How the Cloud Gives Lenders Greater Control

Increasingly, mortgage lenders are making the cloud a priority in their strategic technology investments and gaining operational efficiencies with new cloud-based technology from leading companies like Amazon (AWS), Google (Google Cloud Platform), and Microsoft ( Azure).

Google Cloud has even gone so far as to launch a service dedicated to the mortgage sector, called Lending DocAI.

The cloud offers far greater levels of capacity, reliability, flexibility, and security for lenders because these established tech companies have the budget and resources to support large development teams of the best and the brightest. developers and experts. Lenders, in turn, benefit from this economy of scale, all for a fraction of the price of a skilled in-house IT team.

Much of the conversation to date has focused on the artificial intelligence and machine learning aspects of cloud-based solutions and their impact on automating loan decision, origination, and processing. loans. By automating everything from routine data entry, to income and employment verifications, to document processing workflows, lenders gain operational efficiencies and cost savings on the origination side , dramatically shortening the time to close while freeing up their staff to focus on more high-value interactions with borrowers.

And just as the benefits of the cloud for borrowers are innumerable, so are the benefits of the back office for lenders. Compared to a software-as-a-service (SaaS) approach, for example, the degree of flexibility and control that the cloud allows is often better suited to the modern mortgage environment. The flaws of SaaS are that while a lender may see outsourcing a system and maintaining it as a benefit, they are also giving up a lot of control over how the technology fits into their business. .

Whether it’s managing the database, when and how to perform backups, or system updates and changes, with cloud-based solutions, the lender retains more control over the technology and how it can be customized to support lender-specific workflows. Cloud technology provides digital agility across the enterprise, so the lender can make their own choices regarding these issues.

Additionally, the pandemic has permanently changed the way many lenders operate operationally and for lenders that have adopted a more remote or hybrid office structure for their staff, the cloud provides a secure, stable, and easily scalable for team members (and even entire departments) to collaborate effectively, regardless of physical location.

From a security perspective, current world events have highlighted the potential risks posed by cyberattacks and major cloud providers are much better equipped to combat this threat and protect lender data hosted on their servers.

As the mortgage industry continues its transition from a refinancing market to a buying market, and the economy as a whole feels the impact of continued supply chain shortages, inflationary pressures and geopolitics world, the key to success for lenders lies in flexibility and adaptability.

Cloud-based systems are no longer a “blue sky” part of the distant future for the mortgage industry. On the contrary, they are already establishing themselves in our modern market. As infrastructures built around cloud-based technology continue to become the norm, lenders who have recognized this reality and have already embraced it will find themselves much better positioned to succeed in today’s housing market and beyond.

Brian Lynch is president of Irvine, Calif. Advantage Systemsa provider of accounting and financial management tools for the mortgage industry.

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