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Mortgage Data Initiatives: Setting the Stage for Digital Disruption
Wednesday, March 7, 2018 6:35 AM

New research from Fannie Mae

Digital innovation is disrupting nearly every industry with varying speeds and intensity. The mortgage industry is no exception.

Since mortgage processes involve transmitting large volumes of data among interconnected players, new initiatives have been rolled out to establish data standards, transmission protocols, and platforms used across the industry (for example, the Uniform Loan Delivery Dataset and the Uniform Closing Dataset). These and other data management and standardization efforts are designed to improve consistency, transparency, and flow throughout the mortgage loan life cycle.

In a new study from Fannie Mae, our Economic & Strategic Research team surveyed senior mortgage executives to understand how lenders are adapting to these data initiatives and to uncover their pain points.

Key findings:

  • A majority (74 percent) of lenders believe mortgage industry data initiatives are valuable, with larger institutions more likely to say so.
  • Enhancing data accuracy, consistency, and borrower experience and reducing repurchase risk were cited as the biggest benefits.
  • Lenders said updating and integrating systems and aligning various parties are the biggest challenges.
  • Lenders said they need additional resources, including more time, more support from vendors, dedicated IT resources, and additional training.
  • When asked to provide ideas on how to derive more value from these initiatives, lenders suggested developing clear standards of practice, addressing compliance issues, and ensuring system integration across players.

Data standardization efforts are critical as the industry transitions to a more streamlined and digitized world. However, the findings show that further innovation is needed to address end-to-end integration issues and help all players effectively compete.

Read the full report.