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77 but which are critical to understand. Some regulations also may not allow companies to make decisions based on certain data points. It's key for lender/servicers—or anyone—to know how they can and cannot use it. While the list of the applications of data and analytics is seemingly endless, there are a few limitations that are important to be aware of and ensure the right mitigation strategy. DATA IN THE PANDEMIC ough challenges can arise, that should not scare anyone off from using data to their advantage. During the pandemic, for example, the effective use of data helped mortgage industry players evaluate the impact to their key metrics and helped them better prepare for the future. ere were so many unusual patterns in the mortgage industry during this time: high unemployment, high delinquency rates, home price surges, overwhelming demand, and increased demand for virtual interactions rather than in-person meetings. Data and analytics helped companies respond and adapt faster during these challenging times. Since there was almost no precedent to this situation, it was important to utilize data and technology to help manage the processes in play. For example, when evaluating the probabilities of a loan's default, predicting which loan variables play a part in that are important in determining risk. Self- employment became a more differentiated performance loan variable during COVID-19 due to the impact on small businesses. Another important factor that arose from the unusual home price surges in 2020 and 2021 is the amount of equity the borrowers have in the house. It increased tremendously and therefore, decreased the chance of foreclosure. Using data and analytics to identify these factors helped drive better insights and support business decisions. ere are many ways the mortgage industry embraced digital solutions throughout the pandemic and possibly forever changed the way it operates. Digital technology fueled automation and streamlined mortgage processes like never before. Examples of digitizing the mortgage process include integrated solutions to have a single digital platform for obtaining mortgage approvals, mortgage insurance, appraisals, and customer updates. Some of the benefits include an easier application process, fewer in-person interactions, and quicker close times. One of the primary reasons the mortgage industry was able to adapt to changing times and experience record volumes in 2020 and 2021 is the effort geared toward innovation enabled by digital solutions. Also, pandemic or not, it's obvious that digitizing mortgage processes is here to stay due to customer demand of having a similar digital experience and the same convenience they enjoy outside of the mortgage industry. Data can provide a tremendous amount of value to an organization, when used the right way. By taking the time to understand it, its use cases and its challenges, your organization will have the tools it needs to implement solutions, drive thoughtful decision making, and ultimately differentiate the business through this competitive advantage. Alex Kudman is the Head of Enterprise Analytics at Enact Mortgage Insurance (formerly Genworth Mortgage Insurance). Kudman leads several functional areas to develop and execute an enterprise strategy for data analytics, data management, AI/ML implementation, and data-driven decisions across the organization. e statements provided are the opinions of Alex Kudman and do not reflect the views of Enact or its management. During the pandemic, the effective use of data helped mortgage industry players evaluate the impact to their key metrics and helped them better prepare for the future.