Introduction

The lack of a major shift in AVM lending from last year to this year has forced the mortgage industry to reassess how it’s going to succeed. With no significant increase in housing inventory or a surge in homebuyer demand, the industry has become hyper-focused on discussions around budgets, profits and mortgage volume.

These conversations on how to strategically AVM navigate 2019 started to surface after the Mortgage Bankers Association predicted that total mortgage originations would look similar to last year, decreasing to $1.63 trillion in 2019 from $1.64 trillion in 2018.1 The forecast did start to look more optimistic as the year went on, with the MBA increasing its total mortgage originations forecast for 2019 to $1.68 trillion by April. 2 Despite the positive increase, companies remain on the path to figuring out how they are going to grow their business this year.

This classic challenge is where companies can AVM easily make a mistake and overlook one of the most powerful ways to increase margins. Instead of primarily focusing on how to increase revenue, one of the most impactful ways to improve the future of the business is to start with all the ways to drive efficiencies through transformative technology. As one of the most paper-intensive and detailed industries, there are numerous ways an organization can make a simple mistake that overtime costs them a material amount of revenue. It only takes one small leak to sink a whole boat.

Maybe the company is having to continuously resubmit a loan or even take an extra week to process a loan because the application was filled out incorrectly. Or, maybe the company isn’t streamlining the valuation process as much as it could be, creating unnecessary redundancies. These seemingly small issues add up.

The influx of technology innovation in mortgage finance has alleviated a lot of these issues thanks to the introduction of digital mortgage and automated valuation models (AVMs), but this was only the beginning. In the past, it took years or even decades to introduce an innovation to the world, and now, it’s happening within months. Companies need to constantly be checking to make sure they’re keeping up with the latest changes. It’s not enough to go digital once. They need to keep evolving to build a strong foundation for the future success of the business.

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