A Mile Wide and an Inch Deep

For years, we mortgage vendors have wrestled with integrating our products with other systems so that data will move along the pipeline through each of the functions with as little data re-entry as possible.  “Soup To Nuts” was the eventual cry of the Mortgage Lender.  After all, for years, each software product in our industry was constructed without any overall rules with regard to the data naming conventions.  It was truly the Tower of Babel.  Each office was a cesspool of disparate data.  But who wants to live in a cesspool?

There are so many moving parts, so many needs, so many business models, mortgage technology software is both the problem and the solution.  Does one system “have it all”?  And if there were, is that wise?  Can a technology vendor who promises the moon and the stars really provide all the parts?  With the highest quality standards?  In the most efficient timeframe? With the maximum vulnerability? With the best client care when they need it?  The answer is not bloody likely!

Of course, that’s the whole point of MISMO:  If every system uses the same standard, each of the functions can be strung together to produce the highest quality loans. Now THAT’S Best of Breed technology!.

How does this offer “true competitive advantage” to a lender?  Think about it:   The software should never direct the business; It’s the other way around!  The needs of the business should be fully supported by the software.  The software is there to do a job more efficiently than it could be done through a manual process.  Reduction in error, streamlined processes for faster turnaround times and expanded product offering are outcomes of a wise deployment of technology.  What do you offer your clients?  That’s a different set of building blocks for every lender.  In my experience, there are no two lenders who do things the same way, and certainly not with the same resources, talent and operational layout.

Think of it like Lego.  Snap together the parts that you will fit and build your desired outcome.  Look for the MISMO compliance statement from your technology vendors and build what you need by considering your organization first.  Put the parts together that best support where you are now and where you’re trying to be in 3-5 years.  Technology is going to change quite a bit by then and what you do today may not be relevant in 5 years.  Don’t just go for the shiny!  Don’t be fooled by the “all in one” monster offering.  You limit your flexibility immensely until they OWN you.

Consider the following:  How wise is it, really, to put all your eggs in one basket?  Furthermore, a vendor who is a mile wide can only be an inch deep.  Where’s the true expertise in that?    How good could the service possibly be?  Knit one, pearl two!  You want a vendor who sticks to his (or in my case, “her”!) knitting, with focus and dedication:  an expert in their subject matter.

It’s important not to let your organization become personally monopolized.  If you want a great company, pick great vendors who “play well together”.  Companies like Apple and Salesforce are doing it to the max with their apps.  Each software application follows the standard and snaps together to create an overall individual picture.  That’s the real name of the game.

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