Mortgage Technologies: Paving a Path to Full Automation

July 28, 2003


Boston, MA, USA July 28, 2003

Mortgage Boom Proves Technology's a Bust

Celent predicts almost half of the top 100 US mortgage lenders will deploy new loan origination technologies by the end of 2005.

In a new report entitled " ," Celent analyzes the effects of low interest rates on the mortgage industry and the obvious need for next generation solutions offering greater efficiency, higher levels of integration, and the promise of full business process automation.

Today痴 low interest rates have not only meant a rise in mortgage volumes, but also an increase in processing backlogs and customer complaints by nearly 15%.  "It痴 been a real eye opener for an industry already plagued by time-consuming, paper- and labor-intensive processes, front-end systems that do not communicate efficiently with back-end technologies, and third parties that are often not integrated into the process electronically," said 

Christine Barry, banking analyst at Celent and author of the report. "If ever a sector within the financial services industry were in great need of technology and automation, it would be the mortgage industry."

Though many lenders are dissatisfied with their current systems, it will not be until the inevitable interest rate rise by the end of this year and subsequent volume drop, that lenders will have the time to invest in new technologies imperative to sustaining current margins. Celent forecasts spending will increase at a compound annual growth rate of 66% by the end of 2005.

"Advances in automation are moving vendors and lenders closer to where they want to be," adds Barry "but the truly paperless mortgage is still a distant vision."

A is available online.

of Celent Communications' Retail Banking research service can download the report electronically by clicking on the icon to the left.  Non-members should contact for more information.


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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

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Table of Contents


Boston, MA, USA July 28, 2003

Mortgage Boom  Proves Technology's a Bust

Return to report Abstract


  Market Size and Composition 5
  Technology 9
  Technology Drivers 11
  Online Mortgages 12
  Spending 14
  The Bank 18
  Background 18
  Vendor Selection Process 19
  Deployment 20
  Reorganization 21
  Moving From Functional Automation to Process Automation 21
  Cost 22
  Current Mortgage Process 23
  Channel Strategy 24
  Technology Success 25
  The Big Picture 26
  Security 28
  What's Next for Salem Five 29

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