Many mortgage lender CEOs stay awake at night wondering, “Are we ready for the next downturn we know is coming?”

The mortgage industry is still enjoying a great run with both purchase and refi markets reaching record levels.  But the party is expected to lose momentum in 2021, especially in refis, where a recent forecast called for a 40% drop in refi activity over the next 12 months, according to the Mortgage Bankers Association. Lenders need to prepare for this change.

Rather than go through the inevitable industry layoffs that accompany a downturn, mortgage lenders would benefit more by adopting a sustainable approach with smaller, more effective teams and making legacy systems more flexible to changes. We’ve seen our mortgage and GSE clients drive operations to productivity increases of 40% and decrease the cost per loan by adopting decision management.

learn more about Decision Management solutions for Mortgage Originators

Decision management solutions optimize core mortgage processes so lenders can do more with less.  Loan originators can acquire more opportunities while remaining compliant. New products can be launched faster, turn-times can be reduced, and stubborn manual processes can finally be automated –  error free.

Here are examples of how decision management addresses common pain points in the mortgage industry, across the full lifecycle.

Process Phase Pain Point Solution and Benefit
  • Dependency on LOS vendor for rules updates and changes to multiple systems
  • Inefficient use of data in CRM that prevent originators from identifying new opportunities
  • Inability to roll-out new or specialty products quickly
  • Make updates to business rules, often with little or no dependency on IT
  • Reduce time to market by up to 90%
  • Maintain all business rules centrally to maximize reuse of logic across multiple systems including LOS.
  • Integrate business logic with CRM and other systems to alert team of potential customer opportunities
  • Constraints in adding overlays to GSE requirements
  • Ensuring quality and compliance in documentation
  • Manual underwriting and checklists
  • Update GSE requirements and overlays quickly
  • Ensure only complete and error-free files reach underwriters, making optimal use of their time and reducing turn-times
  • Automate checklists, track progress and audit with reporting
  • High cost-to-cure due to difficulty tracking changes requiring redisclosure
  • Automate detection of changes requiring redisclosure, ensuring timeliness and avoiding penalties
  • Rules managed to the least constraining common requirement
  • Gain more control with complete logic sets customized for program and investor
  • Maintaining rules for forbearance eligibility
  • Quickly update rules consistently and automate checks

Sapiens Decision is a decision management solution that works with any existing LOS, pricing, risk, servicing, or accounting system.  Our platform extracts rules-driven logic from these applications and manages it separately to deliver two immediate benefits:

  • Business logic can be updated quickly, enabling the organization to respond to market changes in near real time, and
  • Decision models that maintain business logic are written using plain English, creating a “no code” capability for business users to make updates without having to wait for updates by the IT team.

The outcome is greater operational efficiency through automation and reduced update cycle times that provide the foundation for a more agile and productive organization.

So, while the party’s still going strong, now is the time to be thinking about the next downturn.  Decision management can help mortgage lenders respond quickly by enabling faster time to market, while shrinking turn times by 40-50% and reducing the cost per loan.  Empower your organization to do more work with a smaller, more efficient team.

learn more about Decision Management solutions for Mortgage Originators

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Alan Holsztynski

Alan Holsztynski Alan is a senior sales engineer at Sapiens Decision, assisting clients in developing solutions. He has over 20 years of experience in the mortgage industry as a technology and operations expert. Alan has served as CIO and held other executive roles at several large mortgage lending institutions with responsibility for technology strategy and operations.