Technology is catching up to the tremendous amount of data we already use on a daily basis. The mortgage industry has not typically been on the forefront of the latest in technological improvements but thankfully this attitude is changing for the better.
Most mortgage loan servicers now store more than 10,000 elds of data on every loan they service, up from a couple hundred data points just a few years ago. Within the next few years, we believe servicers will be able to use all that information already housed in their systems to make better, faster decisions that will enable them to improve customer service, lower risk, reduce fraud, and increase loan quality. The data is there, but we haven’t had the tools to fully exploit it. Now that the tools are within reach, mortgage loan servicers will be able to service loans smarter, better, and faster than they ever have before.
Certainly, regulatory compliance pressures and investor demands are driving servicers to improve, but so are increased consumer expectations. Consumers today are used to pressing a button on a smartphone and getting what they want almost instantly. Buyers can now apply for a loan online and check the status of their application no matter their location or the time of day. Improved data can also improve overall customer service.
Recorded conversations with consumers are yet another way data can be mined for use. In the next couple years many believe this will be another way of advanced intelligence gathering. This technology will enable us to improve the quality of our delivery by identifying exceptions earlier and implementing fixes quicker.
These phenomenal technological advances will make the next year or two an exciting time for mortgage servicers—as well as their borrowers and investors. If technology improvements come even close to matching the increase in data capture we’ve seen over the past few years, taking customer service and quality control “to the next level” won’t be a trite cliché but a reality.