What Is Mortgage Technology Innovation, Really?

In a high-interest rate environment, mortgage lenders must find new ways to differentiate to be successful. How do they do that? The only answer is to innovate by improving the overall mortgage process by adopting new technologies, but what is mortgage technology innovation, really?

Quantalytix’s Director of Mortgage Technology, Michael McCay, said, “Innovation is rarely about hype. Real innovation relies on simplicity to resolve a pain-point. It reduces friction and provides enough business value to overcome the challenges of change. Real innovation makes you feel stupid that you didn’t think of it sooner.”

McCay is the director of mortgage technology for Quantalytix and the CEO and founder of Metal Beard Technologies. McCay is a seasoned technology management professional specializing in the mortgage industry since 2007. His background is in software development and system administration, with more than two decades of expertise in every aspect of the mortgage eco-system. From origination and processing in the retail and online lending space, to capital markets and servicing in the wholesale and correspondent lending space, his industry-specific skillset provides a unique perspective on technology and innovation. His focus is on implementing software and automation into daily business processes to make things faster, and easier.

“I define mortgage technology innovation as solutions that allow industry participants to re-imagine what it means to originate a mortgage loan,” added Jim Rosen, Head of Product Management and Services at Mortgage Cadence. “Technology solutions that allow the borrower, employee, lender, and service provider to all work together in ways that previously felt unworkable, too cumbersome, or impossible let us view the entire experience from a new perspective. Our technological landscape continues to bring exciting new capabilities to the market, and challenges us to deliver superior experiences, unprecedented efficiency and unparallelled security.”

Specifically, with reverse mortgages on the rise in the current market, Mortgage Cadence knew it was important to include both forward and reverse lending in its platform. So, they innovated and now lenders are enabled to work more efficiently, leveraging automation and workflow tools that enable an excellent borrower, sales, and operational user experience from their MCP Platform. It was important to the team that this experience was available for reverse lending and not just forward. The platform is scalable and flexible enough to support both proprietary and HECM reverse products, including all aspects of financial assessment. The cloud-based platform also provides the ability for real-time collaboration, eliminating the need for other platforms or channels of communication. Not only does this support security, but, again, promotes efficiency. With a device-agnostic design, lenders can access the platform at any time, from anywhere. MCP also handles any documents a reverse lender needs.

“Industry thought leaders define mortgage technology innovation as the continuous evolution and integration of cutting-edge digital solutions within the mortgage lending process,” said Shannon Johnson is Product Manager – Touchless Lending for Tavant where she is responsible for spearheading Touchless Lending, the latest and most advanced edition of its AI-based lending platform. “This innovation encompasses advancements in areas such as automation, artificial intelligence, and data analytics, aimed at enhancing efficiency, accuracy, and customer experience. Thought leaders emphasize the importance of adapting to changing market dynamics and customer expectations while leveraging technology to streamline workflows, mitigate risks, and drive sustainable growth. Ultimately, mortgage technology innovation is about harnessing the power of innovation to meet the evolving needs of borrowers, lenders, and stakeholders in the mortgage ecosystem.”

And is technology innovation alive and well in mortgage lending today? “Technology innovation is at its high in the U.S. mortgage industry,” answered Abhinav Asthana, a product business and growth leader at Tavant, a Silicon Valley-based provider of digital lending technologies. With more than 15 years of experience in product design, management, engineering, and consulting, he has a proven track record of delivering innovative and impactful solutions for the mortgage and consumer lending industry. He is passionate about creating and executing the vision and strategy for Tavant’s product business.

“We at Tavant are creating solutions with AI that enable personalized customer experiences through tailored loan offerings and advice, optimizing each interaction,” Asthana says. “Additionally, there is innovation with technology that automates the loan manufacturing process, specifically verification of credit, income, assets, collateral, title to analyzing the data for fraud and loan approvals, significantly reducing processing times and human error. Lastly, the development of mortgage products with dynamic pricing based on real-time data allows lenders to offer more competitive and customized rates. This technological shift is enhancing both operational efficiency and customer satisfaction in the mortgage sector.”

In short, no matter how you define innovation, it is happening in mortgage lending today and the winning companies of the future are hard at work today improving the mortgage process to enable a better tomorrow.