PERSON OF THE WEEK: Arguably, the single thing mortgage lenders need most in today’s market is good quality data.
In fact, considering that data impacts almost every single facet of the mortgage process, it’s safe to say that it has become the lifeblood of the industry.
Using data, mortgage lenders are able to predict a borrower’s creditworthiness, detect fraud, accurately value properties, speed processing times, reduce manual errors, streamline document management, improve reporting, enhance compliance and mitigate risk, among a wide range of other goals.
In addition, lenders can use data to predict trends and navigate market uncertainty, the latter of which is gaining considerable attention in light of recent events.
To learn more about the role data plays in helping lenders navigate the current market volatility, MortgageOrb interviewed Joel Rickman, general manager and senior vice president of U.S. mortgage and verification services at Equifax.
Q: Uncertainty is a constant in the mortgage industry – and so is the need for data. What role does data play for lenders who are navigating economic uncertainty?
Rickman: Uncertainty in the mortgage market is nothing new. However, with the combination of rising costs, regulatory ambiguity and shifting consumer behavior, lenders face a new layer of complexity. Reliable, real-time data is not only an operational asset, but offers a stabilizing force and strategic advantage.
Data is becoming a primary tool for lenders to manage pipeline risk, improve decision quality, and anticipate market shifts. With questions swirling around potential GSE policy changes and economic volatility driven by interest rate fluctuations, lenders need tools that help them move quickly while maximizing resources and maintaining accuracy.
As lenders work to reduce loan repurchase risk, they are placing a greater emphasis on data integrity and consistency. One increasingly common strategy is to layer verification checks throughout the mortgage
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