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Conversations about data remain at an all-time high: big data, data
management, data security—the list goes on. It's easy to feel like your
organization should just embrace it all, but there are quite a few nuances,
so it's important to educate yourself before getting started. It's key that
organizations are using data the right way, as the misuse of data and
analytics can lead to misinformed analyses and impact decision-making.
For mortgage lenders or anyone involved
in the homebuying process, it's critical to
understand the role data can and should play
in the mortgage industry, as well as some of the
potential challenges companies could face when
working with data.
THE ROLE OF DATA
To understand where your organization
can implement data solutions, you must first
understand the different ways your data can be
used.
Data is a key factor in understanding the
customer. e data you have on customers helps
give a 360-degree view of who they are. is
view can help you customize your offers, prices,
etc. to best fit their unique, individual needs,
subject to any regulatory limitations that may
exist.
Data also helps lenders and servicers
determine the loss risk on loans. Certain data
points can help determine the probability of
delinquency and potentially default of a loan.
Having the ability to automate this process to
identify risk more easily is a game-changer for
the mortgage industry.
An area where data and analytics tools are
used often is fraud detection. Tech can easily
Feature By: Alex Kudman
THE ROLE OF
DATA IN THE
MORTGAGE
INDUSTRY
To understand where your organization can implement data solutions, you must
first understand the different ways your data can be used.
