TECHNOLOGY FOR THE MORTGAGE INDUSTRY

Administration of a mortgage includes completion of a mortgage application and verification of all data,  risk scores and assessments for adjudication.

Last year the National Bank of Canada equipped its mobile mortgage sales force with Basis100's HomeBASE application, a mobile platform for mortgage origination.  The application is tied into its own credit scoring system, the Canada Mortgage Housing Corp. (CMHC) and GE Mortgage Insurance Company.³

This type of technology will streamline the mortgage application completion process and improves service to the customer by bringing it to them rather than having them come into the bank branch.

TowerGroup estimates that IT spending on automated mortgage collateral management systems will grow from $33 million in 2003 to $193 million in 2008. This major increase in spending will further streamline the home appraisal process with Automated Valuation Models, cutting the average time for a mortgage lender to complete a home appraisal from 6–10 days currently to 4–7 days by 2008.

Other Canadian companies that provide tools for servicing mortgages include Fincentric whose iWealthview Banking software has functionality for bank business analysts to define products as well as loan application completion process,  payment processing,  and customer account data integration.

 Strategic Information Technologies Inc.   has produced a loan module with similar features that supports all forms of mortgages including residential,  commercial, and construction loans which all have differing payment schemes,  administrative requirements and regulations.

Servicing a mortgage can be costly and even unprofitable particularly when a mortgage goes into default.  Lenders may outsource the servicing to another organization or sell the mortgage altogether to another investor.

The "Technologies for the Mortgage Industry" site was created by Adriana Ieraci, a graduate student at the University of Toronto (Canada).  This site was developed for a graduate course - JCI1503 - Advanced Topics in Computing and Information Systems - as a term project requirement.  Much of the content material and web links presented on this website have been collected from existing sources.  You should not assume that any of this is error-free or that it will be suitable for any particular purpose you may have in mind when using it.  The site is meant to be solely a project in an educational context - and has no other purpose.  The author,  the University of Toronto or any of its divisions, including the course instructors, unequivocally declare that they do not endorse any of the companies or products mentioned or statements made in or referenced on this site.

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