Join us on LinkedIn Follow us on Twitter Like us on Facebook
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation4

Technology Corner

STRATMOR: Data points to disconnect between tech spending, lender productivity

Add This Email A Friend Printer Friendly Version
0 comments
Technology Corner
Monday, November 15, 2021

In its October Insights Report, mortgage advisory firm STRATMOR Group revealed data that shows why lenders have found it nearly impossible to achieve suitable returns on their technology investments. In “Mortgage Psych 101 — FOMO (The Fear of Missing Out),” STRATMOR Group Principal Tom Finnegan discussed the correlation between technology investment and lender productivity in response to a common question posed to STRATMOR: “Are we missing out on the latest technologies?”  

“It’s not surprising that mortgage company executives and managers are asking this question,” Finnegan said in a release. “We know that there is a strong interest in process improvement which is reflected in the great participation in our operations, customer experience, and consumer direct workshops.

“The likelihood of lower volumes in the next few years due to the burnout of refinance opportunities, which will put pressure on profits and a premium on efficient operations, is driving mortgage bankers to look at how they can best earn income and spend their dollars, “he added.

Finnegan said more lenders are asking about new technologies out of fear they will be left behind by lenders who implement them. The reality, Finnegan said, is that lenders should spend less time worrying about missing out on new technologies and concentrate more on giving technology context through process and adoption. Failing to make this important shift means they will never enjoy a suitable return on any new technology they implement, he said.

In the report, Finnegan points to data tracked for more than 20 years. Over that time, he said it has been difficult to see much, if any, correlation between technology spend and either lower fulfillment cost per loan or higher net production income for banks or independents.

“We are not able to ascertain any correlation between technology spend and production profitability in the retail channel at this point,” Finnegan writes. “If there were a technology magic bullet, the provider of that ammo would likely be the most successful mortgage software company on the planet.”

However, focusing on the people who will adopt and use new tools, and the process by which they will use them to add value to the borrower, can ensure a return from virtually any technology the lender chooses to implement.

 “We have observed many instances where a strong, focused staff can overcome somewhat inferior technology, but few or no examples where a weak team can effectively deploy the newest technology well,” Finnegan said.

 

 

Today's other top stories
Veteran appraiser reminds everyone ‘mastering the basics’ is essential
Zillow: Economists say hot housing market ‘not a bubble’
CLARIFIRE, Boston National Title, collaborate
NAR, Urban Institute call for more inclusive access to homeownership
Industry reacts to Thompson FHFA confirmation


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
CAPTCHA Validation
CAPTCHA
Code:
: 
: 
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 1059 times.
A Twitter List by ValuationReview

Print Edition - June 27, 2022

News by Topic   Special Reports   Webinars   Subscribe
Conference Coverage
Appraiser News
Commercial Corner
Legal News
Market Watch
Technology Corner
 
 
2022 State of the Industry
Voice of the Appraiser
Finding and Training the Next Generation
Appraisal Technology
Appraising in a New Environment
Green Appraisals
Archives
 
Move to ANSI Standards
Economic Forecast Series
Keys For Operational Efficiency
Complying with New DEI Regulations
Drones Do's and Don'ts
Archives
 
Subscriptions
Free Email Updates
Try a Free Edition
News by Edition   About        
May 16, 2022
May 30, 2022
June 13, 2022
June 27, 2022
Archives
 
Valuation Review
Contact / Editors
Social Media
Advertise
Are You An Expert?
Subscriber Agreement
       
Copyright © 2002-2022 Valuation Review
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.valuationreview.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Dodd Frank Update
> The October Store
Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
NEWS BY EDITION
SPECIAL REPORTS
WEBINARS
RESOURCES
FREE EMAIL UPDATES
ABOUT
SUBSCRIBE
Conference Coverage
Appraiser News
Commercial Corner
Legal News
Market Watch
Technology Corner
Sponsored Content
Current Edition
May 30, 2022
May 16, 2022
May 2, 2022
April 18, 2022
Archives
Best Practices
2022 State of the Industry
Voice of the Appraiser
Finding and Training the Next Gen
Real Estate Compliance Outlook
Appraisal Technology
Archives
Move to ANSI Standards
2022 Economic Forecast Series
Industry and Regulatory Outlook
Keys For Operational Efficiency
New DEI Regulations
Drones Do's and Don'ts
How to be an Expert Witness
How AVMs Can Work for You
Webinar Archives
Executive Interview Series
Social Media
Valuation Review
Contact Us
Advertise
Are You An Expert
Subscriber Agreement