7 Technology Advantages IMBs Need Now

It’s no secret that times are challenging for independent mortgage banks (IMBs). Mortgage loan volume for Q2 2023 was down 56% from the same period last year, according to ATTOM, and down 70% from its peak in 2020, a 20-year low.

Interest rates have gone from a low of less than 3% in 2012 to hovering around 7% today. The good news is business is predicted to pick up. The Mortgage Bankers Association’s baseline forecast is for mortgage rates to end 2024 at 6.1% and reach 5.5% at the end of 2025.

As the mortgage industry continues to evolve, it’s clear the top IMBs are staying ahead of the curve with cutting-edge mortgage technology. IMBs face unique challenges, and their technology solutions should be agile to their business needs.  

As the market picks up and IMBs strive to position themselves for growth, selecting the right technology can be nuanced. Here are seven things IMBs should keep top of mind when considering new mortgage tech.

1. Streamlined Processes

Automation is a game-changer for IMBs seeking to streamline their processes. Such automation significantly enhances the lending process, enabling IMBs to move away from manual processing and route form and data automatically. This reduces the complexity of processing applications, cuts down on potential errors, and ensures customers receive the best customer experience (CX) possible. 

LenderLogix's tech stack incorporates advanced automation features, reducing manual workload and accelerating the loan origination process. This not only boosts efficiency but also enhances the overall customer experience from application to post-closing.

2. Scalability for Growth

IMBs often experience fluctuations in loan volume. According to the Mortgage Bankers Association, here’s how much just the purchase business has shifted from 2020 to 2024:

• 2020: $3.8 trillion
• 2021: $4.51 trillion
• 2022: $2.75 trillion
• 2023: $1.64 trillion (forecasted)
• 2024: $1.95 trillion (forecasted)

LenderLogix's tech stack is designed with scalability in mind, accommodating the growth trajectory of IMBs. Whether experiencing rapid expansion or managing a steady flow of loans, LenderLogix empowers IMBs to scale their operations efficiently with unit economics that make sense regardless of macro-economic conditions.

3. User-Friendly Internal and Customer-facing Interfaces

Efficiency for borrowers and employees is paramount in the fast-paced world of mortgage banking. The typical digital banking customer will expect an Amazon or Netflix level of service, providing frictionless online banking services they can use anytime and anywhere with their choice of device, such as a smartphone or laptop. And why would your employees deserve anything less? Your interface should be intuitive and help them to keep the mortgage process moving forward.

LenderLogix prioritizes user experience, offering an intuitive interface that simplifies complex processes across the entire product line. IMB staff can navigate the platform seamlessly, enhancing productivity and allowing them to focus on delivering exceptional service to their clients. Customers can use LenderLogix technology to complete and submit applications and produce on-demand pre-approval letters (and so can their real estate professional!).

4. Integration Capabilities for a Seamless Workflow

IMBs rely on a multitude of tools for various aspects of their operations, but most integrate with the core loan origination system. This reliance mandates that new technology under consideration for your tech stack, such as a point-of-sale system, seamlessly integrates with leading systems and certainly those already in use by the IMB for appraisal, credit, doc prep, pricing, verifications and much more. 

This integration ensures the technologies will work together so you gain the benefits of streamlining workflows, enhancing operational efficiency and amplifying the return on investment of existing technology investments. 

LenderLogix's tech stack is designed with robust integration capabilities, ensuring seamless connectivity with IMB's loan origination system. This integration streamlines workflows, minimizes manual data entry, and enhances overall operational efficiency.

5. Customization for Diverse Business Models

As the mortgage industry slowed from explosive origination volume in 2020 and 2021, consolidation activity has ramped up. As a result, merger and acquisition activity has been booming. Forty-two transactions closed during 2022, according to Stratmor Group, up from a previous record of 33 in 2018. That number is expected to grow even further, with Stratmor predicting 60 transactions by the end of 2023.

For some IMBs, this shifting landscape requires being nimble and flexible in how they do business and how they present themselves to investors and customers. LenderLogix understands that one size does not fit all and offers a customizable tech stack that supports branding at the branch or 'organization' level. This flexibility allows IMBs to tailor the technology to their specific needs and supports centralized, net branch, and joint venture models, ensuring optimal performance, efficiency and customer experience.

6. Compliance as a Cornerstone

The mortgage industry is governed by a complex web of regulations, some from investors like Fannie Mae and Freddie Mac and others from oversight agencies, and IMBs must navigate this landscape with precision. 

LenderLogix is committed to staying abreast of regulatory changes, providing IMBs with a technology solution that aligns seamlessly with compliance requirements. This proactive approach minimizes risks and ensures adherence to industry standards.

7. Data Security and Privacy

Given the nature of fee collection without a technology solution, loan officers can easily fall subject to breaches in security and privacy. For example, without a tech solution, the process is often a loan officer collecting payment information from the borrower over the phone and jotting the information down on a sticky note – not a secure process nor a great customer experience. 

This scenario creates a high-security risk with a lot at stake. In the event of a data breach, not only is there a monetary loss, but IMB's reputation with customers, business partners, and investors is affected. 
LenderLogix prioritizes data security, implementing state-of-the-art measures to safeguard client information and has built-in processes to collect upfront fees in an efficient and safe manner. Loan officers can send borrowers a secure payment link in their LOS with a click of a button. 

LenderLogix is Your Tech Partner for All Markets

We know IMBs face a unique set of challenges in the competitive mortgage landscape. LenderLogix offers a tech stack that addresses the nuances specific to IMBs. 

With a focus on customization, compliance, scalability, user-friendliness, integration, data security, and automation, LenderLogix stands out as the ideal partner for IMBs looking to elevate their technological capabilities.

Empower your Independent Mortgage Bank with LenderLogix's state-of-the-art technology and stay ahead of the curve in the ever-evolving mortgage industry. Contact us to learn more about our solutions.

Still not convinced? Read what other IMBs have to say about LenderLogix in our case studies.