Will Mortgage-As-A-Service Become the New Norm?
11/10/23
In a world where technology is reshaping industries, the mortgage industry is not exempt from the winds of change. With the rise of digital platforms and advancements in automation, the Uberfication of the mortgage industry might be closer to reality than we think. A year ago, predictions were made about a massive compression of mortgage loan officers, and the license renewal cycle in 2024 will reveal the actual impact. Generation Z is the most technologically saturated generation the world has ever seen. 2024 may be your Blockbuster moment. It is hard to believe that the Blockbuster Board of Directors couldn’t see the future. They were convinced that consumers loved the experience of going to a brick-and-mortar store to aimlessly wander around the stained carpet floors only to miss the last copy of the new release. Uber was a joke, too. So was Airbnb. Let’s break down this riddle.
The Rise of Mortgage-as-a-Service
One significant development in the mortgage industry is the emergence of Mortgage-as-a-Service (MaaS). Companies like Infosys and Better have joined forces to offer an end-to-end digital mortgage white-labeled platform. This new service revolutionizes mortgage operations, integrating a comprehensive suite of cloud-native solutions. With their expertise in digital platforms, Infosys and Better offer a dynamic and automated approach to running business operations, promising greater efficiency, and increased mortgage originations.
The Impending Compression of Mortgage Loan Officers
Imagine a world where mortgage loan officers are as rare as unicorns or travel agents. That may not be too far-fetched. Predictions of a massive compression of mortgage loan officers are becoming a reality. The impending renewal cycle in 2024 will provide insight into how many professionals decide not to renew their licenses. It’s like a game of musical chairs, but loan officers are contemplating their future in the industry instead of securing a seat. While the market is down, demand is not. They are waiting. Do we think the next generation doesn’t want to own a home? Of course, they do.
Investment in Technology: Don’t End Up Driving an Empty Taxicab!
There was a time frame in New York when Taxicabs didn’t know what to do. Imagine driving an empty taxicab, hoping a passenger would magically appear. That feeling is what many real estate agents and loan officers experienced in 2023. What worked before didn’t anymore. As the Uberfication trend gains momentum, traditional processes, and manual tasks become less relevant. Embracing technology can streamline operations and improve customer experience. Mortgage companies can stay relevant and competitive in a rapidly changing market by leveraging digital platforms, automation, and artificial intelligence.
The Benefits of Embracing the Uberfication Trend
Embracing the Uberfication trend in the mortgage industry comes with many benefits. By adopting new technology, companies can reduce operational volatility and costs while improving scalability and efficiency. Technology integration streamlines processes and enables mortgage originations at significantly lower costs. Mortgage technology has proven its model in many categories and has become a dynamic solution for hundreds of lenders, banks, and credit unions. While many have adopted some of these advanced technologies, many are still skeptical, clinching their DVD cases.
Uberfication in the mortgage industry is right around the corner. As companies like Infosys and Better team up to offer Mortgage-as-a-Service platforms, we see a shift toward automation, digitalization, and increased efficiency. The impending license renewal cycle in 2024 will be a litmus test, determining the number of mortgage loan officers willing to work through another down year. Lenders must invest in technology and develop new processes to adjust to the new market. Change is inevitable; those who adapt will thrive and see a new day.
