Mortgage institutions will have to invest in technological upgrade and the training of its employees next year, as 2014 promises to be a tough one for the industry, as reported by Bryan Yurcan in Banktech.com.
Among the challenges they face are new rules from the Consumer Financial Protection Bureau requiring a more thorough, detailed and yet broader kind of documentation. A shrinking market will create a pressure on banks to increase mortgage revenues, thus compelling industry players to find efficient ways to make more money while remaining competitive.
Jay Brinkmann, chief economist for the Mortgage Bankers Association, cautions that there will be a 32 percent reduction rate in loan originators next year, making it imperative for banks to look for more original customers. Loan officers will have to be more aggressive and innovative in approaching potential clients. Training could augment their skills and help them meet this challenge.
E-documents and mobile image capture technology can reduce paperwork in the industry, lessen inaccuracies in data recording and archiving, and overall make the process more efficient. More and more banks are predicted to increase investment in this area for these reasons.
