How configurability and APIs can help lenders sow the seeds for success

Interest rates are rising, mortgage originations have slowed, and the market is tightening as home prices and interest rates keep going up. Lenders are forced to do more with less, and it can be tempting to save every dollar when leads are growing scarcer than in recent years. But lean markets can be the perfect time for lenders to better position their business to stand out when borrowers come looking.

Why you should be Leveraging Web-Based APIs

Adding web-based application programming interfaces (APIs) is a proven way for lenders to support innovative ideas that better meet changing market conditions, competitive challenges, and customer demands. Since APIs enable rapid, point-to-point transmission of digital content and capabilities, they can help increase speed to market for new solutions, improve response times, and expedite the completion of loan-related tasks. A loan origination system (LOS) with pre-configured APIs will help lenders save significant time and effort – and drive down costs – by eliminating the need to create one-to-one integrations with vendors and partners.

Why Lenders are Counting on Configurability in a Changing Mortgage Market

Change can come from all sides. Loan originations have fluctuated for a number of reasons such as interest rate changes, consumer demand, global market shifts, disasters, conflicts, and a pandemic. Alongside those factors, borrowers’ expectations are changing as well, and today’s technology needs to be configured to change with them.

Many mid-sized lenders are faced with the realization that their LOS is outdated, difficult to maintain, and unable to scale to accommodate their growing business. No matter the market conditions, lenders need to stay at the head of the pack, and they need technology that can enable them to compete. Scalability is key, as a LOS must handle peak volumes, and also perform optimally when originations fall.

The power of digital is also helping lenders to scale their operations by automating activities involved with loan processing, underwriting and closing. Lenders can leverage artificial intelligence (AI) to handle certain manual aspects of the application process, such as reviewing documents and identifying missing information. A digital approach can also streamline and simplify daily tasks, allowing loan officers to easily follow along with consumers throughout the loan approval process, resulting in faster turn times and higher borrower satisfaction.