How is the mortgage industry moving away from siloed technology?

“But because of the industry we’re in, especially in servicing of mortgage technology, you’re talking about a deal in the U.S. for at least 15 to 30 years, or at least the average loan, even if it’s refinanced. I think the number is around It’s seven years. So, there are always loans and flights going on, like a lot of flights out there. And it’s hard, hard to change the kind of technology and the providers of those technologies.”

Another example, Sarkar said, is the lack of incentive for mortgage lenders to improve their technology to the point where it meets current standards.

“So they’re running these legacy database and application platforms that sound very old in the rest of the world,” Sarkar added. “It’s much easier to operate in these siloed systems now, with loan transfers for example, people hate it but still use it. So that’s really one of the downsides for the industry, we need some fundamental change and some companies looking at this from the ground up to challenge the status quo in these traditional industries.”

You can watch Sarkar talk about how mortgage companies are moving away from traditional platforms on MPA TV, “How to overcome the ‘don’t fix it if it’s not broke’ mentality in mortgage lending.”

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