sync technologies also make it hard to serve the millennial homebuyer, who expects a more seamless, digitized solution when purchasing a home.

“The legacy systems in use today do not translate to a modern workforce or the growing class of consumers entering into the mortgage market that expects a completely difference experience than what is largely available,” OrangeGrid reported.

The solution, according to OrangeGrid, isn’t migrating to an all-encompassing one-stop-shop system. Instead, the report proposes “an overlay platform,” which can “sit above the overall system architecture, creating a single truth of process” and offer a “shared status across a chain of events that can deliver an improved user experience, provide greater transparency to loan information across all supporting systems, and can provide solutions for existing gaps in the overall process.”

This type of solution will “bridge data gaps,” according to OrangeGrid, and provide “incremental productivity lift without risk of crippling ability to conduct business as usual.” Additionally, it will provide lenders a technological move that’s not too intimidating to take on.

“Lenders pause when deciding whether to consolidate legacy solutions and migrate to new technology,” OrangeGrid reported. “They see (often after experiencing such trauma before) work, distraction, and cost. By selecting a flexible and configurable software solution, bundled with implementation and operational support by business process practitioners, risks are greatly minimized, cost is controlled, and process mistakes or new business changes will be easy to fix.”

About Author: Aly J. Yale

Aly J. Yale is a freelance writer and editor based in Fort Worth, Texas. She has worked for various newspapers, magazines, and publications across the nation, including The Dallas Morning News and Addison Magazine. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more.

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