The newest quarterly Mortgage Bankers Performance Report from the Mortgage Bankers Association contains one figure that stands out for all the wrong reasons. The estimated cost to originate a mortgage for an independent mortgage bank was over $10,000 per loan in the first quarter of 2022, increasing for the seventh quarter in a row and shattering prior report records.

It has been observed that lenders continually re-enter, verify, and validate data at several checkpoints during the mortgage lifecycle, which is a significant contributor to the high non-sales costs. This is so because of the many parties involved in a transaction, each with its unique criteria and lacking trust in obtained data from partners.

The struggle to digitize mortgages goes beyond simply being able to sign documents online. Restoring consumer confidence in data among market participants is the solution to this issue. Additionally, the new MISMO SMART Doc Version 3 Verifiable Profile is a crucial tool for rebuilding confidence. This specification not only has the anticipated SMART attributes of security, management, achievability, retrievability, and transferability but also generates a genuine electronic record with reliable data.

The industry can now provide feedback and comments on this new resource, and a final version will be released after feedback has been considered. Charles Epperson, Chief Technology Officer at Evolve Mortgage Services, appreciates that the SMART Doc Version 3 Verifiable Profile definition generates a true electronic record instead of an electronic document image. “Getting it right from the beginning, completing everything electronically, gives you the biggest rise with the Version 3 SMART Doc verifiable profile,” claims Epperson. To read more on how lenders can combat the high level of origination costs, click here.

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Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid.

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