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The continued path to a true digital mortgage: Correspondent digitization

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Today’s mortgage companies are continuously challenged to find ways to be more efficient, more profitable, more accurate, and to create an optimum experience for both their borrowers and users. To keep up with fluctuating market conditions and remain competitive, investing in digital mortgage technology has become a critical component to surviving and thriving long term. In fact, leveraging technology, a shared data exchange and a robust network are all essential ingredients to delivering an even better mortgage process. With these digital assets and networks, lenders can embrace a broader, more sustainable business model that helps increase margins and maintain revenue. As such, a truly end-to-end digital mortgage actually extends to include the correspondent lending process as well.

While correspondent originators still underwrite and fund mortgages; post-closing, they sell the loans to another institution as part of the secondary market. There is huge untapped opportunity and potential to acquire more loans in less time with both mortgage sellers and buyers leveraging the same technology to reduce duplicative tasks and accelerate purchases. One of the benefits of having that bi-directional connection for both communication and condition clearing is that mortgage companies can now exchange trusted data within the same system. This means you no longer need to stop and process a sale or verify data manually at any part in the mortgage supply chain. A change like this can save you time and money, as well as drive increased ROI.

As part of ICE, a global data, technology and market infrastructure company, ICE Mortgage Technology® is better able to digitize the secondary market for both sellers and buyers within our streamlined loan manufacturing process than any other provider. For institutions who define the perfect post-close loan portfolio as selling loans, ICE Mortgage Technology can seamlessly extend platform digitization for that secondary market activity, and even more importantly, within our same platform that is already being used for origination. With our unparalleled infrastructure and ecosystem, as well as easy activation and utilization, originators and investors alike experience accelerated digitization that is unmatched.

Ultimately, correspondent digitization creates a quicker purchase time for investors, a more seamless transaction for originators, and creates a broader end-to-end digital mortgage – which becomes a win-win scenario for all. This key advantage should be something all financial institutions consider for 2021 and beyond.

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