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June 28, 2023 in Thought leadership4 min read

Riding the mortgage waves with MarketWise Advisors, Part 2: Innovative technology

Your tech is the most important piece of the origination puzzle. Uncover what it should do to enhance the mortgage experience.

It’s one thing to know you need an intuitive and efficient mortgage origination platform — but what is it that makes up the “right” tech?

We’ll once again be exploring the answers to this question with Jordan Brown, CEO of MarketWise Advisors who will tune in with his professional opinion.

In the last blog, we explored how mortgage technology can help you create the operational leverage you need to save time, cut costs, and drive business in all types of industry environments. As a reminder, operational leverage refers to the ability to increase loan volume and productivity without changing your resources.

This time, we’re discussing what features and services your tech stack needs to have in order to increase your operational leverage even in challenging markets. Learn more below.

Personalized origination experiences with an open API 

Integrating a new platform into your existing technology should be simple. With an open API, your developers can easily implement this tech into your business and decrease friction as your teams learn the platform. “Easier integrations accelerate the collaboration between loan teams and borrowers,” Brown says. “And an easier integration needs to include an open API to enable an effortless and seamless integration process.”

Open APIs help enhance your individual platform by allowing your individual programs to interact with each other. This can help fill in missing information in a transaction, for example, which can help create a more personalized experience for your borrowers.

Your origination platform should be just that: Your own. And with an open API, you can create a smoother, quicker transition without the pain and cost of hiring new developers. Open APIs also allow for greater functionality, enhance team productivity and performance, and create truly integrated workflows.

Greater visibility for loan officers

A unified experience is not only necessary for borrowers but for loan officers as well. When their origination technology is simple, intuitive, stable, and consistent, LOs can do their best work without any disruption that may come from tech that is tedious to work on. A centralized platform can help cut out repetitive tasks, create a streamlined experience, improve communication, and provide transparency into every single loan they’re working on.

“LOs prioritize the consumer experience,” comments Brown, “With a tech stack that improves transactional flow, accelerates the loan process, and allows for 24/7 visibility into their transactions, LOs can provide the mortgage experience that their borrowers need and expect. And when they see that their tech can do all of this, it also increases utilization.”

Convenient digital closing

Full and hybrid digital closings save time and money, particularly when you’re able to perform them on the same platform you originated the loan in. This is not only important for the LO but for the borrower’s convenience as well.

“There has been further extension from eSigning to eClosing including remote online notarization (RON) and electronic vault,” says Brown. “This sets the framework for true digital transactions that help with post-closing document management and automated document filing.”

Providing the choice of hybrid digital closings helps loan officers cater to more borrowers who want the convenience of remote signings and online documents.

High tech doesn’t mean low touch

Having the right mortgage technology to help you increase operational leverage is essential to cultivating the relationships that generate business. The point of investing in innovative tech is so you and your loan teams can spend more time on their borrowers and real estate agents to create a more personalized experience.

High-tech mortgage origination technology helps provide borrowers the personalized experience and open communication that enhance the process. Blend’s Mortgage Suite allows for the flexibility and customization you need to operate more efficiently, cut time and costs, and — most importantly — establish trust and rapport with your customers.

Stay tuned for the next and last blog in this series.

Want to learn how you can grow your relationships with mortgage tech? 

June 27, 2023 in Composable origination4 min read

Introducing “Banking on Composable”

Join Cassandra Stumer and fintech influencer, Alex Jimenez, as they kick off our first episode of our new series on composable banking.

Let’s face it. Behind (almost) every banking experience is a siloed infrastructure, running on monolithic architecture — or, from our perspective, borrowed time. You’ve no doubt seen snippets referring to “composability” or “composable tech” during your daily news scroll. But what, might you ask, is composable? Composability is the broad notion that complex systems can be built by combining simpler components, and it’s a concept that’s been gaining traction across technology and culture. It could and should replace the monolith. But, why does this matter? And how is it going to revolutionize these industries?

Those are just some of the questions we’ve tasked ourselves to answer in our new series, “Banking on Composable”. We’ll be sitting down with interesting people in banking tech to unpack composable banking and what the future of finance could look like.

In this first episode, Cassandra Stumer was joined by fintech influencer, Alex Jimenez, to give us the 411 on composable technology, its tech and business applications, benefits, and what it could mean for the finserv industry.

Without further ado

In case you’re short on time, here are our top five takeaways from episode one. It was hard to choose just five.

1. Composing everything from concrete to Legos

The secret’s out: composable tech is gaining traction across industries. Its building block style approach makes it possible for companies to adapt quickly. As Cassandra pointed out, “it’s kind of like moving from working with concrete to Legos. And a fully Lego bank could be our future.” How? Through the speed, agility, adaptability, and resilience that is baked into a composable approach.

2. Composable: one platform to rule them all

Monolithic tech is designed to be self-contained. Each component and all other components need to be present in order to execute or compile the code for the software to run. And, as Alex pointed out, it often leads to redundancies.  Composable is lighter on its feet. Meaning that instead of forcing many different platforms to work together, you would have just one platform that can easily plug into other technologies as needed to get the job done.

3. The Frankenstein of digital experiences

We talk often about digital transformation in the banking industry, and that transformation is largely being powered by emerging technologies. One of the biggest obstacles facing banks today is attracting and even retaining customers. Banks have identified the solution: creating a truly customer-centric ecosystem. But many institutions haven’t found the technology that can get them there. For Alex, we can eliminate the “Frankenstein of digital experiences”, through truly composable solutions. Meaning, composable tech is the vehicle that can get banks on the road to seamless customer experiences.

4. A composable financial future

When we think about the last five to ten years, and the next five to ten years, and the troubling times and tough markets that the finserv industry has faced (and likely will again), could composable tech be the answer? We certainly think it’s worth exploring. Alex believes that broad-stroke transformation of an industry that has been investing in and relying on legacy tech stacks will take time. But he’s optimistic, and pointed out that some banks like KeyBank and Fifth Third are already looking to composable and figuring out how to apply an all-encompassing strategy moving forward.

5. Composing for the next decade of banking

When asked what he was most excited about for the next decade of banking, Alex said, “More organizations are thinking about how they’re going to change their business model. They’re understanding that understanding the customer and changing and improving experiences is key.” Imagining a future where technology is future-proof and we’re able to quickly and smartly enable personalized experiences through modern technology is something to get excited about. And composable tech could definitely get us there.

Want to dive deeper?

June 26, 2023 in Thought leadership3 min read

KBW Webinar: AI in the Mortgage Market

Dive into the world of artificial intelligence in mortgage tech with four renowned industry experts.

Ever wonder how Google Assistant or Siri can help you do your job? Well, Blend had the pleasure of participating in the webinar, AI in the Mortgage Market at the 2023 KBW Virtual Real Estate Finance & Technology Conference. This panel hosted our Head of Growth Sebastian Joll, Boston Consulting Group’s Managing Director and Senior Partner Micah Jindal, and Total Expert’s CEO and Founder Joe Welu with Keefe, Bruyette & Woods’s (KBW) Ryan Tomasellor as moderator.

In this online session, these experts will navigate the state of artificial intelligence in the mortgage industry and discuss how we can leverage these high-tech tools to enhance the loan process. While Siri can’t exactly run credit scores, AI has the potential to help you bring tremendous value to your loan teams and borrowers. Since the general mindset on adapting new mortgage technology has moved from resistance to hesitant receptiveness, now’s the time lenders should start thinking about incorporating these sci-fi-esque tools.

Read on to learn what this panel had to say about the future of AI in mortgage tech.

How can we adopt AI in the mortgage industry?

Even though the hesitancy in integrating new technologies was fairly high in the past few years, the mortgage industry is one of the best to leverage AI for long-term success. Individual organizations (yes, even smaller ones) have a lot of potential to benefit from the wonders of AI and provide value for many of their customers.

For example, lead generation can be competitive and intense but with the right data, gathered from AI, you can target the right prospects and see them through. Additionally, AI can streamline and optimize workflows for loan teams — it can quality check files, manage delinquencies and loan modifications, and ensure the loan is compliant.

What can lenders do to reduce risk? 

The customer experience is a top priority for lenders, and that includes their safety and privacy. Organizations will likely lean on partnerships with data and tech companies to help evolve privacy and compliance processes with AI as this tech comes into the landscape. And gathering anonymized datasets is incredibly important to push this innovation forward. By partnering with other reputable companies to help stay compliant and safe during the mortgage process, lenders can continue to deliver the transparent, trusting experience that customers need.

Unlock the AI opportunity

The potential for AI in the mortgage industry is incredible. With the right mortgage tech, lenders can stay ahead of the competition and be leaders of innovation within the industry — as long as they remain receptive.

AI isn’t going to replace humans, especially in mortgages — a historically personal and emotional process. Rather, AI should enhance your quality of service, allow you to provide expert and customized advice, cut time and costs from the process, and more. The tech is there to shift results and help fulfill your needs. You only need to be open to it.

The key to successfully leveraging AI in mortgage tech is partnering with an organization that prioritizes your needs. Blend is a significant player in this space, and we’re dedicated to creating high-tech products, features, and services that help our customers create an efficient loan process for their borrowers. Learn how we are constantly changing the mortgage tech game from our Head of Growth in the online session below.

Hungry for more mortgage thought leadership?

June 15, 2023 in Consumer Banking Suite3 min read

Benefits of program management for banks

Explore the crucial role that drives performance, channel engagement, and profitability.

In banking, great successes often start as small tests — and small failures can be okay when they help you learn and adapt. But learning and adapting requires financial institutions to track and analyze all of the metrics of a product or portfolio and utilize that information to iterate, test, and optimize. Otherwise, it’s just anecdotal, right?

To do all that properly, banks need to elect a single person to own all of this — someone to evaluate the data, offer recommendations, and make decisions. We call this person the program manager (PM).

The PM may be the CFO or someone who reports to the CFO. The PM may oversee a single product or a suite of products, but this individual is active on a campaign level, monitoring performance across digital channels, in-branch network, and call centers. And this role goes beyond adjusting rates and running profit and loss statements.

Using operational data, the PM can build efficiencies, reduce costs, and drive innovation.

Four areas where a program manager can shine

Underwriting — The PM will identify opportunities for efficiencies: flag inconsistencies, update portfolios, and call out consumer demographics that may need more personal (hybrid) attention. Where can you automate decisioning? Often, the devil is in the details: FICO Score migrations, score cut offs, existing vs. new customer DQ performance, LTV pricing, fair lending, credit limits, etc.

Marketing — The PM can straddle the marketing and sales worlds and function as both a liaison and motivator to keep the teams aligned. Is everyone meeting their KPIs? Are those the best metrics to use? How does the work of your sales and marketing teams support the objectives of your People, Processes, and Technology framework and strategy? Your PM will know the answer.

Cross-sell — The PM can ensure cohesiveness and consistency between products and channels (for both consumers and bankers) by leveraging rich, realtime data and reporting. It’s that level of agility that increases ROI and can even inform and optimize onboarding and activation. And optimized onboarding leads to activation, top-of-wallet, and primary financial institution (PFI) status.

Service and delivery — The PM can develop a keen understanding of the competition and trending consumer behavior to bring a clear perspective. Are you delivering customer experience excellence or are you a bit unsure about the needs and expectations of your customers? How does your product focus, pricing, and messaging compare to your competitors? Misalignment on any of these categories can be detrimental to your business.

Maximizing program management with a platform solution

Now, how much each organization invests in this role will vary. But one thing is universal: The success of program management is directly connected to the speed and flexibility of your tools.

Disparate systems and legacy technology can only do so much. To really accelerate testing, iteration, and optimization, your organization needs a unified platform.

A platform solution is not a silver bullet, it’s a tool that integrates services across all of your business lines with a level of configuration that maximizes program management.

With modular platform architecture like the Blend Platform, you can launch unique product offerings faster, increase conversion, build loyalty, and offer your bankers and customers access to a financial system that’s simple and state-of-the-art. It may very well be the last piece of technology you’ll ever buy.

Curious to learn more about the flexibility and agility offered by modern banking platforms?

June 9, 2023 in Thought leadership4 min read

Riding the mortgage waves with MarketWise Advisors, Part 1: Operational leverage

Uncover the secrets to closing more loans and gaining more market share in this three-part series.

With consumer demand for efficient, convenient, and intelligent mortgage tech at an all-time high, lenders are under pressure to meet these expectations quickly. Delivering personalized high-tech experiences is becoming fundamental across all industries — mortgage is no different.

While market conditions will always ebb and flow, implementing a mortgage origination platform that scales and aligns to your (and your borrowers’) needs is a huge competitive advantage.

It helps you avoid the time and money wasted from hire-and-fire cycles and creates the operational leverage you need to drive business even in tough industry environments. In this series, we’ll be exploring three areas in which mortgage tech can help to drive more loan production in any market.

Jordan Brown, CEO of MarketWise Advisors will share his expert opinion on the state and future of mortgage technology and how lenders can succeed with the right technology stack. Brown founded MarketWise Advisors in 2005 to help lenders navigate system selection, cost of origination reporting, margin analysis, and technology evaluation.

Read on to see what he says about mortgage tech and operational leverage.

What is operational leverage? 

Operational leverage refers to the ability to increase volume and productivity while holding the number of resources constant. Brown says, “Operational leverage helps you better understand the impact of financial technology on your business and is important to lenders’ stability and bottom line.” Ultimately, it measures the incremental impact of technology on closing more loans.

Why should you focus on operational leverage?

Lenders are either scrambling to hire staff and train them in bull markets or let them go in bear markets, resulting in expensive and disruptive hire-and-fire staffing cycles. “Your mortgage tech can cater to these different environments to create the operational leverage you need,” says Brown. “Faster transactions encourage increased pull-through and decreased overhead costs so you can mitigate the hire-and-fire cycle.”

Platforms like the Blend Mortgage Suite create significant impact. In fact, according to MarketWise Advisors’ 2022 ROI study for Blend, the Mortgage Suite eliminated about a week from the loan lifecycle and nine hours of manual processes — this increased pull-through by 34%.

Not only are you getting borrowers to closing day faster, you’re improving the borrower experience and saving money per file.

How can you create operational leverage? 

Investing in an intelligent, high-tech mortgage origination platform that utilizes automation throughout the process helps intuitively guide borrowers and gets them to closing quickly. “The right mortgage technology will help loan teams increase volume without any changes to staff to support the business,” says Brown. “Then, it’s a matter of sizing your organization for maximum utility.”

So what kind of features help you create operational leverage? Check out just a few of our Mortgage Suite’s Products:

  • Soft credit pulls: Borrowers can find out how much home they can afford before they apply, saving the time you’d spend qualifying each prospect. Additionally, soft credit pulls use the information already given for a full application when they’re ready to move forward and protect borrowers from tri-merge trigger solicitation.
  • Co-pilot guidance: Help borrowers throughout the application process with real-time communication and assistance — whenever and wherever they need. Your borrowers won’t have to wait until the next business day to get answers.
  • LO Toolkit: Instantaneously construct loan scenarios and pricing, generate pre-approval letters, and share any closing costs in a single workspace to quickly deliver a personalized experience to borrowers.
  • Digital closings: Save time and give borrowers and agents flexibility during the most important step of the loan process with remote signings, automated closing documentation, and unbridled communication on the same platform they started the process in.

Creating a mortgage solution for any scenario

As lenders look to improve their mortgage tech, they need to consider their (and consumer) needs of today and tomorrow. Blend is dedicated to providing the innovative product solutions and services that lenders need to be successful in the long term no matter the waves of challenges that confront them.

Keep an eye out for the next part in this series where we continue to discuss the future of mortgage technology and the areas in which lenders need to consider when choosing the right tools for their business.

Interested in learning about the secret to long-term success?

June 6, 2023 in Thought leadership3 min read

Relationships are key to mortgage success (forget interest rates, loan products, and volume)

Discover how the right mortgage tech is the secret to powering the loan officer, borrower, and real estate agent trio.

While there will always be ups and downs to navigate in the housing industry, strong, loyal relationships can stand the test of time. The synergy between the loan officer, borrower, and real estate agent is at the heart of every loan transaction, and nurturing these relationships can majorly benefit you in the long run. Whether your past customers need a pre-approval for a new home or your real estate agent partners come to you with leads, investing time, money, and resources into this trio can return the work you put into it tenfold.

Consequently, the tools you need to enhance the harmony between this trio lay in your mortgage technology. Discover how you can properly maintain these mutually beneficial relationships even beyond closing day with your tech stack.

The trio at the center of your mortgage success

The LO, borrower, and agent all collaborate with and depend on each other throughout the loan process for the same end result: Their success. For the borrower, buying a home is one of the biggest financial decisions they’ll make in their life, and they’re putting their trust into both the LO and agent to guide them through the process efficiently and professionally. LOs not only rely on their borrowers for loan volume but for referrals, positive reviews, and long-term relationships they can rely on in the future. Agents look to LOs to take care of their clients, deliver during the transaction, and provide the expertise that they and their clients need. Agents can also provide leads to LOs and vice versa.

Because this trio is essential to your business’s bottom line, it’s imperative to provide them with the tools they need to flourish and cultivate their relationship with each other. That includes a digital mortgage experience that is intuitive, quick, easy, and personalized to each transaction — and one that can adapt to changing needs as time goes on and the market fluctuates.

When mortgage tech helps provide the human touch

Your relationships will stand the test of time depending on your investment in them. A strong LO, borrower, and agent relationship is a bond cultivated over years of trust, expertise, and loyalty. And the answer to help grow these relationships lies in your mortgage technology.

Technology that benefits all players in this powerful trio is the key to unlocking long-term benefits even when market conditions inevitably go through cyclical changes. But what do each of these individuals need from your tech? Take a sneak peek at one of the sections in our ebook, Power the winning trio with mortgage tech, that discusses this below.

Diagram depicting the LO, borrower, and agent relationship

Invest in your relationships

Tapping into the LO, borrower, and agent relationship is the resource that can make a difference between making or breaking your mortgage goals. But doing so takes patience, time, and investment in technology that helps you create a superior end-to-end digital mortgage experience.

Learn more about the mortgage tech that can cultivate the trio that can help you win in our ebook.

Ready to thrive in any market?