Mortgage origination volume will decline next year compared to 2009 levels, but the use of software-as-a-service (SAAS) applications will rise, San Mateo, Calif.-based SAAS developer Dorado Corporation said in its projections for next year. Dorado projects more than 30% of mortgages created next year will be originated with SAAS applications, which generally work as Web-based tools a developer hosts on its own servers and distributes access through subscription licenses. “We believe 2010 will be a year in which both growth-oriented lenders and the leading banks will continue to differentiate themselves based on the adoption of software-as-a-service and other cloud computing processes to improve workflow efficiency and enhance customer service,” said Dorado CEO Dain Ehring. The company said a reduction in Federal Housing Administration (FHA) originations and refinance loans will decrease total mortgage volume next year, and borrowers who do purchase mortgages will have access to low interest rates. The firm said it believes unemployment rates will improve and employment will stabilize. Potential borrowers will benefit from advances in mortgage technologies like Google’s new mortgage search feature. Mortgage originators who successfully adapt to next year’s new compliance regulations will have a competitive advantage over competitors. In addition, lenders will continue to put more emphasis on maintaining underwriting standards and reducing errors in the origination process. “The unprecedented turmoil of the last two years is giving way to a period of tremendous innovation in the mortgage industry,” Ehring said. “The outline of what the not-so-distant future industry will look like is now starting to emerge. Look for additional commentary from Dorado Corporation in an upcoming 2010 edition of HousingWire magazine. Write to Austin Kilgore.