Among next year’s biggest issues are skin-in-the-game proposals, regulatory compliance and cloud computing — according to one mortgage technology provider. Google’s entry into mortgage lead generation is also expected to have a big impact.
Those predictions were made today by loan origination system provider Dorado Corp.
Rob Carpenter, chief technology officer for the San Mateo, Calif.-based company, told MortgageDaily.com in October that it had 18 large customers including Chase. But Dorado was expanding its LOS services to mid-tier originators — those who originate at least 200 loans a month.
Today’s report indicated that a handful of “aggressive” mid-tier banks will use technology and new operational strategies to boost market share next year and become super-regional players “that will force former mid-level players further down the food chain.”
Dorado projects that software as a service will account for 30 percent of originator activity during 2010, a share it calls a “critical mass.” But overall production volume is forecasted to fall as government fundings and refinances decline.
The report said Google’s entry into mortgage lead generation will, however, be among factors mitigating lower originations.
Dorado, which employs 200 people, predicts firms that are prepared for regulatory compliance will steal market share from unprepared companies that face human error as well as penalties, operational disruptions and customer complaints.
The technology firm said skin-in-the-game requirements will improve loan quality, reduce errors and increase transparency on loans that move through the secondary market.
Increased accountability will be among several factors that push originators to also be the servicers on their originations.
