Lender and title technology integrations are more important than ever in today’s competitive market. Operational bottlenecks that exist in lender-title workflows can negatively impact time-to-close, and removing them can greatly improve the bottom line.
October Research recently brought together Chuck Cain, Senior Vice President at the FNF Family of Companies, and Rod Alba, Senior Vice President & Senior Regulatory Counsel at the American Bankers Association. Matt Kaufman, Vice President of Marketing at Qualia, lead the conversation on industry expectations for 2022. One of the main points explored was lender and title integrations.
A greater focus on lender & title integrations to reduce costs
According to the Mortgage Bankers Association’s (MBA) Quarterly Performance Report, independent mortgage banks and subsidiaries reported a net gain of $2,594 on each loan they originated in the third quarter of 2021, up from $1,470 in 2019. Cain noted that the cost of quality assurance (QA) of a loan has been a longstanding threat to lenders’ margins. Lenders can reduce costs through integrations with title providers to reign in quality control (QC) costs and shorten the time to sell the loan.
Both the largest national lenders as well as community-based lenders can drive down costs through real-time QC during the origination and settlement process. These cost savings are only possible if the lender and title company work together in the same integrated system. With tighter lender-title integration, the lender can sell the loan at the earliest opportunity after disbursement. Cain predicted that more lenders will reach out to their title partners on how they can integrate to reduce costs in 2022.
To meet the growing demand for digital closings, Cain noted that title companies may have to interface with more than one loan origination system (LOS). Ideally, technology that’s intuitive and layered into the core workflow systems for both lenders and title companies enables greater efficiency in the mortgage closing process.
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