possible to properly qualify a borrower. Document management systems also follow the present and growing trend of paperless lending. Many lenders today run paperless operations with e-signing technology and completely online e-mortgages. Working with technology providers and transferring procedures online eliminates the time-consuming, imprecise process of manually reviewing files. The financial industry must commit to making information about lending products streamlined and easy for consumers to understand; therefore, improving the overall customer experience. Implementing the right technology to create efficiencies not only enhances a lender’s business, but also reduces consumer costs and improves their satisfaction, which in turn, increases referrals. The industry has surely learned from the past and while moving slowly, it continues to rebuild. Despite the growing weight of new and forthcoming legislation, the industry can build healthy, stable wholesale and correspondent markets. With the right perspective and the use of new technology in the market third-party originations are not just viable, but they can facilitate the advancement of the wholesale lending market and create more competitive choices for consumers. Cathy Blaszyk is vice president of lender services for ClosingCorp Inc., an independent real estate data and technology company that develops online data services for mortgage lenders, real estate professionals and consumers. She may be reached by phone at (858) 551-1500 or visit ClosingCorp.com.
Wholesale is Part of the Solution ... and Ready to Grow Again By John Walsh
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I see a compelling future for wholesale lending, one that plays a vital role and guarantees that borrowers have access to the most competitive rates and an array of responsible program options. In the absence of wholesale, there is no doubt that consumer choice would be significantly reduced, as the mortgage marketplace would be dominated by a handful of large national lenders. The mortgage broker-toconsumer option helps guarantee healthy competition in the marketplace. Additionally, mortgage brokers provide borrowers with access to a mortgage professional who will act as their
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MORTGAGE PROFESSIONAL MAGAZINE
he mortgage industry has dealt with sweeping changes over the past few years significantly impacting the mortgage broker and wholesale lending. As a result, the wholesale origination model has been largely redefined. Although many brokers and lenders have left the business, the wholesale channel now has a welldefined regulatory framework with higherquality and better-skilled mortgage professionals to advise borrowers on their most important financial decision. This is why I believe the mortgage broker will thrive in the coming years.
partner, trusted advisor Together, we must continand advocate throughout ue to improve, practice the lending process. responsible lending, and Mortgage brokers are advocate for this imporknowledgeable about tant channel and solumultiple products from tion for borrowers. various lenders and can help borrowers navigate John Walsh is president of the myriad of options to Total Mortgage Services LLC, find the loan that is best an expanding mortgage suited to their needs. banker. Walsh founded Wholesale lending plays Total Mortgage Services in a critical role in ensuring 1997 with a customer-cen“In the absence of that the mortgage industry tric approach and a mission wholesale, there is no does not become too of responsible lending. Total doubt that consumer heavily reliant on a select Mortgage Services recently choice would be sigfew large lenders, so that launched TMS Funding, a nificantly reduced, as borrowers will continue to wholesale lending business, the mortgage marhave plenty of mortgage to complement its successful ketplace would be options for any purchase retail lending platform and dominated by a or refinance transaction. offers mortgage brokers and handful of large In the coming years, mortborrowers better service, national lenders.� gage brokers and lenders choice, knowledge and effineed to be committed to ethical behav- ciency in the mortgage lending process. He ior, responsible lending, ongoing training may be reached by phone at (203) 876-2200 and the highest levels of customer service. or visit TotalMortgage.com.
NationalMortgageProfessional.com ILLINOIS
ers and uphold compliance—and technology makes this all possible. Third-party origination risk can be controlled as long as lenders have technology in place to generate efficient, standardized and accurate GFEs that guarantee compliance. Vendors that offer user-friendly, Web-based tools and comprehensive databases can help lenders streamline workflow and access the most precise data available. New systems on the market also offer heightened levels of transparency that are much needed in today’s market. By presenting exact data, originators avoid the need to overinflate values on GFEs, which was initially done to protect the bank, yet makes institutions less competitive in the market. The financial industry is taking the necessary steps to self-police, improve business practices and ethics and enhance consumer education. There are numerous pieces that go into making a quality loan file, and therefore, originators today must use a variety of technologies, including the assistance of compliance software companies, to achieve business objectives and fulfill legislative demands. While the lending industry is notorious for being slow to change, it must adapt to the technology that is essential to run successful and compliant businesses. Many problems were either created or exacerbated by missing paper trails; therefore, automated document management and storage systems are now vital to retain records. Using technology to ensure all documents are kept in a central location provides proof at any point during the process, and well into the future, that the lender did everything