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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 40 February 2024 E X P E R T I N S I G H T S Q: How has the warehouse lending process been transformed by cloud-based technology? Berg: First off, cloud-based technology is not necessarily something new. In fact, most software providers in the mortgage industry, whether it's an emerging player or an existing provider, offer cloud-based solutions. The warehouse industry is a very specialized segment of the market but extremely important to the mortgage ecosystem. With the critical role ware- house lenders play, they have traditionally wanted to keep their technology in house. Recently, that thinking has shifted and transforming the technology to cloud- based is helping drive strong relationships. There are plenty of reasons why it's happening now. On-premises software products come with internal processes built around them that are costly to sup- port and maintain. It is also difficult to update client hosted solutions with new features and benefits that warehouse lenders need to operate efficiently and adapt to market shifts. By moving every- thing to the cloud, warehouse lenders require fewer internal IT resources and staff to maintain their systems. Plus, it's much easier for technology providers to update and roll out new versions of their products and introduce new business services, which helps bring more lenders onto the cloud with them. Cloud-based technology also makes it easier for lenders to access new up- dates and the latest authentication meth- odologies to address data security con- cerns, which is extremely difficult when working with premise-based software. When working with client-installed soft- ware, these are much bigger projects and take a lot more time. Overall, cloud tech- nology eases the burden on both vendors and their clients. For vendors, the cloud facilitates a continuous-delivery model and enables them to streamline deploy- ment. For warehouse lenders, it means quicker access to software improvements and new functionalities, which enhances their operational efficiency and security. Q: You mentioned the business services side as well. How has cloud technology impacted business services? Berg: The migration to cloud-based technology is revolutionizing the delivery of business services. For us, being in the cloud makes it much easier and more efficient for us to provide services to our warehouse lending clients in a secure en- vironment and serve as an augmentation of their team. It creates the type of syner- gistic relationship that would have been impossible in a non-cloud environment or while working within the constraints of our clients' on-premises technology. The best thing about cloud technology is that it enables vendors and their clients to collaborate and communicate seam- lessly, which takes productivity up to an entirely new level for both parties. It makes it easier for warehouse lenders to integrate new products and services into their businesses. And it makes it easier for us to pivot more quickly and meet new client demands with greater agility. Ultimately, this enables us to take a more proactive approach to our clients' needs and become a stronger, more valuable partner. Q: Are the updates made to cloud-based technology mostly those that involve security threats? Berg: While security is a crucial aspect of our updates to our cloud solutions, it's not the sole focus. The beauty of cloud MOVING WAREHOUSE LENDING TO CLOUD CUTS COSTS Senior Director of Warehouse and Custodial Technology, SitusAMC Rich Berg Rich Berg is Senior Director of Warehouse and Custodial Technology at SitusAMC, a provider of solutions supporting the complete life cycle of real estate finance. Berg oversees the ProMerit & WLS Warehouse Lending Systems, a warehouse technology solution with more than a 75% share of the warehouse lending market. He has over 20 years of experience in warehouse lending and was Chief Product and Development Officer at MBMS Inc. prior to SitusAMC's acquisition of the company. You can reach Berg at RichardBerg@situsamc.com.