Altisource Releases Annual Report on the State of the Originations Industry
Of the mortgage origination professionals surveyed, 22 percent cited artificial intelligence (AI) as the most important factor to differentiate their organization in a competitive mortgage market. AI and machine learning are driving new technology adoption in the industry in two important areas: point-of-sale (POS) solutions and back-office workflow. POS solutions are being used to improve the customer experience by making the process of applying for a loan more simple and consistent. Back-office workflow incorporates AI and machine learning to improve quality, drive efficiency and enhance margins for early adopters. Two examples of how organizations are using these technologies include high-volume document processing and intelligent data extraction.
A high level of concern remains that loan production expenses will continue to increase and volume will drop. Of the mortgage origination professionals surveyed, 90 percent cited concern, up significantly from 78 percent in 2018. Those surveyed cited the leading steps taken to adjust to the increased cost of production were adding automation to the process (24 percent) and consolidating vendors (24 percent).
According to the survey findings, most organizations plan to expand their product offerings for non-qualified mortgage loans (non-QM), construction lending and HELOC over the next six months. More than two-thirds of mortgage origination professionals plan to expand their offering to include HELOC (67 percent), followed by construction lending (62 percent) and non-QM (61 percent).
“While the cost to originate a mortgage has continued to rise in recent years, advances in technology are providing opportunities to improve the bottom line,” said
Click here to download the full report, “The State of the Originations Industry.”
Michelle D. Esterman
Chief Financial Officer
Britt E. Gottlieb
Senior Manager, Communications
Source: Altisource Portfolio Solutions S.A.