“Whenever there’s a sort of a volumetric change in the industry, it forces lenders to do something. I was passionate about saying that (his criticism of the industry) because we were so cutting edge at that time, but I think everyone is starting to play a little catch up, and everyone is starting to innovate now,” he said.
For LOs eager to stay ahead of the curve that has meant replacing hitherto adequate but ultimately obsolete manual systems. Focus has now shifted towards what Octaviano describes as a “game of creativity”, with brokers and LOs working out novel ways to engage customers and streamline technology.
“There’s definitely a trend towards an API-centric model,” he said. “Obviously with a lending platform you have to integrate with dozens, if not many dozens, of third-party integrators. Historically, interacting with those third-party services has been a mixed bag, but they’re getting more sophisticated.”
Streamlining the mortgage lending process is crucial when “you have a clock that you have to hit; a 30 or 60-day window,” he stressed. Third-party vendors who are “still living in the past”, using antiquated one-flow systems will effectively be left behind, he warned.
But they are in a minority, judging by Octaviano’s assessment. Lenders he works with aren’t short of good ideas. “The approach to implementing an idea may not be ideal, but at least it’s an idea that we may not have thought of as a technology provider,” he said.