Technology in Mortgage Industry - Digital roiled Traditional Banks' Lending Model

Mortgage Industry is the best example of technological innovation leading to dis-intermediation and dramatic growth of non-bank mortgage lending after the global financial crisis. Non-bank lenders have become dominant in the mortgage market, after banks retreated and became risk averse, and not scale/be elastic per business demands.

FinTech lenders process mortgage applications much faster than traditional banks. Faster lending has not increased defaults, help increase refinancing and at the same time not biased/predatory to marginal borrowers.

Transforming to a digital lending model drives quantifiable bottom line impact by expanding & accelerating the sales funnel while reducing costs through greater process efficiency.

Technology improved

• Sales Productivity (based of MarTech, Dialer)

• Pull Through Rate

• Cost to Originate and Fulfill

• Cost to Serve

Mortgage Bankers Association (MBA) has a good representation of USA Residential Mortgage Market Segments:

Functional Overview of Residential Lending

Residential Mortgage Company Types

Foundational MBA Training Completed , Certifications

• 100.1 – introduction to Mortgage Banking

• 100.2 – Loan Production Basics

• 100.3 – Funding, Warehousing, Shipping and QC Basics

• 100.4 – Secondary Marketing Basics

• 100.5 – Loan Administration Basics

• 201.01 – Introduction to Fair Lending