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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 46 June 2024 F E A T U R E S T O R Y blending both loan origination and servic- ing functions while enhancing the ability to build customers for life. The question is, how? Unlocking Potential Through the Cloud F ortunately, the advent of cloud-based digital technology is reshaping how mortgage banks and credit unions approach this challenge. In fact, it is now possible for lenders to access combined digital LOS and servicing technology through the same cloud environment, which can help streamline their opera- tions with minimal IT or other resource investments. At the core of this transformation is the ability of mortgage bankers to adopt a modern, digital lending platform built within the cloud. Such platforms revolutionize the loan origination process, from the point of sale (POS) to closing, by automating a range of mundane, repeat- able tasks that were traditionally handled by loan officers, loan processors, and un- derwriters. The flexibility of cloud-based technology means that mortgage bankers can tailor the degree of automation to suit their specific needs, regardless of loan channel or their area of origination. And after a loan closes, the journey does not end. Lenders can now deploy digital servicing platforms that can be easily integrated with the LOS and other third parties within the same cloud eco- system. This enables them to smoothly onboard newly originated loans onto their digital servicing platform, ensuring a seamless flow of data capable of stream- lining the entire mortgage lifecycle. More powerfully, mortgage bankers and credit unions can deploy a comprehensive digi- tal strategy that incorporates every stage of the customer journey. The main ingredient behind this transformation is leveraging cloud-native architecture. With cloud-based systems, all POS, underwriting, and servicing software is accessible via all digital devices. They are infinitely scalable as well, allowing lenders to better adjust to the fluctuating workloads that are a hallmark of our industry. Ultimately, this enables lenders to allocate their staff more dynamically and cost-effectively, which is crucial in balancing resources between the origination and servicing sides of their organization. Digital access to these systems and platforms offers another notable advan- tage. These systems can help break down geographic barriers by enabling lenders and their teams to operate remotely while still ensuring compliance with regulatory guidelines and investor requirements. Sales and customer service teams can access these systems from any location, at any time, to ensure critical decisions are made quickly, while maintaining continu- ous communication with borrowers. In essence, new cloud-built digital technology represents a paradigm shift in the capabilities mortgage banks and credit unions must operate their businesses. By integrating origination and servicing into a single, cloud-based ecosystem, these technologies offer mortgage lenders a streamlined, efficient, and flexible approach that aligns with a fluctuating housing market and increasing consumer demands for speed and convenience. The result is not just the ability to do things faster, but doing them smarter, with great- er cohesion across a mortgage lender's entire operation. Bridging the Servicing Gap W hile digital lending platforms have been available for some time, the emergence of cloud-based digital servicing technology is relatively new. By leveraging digital platforms for both orig- ination and servicing, lenders can finally create a seamless bridge between these two sides of their business. Digital servicing platforms built and delivered in the cloud also offer addi- tional benefits, especially when it comes to lowering the costs of servicing loans and improving borrower retention rates. For example, one of the most significant advantages of cloud-built digital servic- ing technology is its ability to automate workflows in key servicing processes such as collecting payments, managing escrow accounts, and handling loan transfers, reconciliations, and reporting. New digital servicing platforms also include advanced document management tools that are piv- otal in reducing manual costs associated with storing, organizing, and retrieving loan documents, and they improve overall productivity. In essence, new cloud- built digital technology represents a paradigm shift in the capabilities mortgage banks and credit unions must operate their businesses.