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62 I N D U S T R Y I N S I G H T / D A V I D W H A R T O N With a new President ushered into the White House, a wave of natural disasters impacting various corners of the nation, and regulatory reform under the microscope in Washington, it'd be an understatement to describe 2017 as a turbulent year. With 2018 on the horizon, the mortgage and servicing industry is taking stock of what's come before and bracing to meet the obstacles—and the opportunities—laying ahead. With a new year on the horizon, DS News spoke to half a dozen industry insiders to ascertain the big picture of what 2018 holds for the industry, how the landscape is changing, and what missteps are better left in the rearview as we move forward. PROBLEMS AND SOLUTIONS Two themes came up repeatedly during our conversations with industry insiders: a focus on the customer and a leveraging of emerging technology as a means to help streamline and improve those customer interactions. "We believe the winners in the next wave of home finance will be customer centric and tech- nology driven," said Kevin Dahlstrom, Chief Marketing Officer, Mr. Cooper. "ese winners are unlikely to be startups or new entrants due to regulatory complexity and the difficulty of achieving scale in this industry." "Tech is back with a vengeance," said Justin Burch, Managing Director, e Collingwood Group. "During the last boom, technologi- cal innovation took a backseat to keeping pace with the demand for mortgages. With steadier footing, innovation is back stronger than ever. I think there are a lot of disruptive technolo- gies on the horizon that will finally bring some much-needed efficiency to the market." Paul Nagai, Principal, Ernst & Young LLP, also agrees that a mix of new technology and bold innovation is the best path forward. "Cus- tomer expectations of speed, transparency, and frictionless interaction have been shaped by an increasingly sophisticated technology environ- ment that will continue to require institutions to evolve and adapt," Nagai said. "To meet growth and efficiency goals, institutions will need to continue to invest in their platforms, enabling digital capabilities and leveraging tools such as analytics and cloud to create sustainable opera- tions." Of course, that's sometimes easier said than done. Not every company has the resources— or the budget—to stage a digital revolution in-house. at's why strategic partnerships will prove crucial for some in 2018. "Banks and mortgage companies are looking at vendors who are proficient in this space of automation, innovation, and outsourcing versus trying to build processes, and technology in-house," said John Vella, Chief Revenue Officer, Altisource. "en, you have other firms that have invested in innovation and technology. ey have built the systems and the process to provide faster developments and integration capabilities." However, seeking out partnerships will make it that much more important to gauge the potential quality of those unions. Kevin Wall, President, First American Mortgage Solutions, cautioned that "a provider may boast that it has the most exciting new offering, but does it also have the wherewithal to effectively support an integration, or modify its product on demand? When picking a reliable partner, consider their financial stability, industry expertise, demon- REBUILDING AND RETHINKING