WASHINGTON—What are lenders saying about technology service providers (TSPs)? A new Fannie Mae survey offers some answers.
As part of a recent Fannie Mae Mortgage Lender Sentiment Survey (MLSS) special topic analysis, Fannie Mae economists surveyed senior executives of mortgage lending institutions to better understand how they feel about TSPs, ss they become an increasingly essential part of lenders’ day- to-day operations.
The survey examined what lenders had to say about TSP solutions and applications spanning the entire mortgage life cycle, including those related to point of sale (POS) systems, borrower credit reporting, verification of borrower income / employment / assets (VOI/E/A), and loan origination systems (LOS), among others.
The Key Findings
According to Fannie Mae, key findings include:
- When selecting TSPs, lenders cited cost considerations, functionality, and integration capabilities as the most important criteria. These criteria were also the top three listed in 2016, when we last surveyed lenders on this topic. This time around, however, cost considerations leapfrogged the others to become the most important criterion; in 2016, integration was cited as most important, Fannie Mae said.
- TSP technology offerings for LOS and POS solutions are considered by most lenders as business critical (or “must haves”). Given their criticality, LOS and POS solutions also ranked highest in terms of total TSP investment, which includes headcount and/or budget invested toward implementation and usage.
- The majority of respondents reported that the value they receive from their LOS TSP investments matches or exceeds their expectations, but many believe that there are too few competitors in this space, Fannie Mae said.
- By contrast, lenders see the investment returns on VOI/E/A and credit reporting TSP solutions as delivering the least value relative to expectations.
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