Promontory MortgagePath’s Ken Janik and Paul Katz sit down with the ABA to discuss how community banks can leverage our solution to address mortgage challenges, reduce compliance risk and increase profitability.
I recently joined Promontory MortgagePath as a Data Engineer and – for the first time in my career – I’m working in the mortgage industry. I was attracted to the role because of the incredible data- and process-complexity. The almost infinite volumes of data provide both opportunities and challenges. How do we ensure the quality of data – its overall integrity (lineage, security, privacy), accuracy and completeness?. For me, full data transparency and availability are the keys to – and the foundation of – innovative technology solutions. In the mortgage space, the cost to originate a loan has increased dramatically in recent years – from about $3,000 before 2008 to over $9,000 today. Lenders are facing margins that have been stretched so thin their mortgage operations are no longer profitable. And, while it feels like everyone knows technology is the answer, it can be challenging in this climate to drive
Borrower expectations are shifting. Fast, secure, and accessible digital services are no longer an advantage – they’re imperative to remaining competitive. With the rising popularity of non-traditional banks and lenders, banks are seeking innovative ways to meet changing expectations, compete with new challengers and remain profitable. Last week, banking professionals in the areas of information systems and security, compliance, risk and more gathered at the New York Bankers Association’s (NYBA) Technology, Compliance & Risk Management Forum to discuss industry trends, emerging technologies and best practices. I hosted a session at the Forum, where I spoke directly with attendees about the future of digital banking. The session – The Banking Technology Roadmap – explored best practices when partnering with fintech companies and previewed what’s on the fintech horizon. Here are some of the session takeaways: BEST PRACTICES WHEN PARTNERING WITH FINTECH COMPANIES PLAN Know the tech budget What percentage of your
BY KIMBERLY GREENE Do you need to operate in the cloud? The phone rings. A quick look at the caller ID reveals that the Social Security Administration is calling. The conversation goes something like this: “Hello?” “Hello, I’m calling from the Social Security Administration. How can we help you today?” “I don’t know, you called me.” “Why don’t you just give me your social security number and we can take a look.” This, obviously, is where the conversation should end. These kinds of exchanges happen every day, where more and more people are subject to phishing scams, fraudulent requests for passwords or other identifying details, malware and ransomware. Businesses face the same threats, but the repercussions are on a much larger scale. Michael Kolbrener, chief technology officer at PromonTech, recently received a similar call. Although threats are real and common, he said that businesses have
By Colgate Selden The Evolving Role of the Chief Compliance Officer in Selecting Tech and Tech Vendors The digital mortgage promise is compelling: new technology and better workflow meeting consumer, lender, servicer, investor and regulator needs and requirements — all built for compliance and protecting participants from unnecessary risk. If executed properly, the transition from analog to digital drives value all along the mortgage continuum: improving customer experience and education, expanding capacity, reducing cost, minimizing fraud and shortening marketing-to-application approval cycle timing. Regulators have thrown support behind this evolution. Digitally-repeatable processes can help eliminate manual errors and provide auditable, transparent workflows, making compliance elements more transparent and easier to examine. But digital success is not guaranteed: Get it wrong, and you’ve built a platform capable of automating repeatable defects, compliance errors and disclosure violations that could be viewed as fraud, unfair, deceptive, or abusive. Compliance and
In the immediate mortgage-crisis aftermath, most consumers believed getting a mortgage was hard. And it was. But something changed. The past four years spawned multi-billion-dollar ad campaigns from mega lenders reassuring consumers that getting a mortgage is simple now - thanks to technology. (Spoiler alert: it’s not.) The perception may have changed, but mortgages aren’t “easy,” and the true transformation from an analog to a digital mortgage process is still in its infancy. When we ask clients what they’re looking for from their technology solutions, most, but not all, lead with, “We want to do things like we always have, only faster, cheaper and in a less-cumbersome way.” So why is this taking so long? Compliance, until relatively recently, was an all-consuming, moving target diverting attention and resources away from innovation. The boom-and-bust mentality of the mortgage business — “We’re too busy doing refis to upgrade our systems; refis have