TowerGroup Foresees Future Growth If Lenders Orchestrate the Workforce
At a recent Tavant Technologies Executive Dinner event, mortgage industry analyst Craig Focardi urged the mortgage industry to adopt a “multi-pronged” approach to automate and align business processes.
TowerGroup Research Area Director Craig Focardi predicted software automation will help bring a strong return to growth for the mortgage industry in a presentation he delivered here during Tavant Technologies’ executive dinner event at the Mortgage Bankers Association’s National Technology in Mortgage Banking Conference and EXPO.
In his remarks, Focardi said new loan growth returns and the combination of other factors including favorable interest rates, positive home prices, rising income levels and a healthy overall economy, could result in the mortgage industry’s first $4 trillion market by 2012. To get there, Focardi said lenders will have to do their part to pursue successful workout of current home price stagnation and defaults. Additionally, an integrated, multi-product view of customers will be required to spur successful automation of the mortgage loan process.
“Tomorrow’s leading lenders must grow multiple consumer relationships and fix retention,” Focardi said. “At the same time, lenders must pursue continuous cost reduction strategies by turning to technology for operational efficiencies and integrated lending and IT processes.”
“Craig Focardi is a highly regarded thought leader and his presentation complemented and reinforced the importance of technological excellence, in which Tavant has maintained a leadership position within the mortgage industry,” said Sarvesh Mahesh, CEO of Tavant Technologies. “We are honored that he used the occasion of our annual executive dinner event to point out that orchestrating the workforce through automation will enable lenders to convert more applications, better understand their risk, cut processing costs and retain qualified borrowers.”
Focardi concluded his speech with a look to headline events likely to transpire by 2012:
- Lenders will optimize their product sets to match client needs.
- Enterprise lending systems will become successful within mortgage lending, though less so in retail banking.
- eMortgages will become a reality, with market share in the high single digits.
- Document imaging in loan origination will be commonplace.
- Global sourcing will have become well entrenched.
New types of systems and functionality, Focardi said, ranging from enterprise content management systems to ongoing automated decision enhancements, will drive continuous improvements in the changing landscape of the mortgage industry.
About Tavant Technologies
Founded in 2000, Tavant Technologies, an ISO 27001 compliant and SEI-CMMi level 4 certified organization, is a specialized IT solutions and services provider. Tavant’s key offerings include a comprehensive Mortgage Industry Solution and an Enterprise Warranty Management Solution. It differentiates itself through in-depth business knowledge and a superior outsourcing experience. Tavant uses a strong foundation of engineering excellence and process maturity for fast, predictable, cost-effective Outsourced Product Development which drastically reduces the time-to-market for its customers. Tavant has quickly grown to a company of over 1,100 professionals delivering high customer and employee satisfaction.