The beauty of technology is that it provides a faster, cleaner and more efficient way to produce a result. The problem with technology is that every user wants to get to the desired result in a different manner. As such, it is imperative when developing or enhancing your technology platform that you take into account the way your system will be used. If the platform is to be used by more than one originating lender, then the need for flexibility is essential to the success of the platform.
We all use technology in one way or another. The goals of creating a platform can be very different. Having been in the industry for nearly 20 years, I can assure you that technology in this industry has made huge strides. Although technology in the reverse space doesn’t hold a candle to the forward market, the reality is that the enhancements that have been made have significantly helped grow the industry.
For years, many individuals have simply shopped for a system that could provide them with the necessary calculations and perhaps create an easier way for them to obtain application and closing packages. Then, as technology grew, it became clear that much could be done with the data stored in a particular system. Now, not only can an originator process, underwrite and close a loan, but they can fund, post close, track collateral, etc.
When I talk to a prospective customer about our Reverse Express system, we nail down exactly what they are looking for. Do they need a system only to produce application packages or do they need a system that will take them all the way through closing? Will they be able to transmit their data to an investor electronically? There are so many customizable options to choose from that it can be a bit overwhelming, but that’s the beauty of it.
Compared to the forward mortgage world, we have very few originators in the reverse mortgage space. As such, the need for multiple technology platforms has simply not been as high. Couple that with the fact that many of the larger companies have found that developing their own origination and post-closing system is a better alternative to utilizing a third-party system, and there is little room for growth in the third-party system.
Just as the industry has changed and grown over the past few years, so too have the rules and regulations. As a technology and document provider, Bay Docs has intricate knowledge of these changes. With the Dodd-Frank regulations and many other state agencies weighing in on compliance requirements, originators should make sure that all aspects of their system have grown with the times.
Technology will continue to be at the core of growing our industry, because without it we’d be moving at a snail’s pace!