We put together a snapshot of the Mortgage industry executive round table session that KP Hari, Co-founder and Managing Partner of Speridian Technologies co-hosted with Matt Slonaker, CEO of M. Allen LLC & 28-year veteran of the mortgage industry.

Participants:

Bob Dubrish – ex-CEO, Option One Mortgage Corporation

Steve Nadon – ex-COO, Option One Mortgage Corporation

Teji Singh – ex-CSO, Option One Mortgage Corporation

Dave Vida – ex-Senior VP, Option One Mortgage Corporation

Shana Lakso – ex-VP, Option One Mortgage Corporation

Matt Slonaker – ex-VP, Option One Mortgage Corporation

KP Hari – ex-VP, Option One Mortgage Corporation

Sourav Roy – Head of Enterprise Delivery, Speridian

Challenges: What are the top 5 pain points in the mortgage industry?

  • Not having the right talent & culture
  • Overcapacity in the lending/origination business today (ties to the manual process and many different touch-points/vendors involved in the process today)
  • Forbearance risks and uncertainty
  • Liquidity risks and stress on the system
  • Efficiency and the cost per loan still increasing even with digital transformation initiatives

Key Areas for Action and Recommendations Summarized:

1. Focus on automation and hybrid-automation models in the back-office. As one executive mentioned, the amount of processes and manual work still going on today is ripe for automation. Conduct analysis on the highest impact/value versus feasibility to build your road-map.

2. Predictive intelligence & AI is key to drive more effective decisions in both the front-end of the business through the non-performing loan side of the business. Find “partners” who have the key data (structured & unstructured) to build out prototypes. Validate and iterate the models to enhance accuracy.

3. Data integration initiatives are key to feed decision models and digital transformation projects.

4. Outsourcing non-core functions (IT, HR, Ops, Sales) with partners who can reduce fixed operating costs and build scalable operations or capacity is imperative.

5. The remote workforce here to stay and explore key operating and HR strategies to maximize remote talent into the future (not just through the crisis).

“According to Gartner. Only 12% of financial services organizations are mature in their digital transformations and fall into the digital transformer cluster. Their top driver is disrupting the industry to unlock new areas for growth, enter new markets, or create new revenue streams (like via data monetization). In this cluster, companies are more than doubling the rate of using technologies such as AI, blockchain, or augmented analytics.

To learn more about the session or to run a half-hour executive brief related to pains we’re addressing in the mortgage industry, please contact KP Hari or Matt Slonaker.

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