Obstacles & Opportunities: A 2021 Mortgage Industry Recap
For better and for worse, 2021 was a record-breaking year in the mortgage industry.
From record low interest rates, spiking home prices, record-setting levels of mortgage borrowing, and the unprecedented demands of forbearance initiatives, the challenges came one after another.
The obstacles, however, were also a source of opportunity. They resulted in increased usage of new tools for saving time, minimizing disruptions, and making quality control and compliance improvements.
Here’s a recap of some of the challenges, innovations, and solutions described in some of our most widely read content last year.
Quality Control in Another Year “Like No Other”
Keeping up with the demands of mortgage QC is a challenge in any year, and our annual top mortgage QC findings report proves that notion true again and again. Our report for 2020 highlighted the fact that closing disclosure findings consistently top the list and provided insight into the root cause of these findings: missing documentation. The report states why documentation is the weak link in the process and explains that it doesn’t have to be. Our mortgage compliance review manager provided suggestions for avoiding these findings and, almost a year later, they’re still worth reading.
Servicing QC also came down to document management in 2020, exacerbated by millions of loans in forbearance. According to our annual servicing QC findings study, the impact that the surge of CARES Act forbearance plans had on servicers led to several QC oversights. Take a look at what we found and learn how to avoid problems in 2022.
2020 was also a year in which remote working added to the challenges of MERS data reconciliation. Nevertheless, there was good news overall as our clients’ audits showed a continued trend toward fewer exceptions.
Paper Taming & Software Wrangling
Well into the era of digital transformation, 2021 was the perfect year for optimizing software solutions. And MetaSource did just that. In April, we closed the gap between loan origination systems (LOS) and our QC audit platform, QLinkTM, with what might just be the integration you need to streamline the entire quality control process.
In 2021, MetaSource also rolled out a new version of our lien release and assignment software, EclipseTM. The upgrade includes real-time insights and on-platform exception handling to eliminate bottlenecks in a process fraught with the potential for error.
But while MetaSource clients achieved great benefits with our new QLink integration and Eclipse upgrade, some companies in the mortgage industry struggled with inefficient business processes in 2021. And the prime culprit was more often than not paper.
The mailroom, for instance, was a major paper-clogged function that businesses focused on. While the pandemic was a tipping point, a centralized hub full of paper mail had already outlived its usefulness long before social distancing made it a bad idea on an entirely different level. We recognized this at MetaSource and shared how a digital mailroom solution can help companies in the mortgage industry not only solve problems now but avoid them in the future.
Profitability & Costs
While time savings has always been and will always be a main driver for mortgage industry innovation, it wasn’t the only one in 2021. Mortgage Bankers Association research shows that origination costs are rising, which made money savings a main reason for adopting technology as well. From higher servicing costs to the rising salaries of underwriters, our blog post about industry cost pressures was one of the most widely read in 2021.
In 2021, the mortgage industry focused on the importance of expertise when it comes to selecting partners. Our audience showed interest in the fact that we received approval from Fitch Ratings, confirming the credibility of due diligence solutions that are also accepted by Standard & Poor’s (S&P).
Start the New Year Right with Help from MetaSource
At MetaSource, we are committed to providing our mortgage industry clients with time and money saving solutions that leave them with fewer headaches and more opportunities to grow and innovate. That’s our promise every year. Our mortgage solutions are built around the goal of removing the obstacles standing between you and the growth of your business. Contact us to learn how you can put our technology, services, and mortgage industry professionals to work and achieve success in 2022.