Trevor J. Gauthier is president and chief operating officer
of Mortgage Cadence. He leads the development and
execution of the company’s strategies, while ensuring alignment between long-term vision and dedication to providing
superior customer experience. Gauthier’s previous roles at
Mortgage Cadence included leading global software sales,
account management, professional services and marketing
teams, with a focus on developing and executing strategic
approaches to maximize sales activity and returns on
investment. Reach Gauthier at (303) 991-8200.
The Year of Online Lending
The time for mortgage-loan automation has come at last, again
By Trevor J. Gauthier
Back before online lending caught on, borrowers had to spend an anxious and opaque 60 days or more as their loan was poked, prodded and examined for even the
slightest hint of a problem before learning — often at
the last minute — whether they could actually move
into their dream home. This process wasn’t much
better for mortgage companies, either.
Fifteen years ago, technology was barely applied to,
let alone integrated into, the mortgage process. The
manual process required to originate a single loan
was expensive, time-consuming and required a lot of
natural resources and physical storage space. Industry
veterans will not soon forget the boxes and boxes of
mortgage files scattered everywhere.
Things are better today. Mortgage companies
have access to excellent, innovative technology. Best-in-class borrower-facing web tools not only allow borrowers to self-originate, but they also lead to higher
customer satisfaction because of real-time status updates, easy document uploading and faster communication. While things are much better than they were,
the mortgage industry remains far behind where it
could be in terms of automation and customer service.
Tap here, close now
A funny thing happened on the way to 2017. In the
early 2000s, a group of lenders partnered to pioneer
online lending. This was revolutionary at the time.
Borrowers eagerly supplied personal financial information online for the promise of practically immediate
credit approval. They could — for the first time — check
the status of their loans online, which removed some
of the opaqueness of the origination process.
Borrowers were happy and lenders were ecstatic.
For the first time, true automation made a difference
in efficiency, which in turn lowered production costs.
Things, in terms of mortgage nirvana, were looking up. Then along came the housing crisis and the
subsequent increase in complexity of the regulatory
environment, which wiped out all advances in efficiency and added significantly to processing times and
Here’s the funny part: Never in history has the mortgage process been more prescriptive. With so little