Granted, most of the housing and mortgage industry news out there is deflating, perhaps even deflationary. For example, see the recent announcement by Zillow that as many as one in five markets may be in store for a ‘double-dip’ in housing prices. This just adds to the gloomy news about foreclosure volumes, unemployment and an anemic economic recovery.
Yet there are bright spots. As Exhibit A, we cite the remarkable results that Mortgagebot achieved in the 2009 calendar year. As reported in HousingWire:
“Wisconsin-based Mortgagebot, which develops Web-based software as a service (SAAS) for mortgage lenders, said it added 200 new clients in 2009, bringing its total client base to nearly 950 organizations. With the new clients came a 25% increase in revenue in 2009 compared to 2008; further boosted by a 25% increase in overall contract value for new sales.”
The movement to “eMortgages” (totally digital, paperless origination of loans) is a long term trend that will need to overcome many obstacles. But the pieces are being built out today. Mortgagebot provides a solution that automates and streamlines the online mortgage application process. Other technology innovators are developing solutions for other aspects of the mortgage origination process. In time, as the technologies are proven to be reliable, secure and compliant with regulations, we will have an end-to-end eMortgage process.
In the meantime, as mortgage technology companies offer solutions that perform cumbersome tasks more efficiently and reliably, lenders who wish to reduce costs and stay competitive will adopt those solutions. And that will provide the impetus that mortgage technologists need to grow and thrive, in spite of the general pace of economic recovery.