10:20 AM
Craig Focardi, Senior Research Director, Consumer Lending, TowerGroup (Needham, Mass.)
Craig Focardi, Senior Research Director, Consumer Lending, TowerGroup (Needham, Mass.)
Connect Directly

Automating Loan Processes Is a Must

Within mortgage and consumer lending, the drivers of IT spending are required system enhancements, ongoing maintenance, merger integration, and new systems for risk management and regulatory compliance. Examples include automated loan origination compliance, fraud checks, quality control, and credit and collateral risk assessment systems. Imaging and content management, business rules management, and business process management systems will support these vertical mortgage line of business systems and processes. In loan servicing, IT spending is increasing for automated loan collections, loan modification and integrated credit risk management systems.

Automating regulatory compliance is the most important IT function for 2010. Mortgage investors, credit guarantors and regulators are increasing loan auditing and review activities. The new standard for loan quality is moving toward zero tolerance for missing or inaccurate data, documents and compliance. As a result, loan repurchases and mortgage insurance claims denials (and related lender losses) have jumped and will remain high for the next 24 months. For new loan originations, the cost of non-compliance is now so high that it is no longer possible to argue against compliance automation.

Renewed Lending Starts With Good Information Management
Paperless Workflow Helps BOCM Expand Lending
Automating Loan Processes Is a Must
Regulatory Burdens Require Loan Automation

Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology - August 2014
Modern core systems are emerging as the foundations of effective channel integration and customer engagement initiatives.
Bank Systems & Technology Radio
Archived Audio Interviews
New IT Models for New Financial Services Challenges