Mortgage Software Solutions Blog

Why Cyber Security Comes First in the Mortgage Software Market

Why Cyber Security Comes First in the Mortgage Software Market

Equally important: physical security and cyber security.

The finance industry’s data-handling platforms have a clear bulls-eye on them.

The U.S. mortgage industry supply chain is considered a “massive target for information security breaches.” In fact, from 2015 to 2016 the number of data breaches in the United States went up by 40%.

Still, most mortgage lenders sidestep cyber security by shopping for software the old-fashioned way.

Functionality across platforms is comparable, but security is where the largest variation exists amongst current technology offerings. The regulatory and litigation atmosphere surrounding data breaches in 2018 is such that the best mortgage software addresses cyber security first and foremost.

Here is how the best mortgage software on the market is focused on security frameworks first.

The Weakest Link

Poor cyber security has a financial and regulatory impact. This, combined with the negative press of recent international breaches, is what the modern financial institution wants to avoid.

Though large institutions have tight security, an increase in automation and “digital mortgage” online customer interactions means that high-tech services are being farmed out to third-party vendors. Tools like business intelligence (BI) and machine learning (ML) also means data transfer within the industry is nearly constant.

Homebuyer information is especially ripe for hackers because it includes secondary digital assets like credit data.

Though big banks are heavily invested in keeping this data safe, the sharing of borrower data to smaller vendors has caused a disruption in the security systems. The immature security of these third-party service providers has created a weak link in a previously well-fortified industry.

Who is Responsible?

Though it seems like the third-party vendor is the one who should catch up to security norms, the tech newcomers are not being held responsible.

New legislation in the US holds financial institutions responsible for the security level of their third-party vendors—no matter where the data or breach originated from. When a smaller vendor experiences a security event, it is the large mortgage company that is on the hook.

Even if the company avoids catching the eye of regulators, cases of mishandled customer data have executed litigation of $201+ per recorded liability.

Cyber Security Solutions

The solution is to rein in weak spots by employing cyber security technology that goes beyond the traditional server model. It should cover gateways, third-party access, and employ strategies that keep an eye on common but unsafe tech-related practices.

A tech developer called ABT offers a cloud-based platform called MortgageWorkSpace that ticks the right boxes.

ABT works exclusively with the mortgage industry to develop software solutions for lenders and third-party financial institutions in the home buying industry. With the functionality of the lending platforms in place, ABT leads mortgage tech by focusing squarely on cutting-edge cyber security.

Above all, MortgageWorkSpace provides a secure gateway to access lending data. It employs multi-factor authentication and monitors system email use to fend off phishing as well.

Despite increased accountability, mortgage lenders can keep the company name and customers safe by shopping for a platform that puts security first.

Advanced Cyber Security Features

With market demand high, on-board security features distinguish better platforms from those that add build-out security capabilities as an afterthought.

ABT has a built-in consumer protection feature called Remote Desktop which gives mortgage lending employees a cloud-based real-time file management system. Offering functionality to the user, this feature actually prevents the storage of data on local PCs. This Dropbox-like feature means that the employee’s desktop is not only updateable from anywhere, but that files containing sensitive information don’t get downloaded out of the system where security is weakest.

Lenders shopping for top mortgage software should keep an eye out for features like the Remote Desktop that combine user experience with security in a way that is seamless.

Developers who have security at the forefront of their business model will also provide crucial non-tech extras for lenders.

ABT gives clients a written information security policy that outlines the software’s parameters and security compliance rules. This type of documentation may have been overkill in the past, but is increasingly required by state and federal law for legal operations in the U.S.

Though most software shoppers understandably look at usability first, the consumer financial sector increasingly puts cyber security front and center.

Mortgage broker software is no exception. Platforms should have a full range of built-in cyber security solutions, usability features that incorporate digital protection without being clunky, and advanced features that provide extended protection as regulations become more stringent.

As a target for hackers and a trend of increasing legal accountability, cyber security is now the main consideration in the mortgage software market.

Check out the full range of ABT’s security-driven mortgage business products on our website or contact us to learn more.

Image: Unsplash

Topics: Hosted Software options Mortgage Servicing in the Cloud mobile security mobile device security email security data security mortgage company security financial data security social networking safety phishing multi-factor authentication Business Intelligence cybersecurity mortgage documents security data warehousing

Who's making your mortgage software decisions?

I was recently ran into someone who's job title was "Software Consultant".  "Why would someone need a software consultant?" I asked, "Doesn't that normally fall on the IT department?".  I was told that in most cases it did.  But in some cases this may not be the best way to bring on critical software for an organizations. The following list gives a few reasons why a Software Consultant may help a company make better software decisions:Group of people meeting

  • Software solution requirements needed by the "business group" have not been properly analyzed. Not enough details or user expectations were uncovered in order to make a decision. Perhaps due to the next reason.
  • The IT team does not have the "bandwidth" to devote appropriate time to the project.  They are so busy with current projects and demands that analyzing software is not the priority.
  • There may be a disconnect between the end users desire for specific business processes and the IT team's "system environment" constraints.
  • The IT department's desire for retaining control may limit their objectivity in looking at "hosted" software solutions
  • In some cases there are communication issues between departments ("trust" between departments may not be part of the corporate culture), while hopefully this is not the case with your company, this type of situation does exist.

The group this individual works for, starts their process by performing a very detailed analysis of expectations expected from the software.  This task involves all of individuals who will be working with the software (users and IT).  A list is made. gathering user expectations and process vision.  With this information they objectively analyze software options available in the marketplace.  This list along with the reasons for their inclusion are presented to a steering committee. They schedule demo's of each software and help with the evaluation process.  They will then help facilitate the decision process.  

This discussion was enlightening for me.  Our company is vendor neutral and do not suggest mortgage software solutions.  In most cases, our prospects/clients have usually already decided what mortgage software they will be using.   If they are still looking, I can suggest barriers they may be hitting and provide tactics that will help them make a more informed decision.

How do you choose your business software tools? 

  • Give the project to IT?
  • Strictly a cost decision?
  • Always pick the industry leader?
  • Suggestions from peers?
Topics: Hosted Software decisions Picking Software Hosted Software options Hosted Software Hosted Software issues On Demand Software