Mortgage Software Solutions Blog

Cloud Computing and the Hesitant Mortgage Company

cloud computingCloud computing can empower the mortgage industry by streamlining processes, reducing errors, and improving efficiency. However, some institutions are still a bit hesitant, when it comes to integrating Cloud computing into their strategies.

Cloud Security Alliance has recently released a survey observing the intersectionality of Cloud computing technologies and financial services. The survey discovered that about 61 percent of respondents believed that the Cloud is still in its formative stages, with only a relatively small number of respondents planning to include Cloud computing altogether. None of the respondents noted that they are willing to entrust major applications and systems to a public cloud.

Interestingly enough, the survey puts a spotlight on how financial services, including the mortgage industry, are progressing in terms of including Cloud technology and providers into their repertoire.

The Public Cloud Is Not Enough

When it comes to the mortgage industry, these businesses require more than what a public Cloud can offer. 80 percent of financial services want increased transparency when it comes to auditing controls from Cloud services, especially since the Cloud will inadvertently deal with sensitive and private information.

Encryption, security, and flexibility are real concerns for financial institutions, as respondents indicated that infrastructure capacity was a top concern. Mortgage companies want to work with Cloud providers that are keen to comply with banking regulations, protection protocols, and national regulations. The Cloud has made solid strides in the industry, with the capabilities of Cloud technology improving efficiency on an exponential basis.

Here's how Cloud computing and the mortgage industry can work together, underlining the importance of mortgage professionals and their customers.

Why Use a Mortgage Vertical Cloud Provider?

The banking standard of information security now applies to all mortgage companies. A mortgage vertical cloud provider must have its regulatory compliance certifications. As a result, you are better protected with a certified mortgage vertical cloud provider.

A mortgage vertical cloud provider understands your mortgage business. A mortgage vertical cloud provider can protect your servers, computer desktops, software applications, and even the way your browser accesses the internet against new cybersecurity threats.  

It is time to get serious about information security.  Fannie Mae’s CIO, Anthony Johnson, during a panel discussion at the Mortgage Bankers Association (MBA) annual 2015 conference said, ““In my view, there is only one thing that could absolutely destroy a company overnight, and that is [a lack of] cybersecurity.”

The Cloud Is Highly Accessible

Cloud services can be accessed from a tablet, smartphone, and PC, as well as from different operating systems. Mortgage Cloud providers also have specific mortgage industry applications that work with the Cloud, further expanding the influence and capabilities of the mortgage professional. Cloud integration works with data warehousing to bring mortgage software platforms together seamlessly.

Additionally, Cloud computing has empowered online business and allowed mortgage professionals from different niches to be able to engage customers remotely and securely store their information in the Cloud. When implemented correctly, the Cloud can mediate errors and complete tasks, like credit stipulation, with the click of a button.

Mortgage applications and Cloud computing also reinforce trust with customers. In the study noted above, 18 percent of all smartphone owners note that they are willing to apply for certain financial products right through the convenience of their mobile devices. This is particularly important for future-proofing a mortgage company, as millennials prefer companies and brands that have a strong presence in the digital sphere. Generation Y is a generation that is particularly open to working with mortgage companies and cloud computing, even willing to apply for a home loan right from their personal device. Mortgage Cloud applications also allow the mortgage industry to:

  • Close Deals Faster

    Required documents can be easily accessed with Cloud computing, with apps being able to help mortgage professionals conceptualize when they should initiate with certain applicants. Cloud computing can notify when it is appropriate to reach out to a customer or when to upsell certain services.

  • Mortgage Applications Underlined the Importance of Customer Service 

    Being able to respond quickly and efficiently to a notification is a hallmark of a competent mortgage loan officer. In today's competitive market, loan officers need to be able to access information quickly, especially in a market driven by commodity and cutthroat tactics.

To learn more about how the right mortgage cloud provider can help you execute with technology, contact us today.

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Topics: Cloud Services ABT Mortgage Servicing in the Cloud Cloud Mortgage Servicing Cloud Computing Mortgage Cloud Services

Mortgage Loan Servicing now in the cloud

More and more mortgage lenders are utilizing software tools including loan servicing through cloud solutions, not just in an effort to save overhead, but also to streamline their current infrastructure. There are multiple reasons to upgrade to cloud-based mortgage loan servicing over in-house servicing. 

Changing Times

 Many IT professionals encourage the proactive switch to cloud-based applications, because so many upcoming software upgrades are designed for use only in the cloud. The bulk of research and development efforts also are turning toward the ultimate goal of mortgage loan servicing now in the cloud. Ever-changing technology puts an increased burden of demand on credit unions to keep up through continual software and hardware upgrades.

Why the cloud?

Software companies love cloud-based hosting because it’s much easier for them to license and release new products, as well as provide updates and upgrades to existing ones. NewerUsing Software in the Cloud developers are now providing software exclusively for the cloud rather than offering in-house options. Credit unions benefit from increased ease of access to the newest technologies while shifting some of the workload away from their existing IT staff. The need for constant upgrades is similarly removed. Credit unions are also saved from compliance concerns, because that responsibility falls to their vendors instead.

Ideal for small credit unions                                  

 Small credit unions are already struggling to find and maintain trained personnel for the high-stress demands necessary for efficient mortgage servicing. Switching to mortgage loan servicing now in the cloud frees up valuable resources, removing the strain of keeping up in-house equipment and training upgrades for IT personnel. In the past, hardware advances have changed so quickly as to make it nearly impossible to keep up without regular system overhauls, which can be quite costly. Cloud-based hosting removes that burden from the credit unions themselves, allowing for their priority to return instead to increased customer focus.

Staying ahead of the curve

Because cloud technology is so new and its popularity is just now beginning to grow, credit unions who switch to cloud-based hosting sooner will stand above their competition. In addition to making more efficient use of their resources, they’ll also be able to take fullCloud Mortgage Software from ABT advantage of the increased time-to-market afforded by cloud hosting. The capability of offering multiple integrated services is also increased when moving to cloud-based mortgage servicing.

Safe and secure

Cloud-based hosting services for mortgage loan service providers are more likely and able to use cutting edge security precautions using the newest technology. Older in-house systems remain more vulnerable, with an increased risk for outages. Smaller credit unions may not have the staff or know-how needed to provide and maintain compliant, secure systems. Many security experts suggest that mortgage loan servicing now in the cloud provides increased safety advantages over in-house servicing.

Topics: Mortgage Servicing in the Cloud Cloud Mortgage Servicing