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Investing in technology is not the be-all end-all when it comes to efficiency in mortgage origination. Lenders who adopt technology but don’t enforce discipline within their organization won’t see the efficiency savings technology promises. That’s according to Tim Mayopoulos, president of publicly traded Blend, which provides digital tools for some of the biggest mortgage lenders and debuted on the New York Stock Exchange in July at a $4.6 billion valuation.
Being able to leverage technology sensibly could especially become a key differentiating factor for lenders as competition for waning margins intensifies. Lenders will have “no choice” but to adopt technology, he said, or face falling behind their competitors.
“They’ll either do that, or they’ll lose money, or they’ll have to sell their business to someone who is willing to achieve those efficiencies.”
Mayopoulos noted that despite the advances in mortgage tech, the cost of origination has remained stubbornly high. Still, much has changed since the post-recession days at Fannie Mae when “cracking open” any one of millions of delinquent loans meant sifting through hundreds of pages of loan files, Mayopoulos said.
The former CEO of Fannie Mae said that at that time, he was under the impression the conservatorship arrangement was a “temporary timeout.” Thirteen years later, few expect the federal government to relinquish its control over the two mortgage giants.
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The post Tim Mayopoulos on the limits of GSE innovation appeared first on HousingWire.
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