Front-loading is the next big step for digital mortgages

Lenders work through adoption of predictive analytics

The digital mortgage has come a long way over the past few years, but one expert says the next big step will be front-loading the origination and funding processes using predictive algorithms.

Daniel Kenshalo, Black Knight vice president of data science and 2019 HousingWire Rising Star, discussed the importance of data in the next phase of the digital mortgage.

As a Rising Star, Kenshalo became a leader at a very young age. His accomplishments continue to drive the housing industry forward.

The secret to becoming a Rising Star?

“I give credit to the support of a high-performing team and knowledgeable help from across Black Knight, as well as service to others in the community and a little luck,” Kenshalo said.

HousingWire: How do you think data can be used to advance the digital mortgage as we know it?

Daniel Kenshalo: More “connected” data – meaning consumer banking data that is merged and connected with loan performance data, home sales data and assessor and recorder data – will be used to predictively identify potential bottlenecks in the mortgage application, origination and closing processes. This connected data will be readily available through application programming interfaces that promote fast, easy integration into legacy and new cloud-based systems. Specific uses of the “connected” data include analytics that reduce assessment risk and pre-validate candidate qualification for an even wider array of homes. A buyer-seller-property predictive matching analytic is one specific use enabled by connected data.

HW: Do you think the housing industry currently has a firm grasp on the use and importance of data, and knows how to use it to create a better mortgage experience for all parties? 

DK: I think significant investments have been made that reflect the importance of data in a smooth mortgage process, but there is still work to be completed. Analytic platforms specifically designed for mortgage data and enablement of custom analytics will become more prevalent and adopted throughout the industry.

HW: What do you see as the “next big step” for digital mortgages? 

DK: Significant horsepower and investments have been used to identify, prospect and pre-qualify prospective buyers, but I believe the next big step for digital mortgages will be more “front-loading” of the origination and funding processes enabled by predictive algorithms supported by rich, connected datasets. For example, currently, a person pre-qualifies for a mortgage amount and makes an offer on a home, and if the offer is accepted, then the actual mortgage/underwriting process begins. Access to more computational power, robust data and predictive analytics could allow this process to be “front-loaded” for a number of properties that a buyer is likely to make offers on, so that when a buyer “clicks” online to purchase a property, only the funding and final filings with the county recorder are left to complete.

HousingWire’s nominations are now open for our 2020 Rising Stars. But they won’t stay open long – nominations close on February 21, 2020. So nominate your Rising Star today, we want to get to know them!

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