October 16, 2019
Challenges Faced When Implementing New Mortgage Technology
There is a lot to look forward to with regard to bringing new technology into the field of mortgage servicing. Sometimes it seems like the promise of advancing tech has the potential to solve all of the issues servicers encounter, and from the promises one hears it would be easy to assume that we are already there. But there are challenges, yet, that servicers will face when attempting full adoption of new mortgage technology.
Chief among these are issues that fall outside of the control of the servicers themselves. Mortgage-making is not a hermetic process. For example, the IRS has control over the timeline for providing instant turn-around on requests for tax receipts—and it has not prioritized making this process instantaneous. And some States (ever the laggards, are we right?) maintain their requirements that closing documents be signed with pen and ink.
Moreover, the process of implementing new technology does require internal change to servicer companies as well—and these can be ships whose course are not easily altered. There is, firstly, the issue of researching and evaluating the various technology vendors for the most efficient and secure systems. (Not everything a company promises may turn out to be true, after all, and in this industry certainty is held at a premium.) This entails more cost than might at first be assumed.
Then there’s the financial investment into the technologies, both on the front end and in the servicing and maintaining of the systems, which can be a difficult decision to pull the trigger on—it can be much easier to justify sticking with the “devil you know.”
And during the transition period from the traditional processes to the new tech processes, the costs can be double, because both processes are being financially supported. An entire organization must demonstrate full acceptance and adoption of the new technological processes—including a great deal of training—in order for them to become efficacious.
Here at Topouzis & Associates, P.C., we think outside the box to make sure property title is passed unencumbered, and we provide title insurance to back our title services. Whether you’re a lender, an investor, or purchasing a new home, the policies we connect you with provide peace of mind that your new property will not bring along any nasty surprises. Whether you live in Providence, Rhode Island; Cambridge, Massachusetts; or Miami, Florida, feel free to contact us for more information.