Who's In Charge of Business Technology?

Have you ever wondered why technology projects for mortgage companies often fail? With technology at our fingertips today, it’s becoming more important than ever before to evolve. Why do we seem so slow to adopt new technologies? Uneasiness with using technology, especially when implementation may disrupt daily processes, seems to be the most likely culprit. Here’s an excerpt from our white paper, Why Technology is so Difficult, on how to master and apply technology successfully.

“Principle #5 - It's NOT an IT project.

A by-product of past frustrations, many executives default to IT on every project – leaving IT to define and discover the effectiveness of technology either built or bought. This results in an impossible circumstance for the leader of IT, as thesis deference and deflection of business definitions leave them to interpret and assume, rarely resulting in success. Many IT leaders have succumbed to dismissal simply because they are perceived to have not performed, when in reality they never have a chance to succeed from the beginning.

This approach also makes it impossible for a business to innovate, as the challenge of vision and betterment falls victim to deference to IT leaders. The result is clearly missed opportunities and chances for business to gain and sustain competitive advantage.

Even when a business has the highest performing IT leader with the best of knowledge of the business, conflict and misunderstanding will result in perceived failure. The business simply cannot defer the definition of vision, detail, objectives, or expectations. The lack of definition of a process would be equivalent to no blueprints while building a house. The end result is not getting what you thought you were getting and poor construction of the end product.

Do not defer to IT. Instead, create a team that equally represents the different areas of your organization and allow them to lead the project to ensure business objectives are being met. The role of IT is to ensure technology is operational. It’s the organization’s responsibility to ensure the technology is functional. Technology should be an enabler for positive change within the business. Stay focused on the business objectives you want to achieve, such as a percentage reduction in labor, time, or an improvement in customer service.”

This Principle couldn’t be more accurate. IT does not drive strategy, nor should it. Pushing total responsibility for an implementation project to the IT department without clear direction on business objectives not only leaves them confused, but it also dooms the project for failure because you’ve taken executive drive for the project out of the equation. See your project through both the planning and implementation phases to ensure that the project meets its intended objectives. Don’t let your competitors pass you by because your business can’t find a way to adopt technology.

To learn more about all 10 Principles, download our white paper, Why Technology is so Difficult, here.  

Objections as Obstacles or Opportunities

Technology and the mortgage industry have been slow to combine throughout the years. Mainly because no one is quite sure how to marry the two in harmony, with little disruption to the daily workflow. We’re here breaking down how to successfully fulfill a technology project with 10 Key Principles that any business can follow. Here’s an excerpt from the white paper, Why Technology is so Difficult, on Principle #1 to mastering and applying technology successfully.

“Principle #1 – It all starts and finishes with the Business

Every technology project – whether purchased or built – must start with clear business objectives. These are the expectations of the company that, if achieved, would result in reduced expenses, service improvement, or revenue growth. As an executive, you must set these objectives as the target for a project team to achieve. This and this alone defines success or failure in every project and gives both sides of the equation the target to rally around and come together to achieve.

Often, the operations side of the project will point out a valid obstacle which, rather than posing a simple challenge to overcome, becomes the reason to not do anything. The simple fact is nothing is impossible, and the leadership of each company should not tolerate this “Devil’s Advocate” approach to business objectives (i.e., allowing an objection based on fear to be the reason for inaction). Condition your teams to view these objections as the very product tasks they must overcome and not an excuse to stop taking action for the benefit of the company.

Don’t let business objections become the obstacle for taking action. Instead, view business objection as a challenge to be overcome. Each challenge and objection is something the team must figure out and should not be the reason for stopping.”

It’s clear that without a determined goal or plan for business applications, technology goes nowhere. Perhaps the most significant takeaway from this excerpt is that a project worth starting is one worth finishing, even if obstacles occur. Can you think of a time when you threw an idea out altogether simply because you hit a roadblock? It happens all the time and absolutely stifles innovation. Don’t let your company be an organization where technology misses the mark. Following all 10 of these Principles will allow your business to master the seamless implementation of any technology project.

To learn more about all 10 Principles, download the white paper, Why Technology is so Difficult, here.  

Technology for Today & Tomorrow

How can your business harness technology and its benefits, and how do you know what to look for in a technology project? A considerable portion of the mortgage process is still done on paper, and not much has changed in the last 50 years. Some have attempted to experiment with technology by implementing small tech projects here and there, but oftentimes the technology becomes a spot solution for the issue you’re experiencing today, with no capability to grow. What happens when the market changes, regulations become enforced and new issues arise? We’re here breaking down how to successfully fulfill a technology project with 10 Key Principles that any business can follow. Here’s an excerpt from the white paper, Why Technology is so Difficult, on Principle #7 to mastering and applying technology successfully.

“Principle #7 - Change is the only constant. Be a visionary.

Technology has a very short shelf life, so choose based on vision and evolution. When purchasing a product, you must not only look at the needs of today but also at how the product will evolve into the future and solve the issues of tomorrow. A perfect example is the massive change occurring in the mortgage industry. You need a solution which covers the paper needs of today but also evolves and supports a transition to digital closings. Don’t choose a spot solution. Look for the evolutionary path of the business and anticipate your needs 6, 12, 24, and 60 months out. In doing so, you put your
company in a much better position for success and will ultimately spend less money.”

This Principle is so key to the mortgage industry because, without a long-term vision, your business is likely to struggle with seeing the true benefits of technology. The easiest technology to adopt for today’s issues is often not the same solution for the issues to come. In fact, most of the spot-solution technology currently in the industry today can easily become obsolete by something better, faster and cheaper, leaving you to endure the purchasing-implementation-training cycle over and over again. What a headache! Of course, no one expects you to have all the answers about exactly what you’ll need three years from now, but you need to have a vision, direction, and most importantly, the mindset to choose a technology from the start that can evolve with your needs and demands. That’s much easier and cheaper than all these different spot solutions, right? Following all 10 of these Principles will allow your organization to master the seamless implementation of any technology project.

To learn more about all 10 Principles, download our white paper, Why Technology is so Difficult, here.

The Root Causes of Technology Failures

It seems that the mortgage industry has a love/hate relationship with technology. Mortgage professionals are quick to tout the benefits of technology, but when it comes to brass tacks, they are wary of implementing new technologies, mainly because these projects don’t have a successful track record. As a result, new technology has been slowly adopted in the form of spot solutions within the mortgage process, these implementations are often executed ineffectively. Thus, many technology projects fail during execution or shortly after. But why?

In general, implementation failures can be attributed to one of the following:

• Poor or incomplete specification of requirements
• Assumptions by technologists on the meaning of the requirements

Creating a concrete definition of the requirements for a tech implementation project and monitoring that project based on those defined requirements is imperative. Try building a house with no blueprints and only half the necessary materials. It’s not going to turn out well.

After determining concrete requirements, many projects are handed off to the IT department; it’s an IT project after all, right? This is where these kinds of projects can really go off the rails.

Oftentimes, the IT department wasn’t involved in the decision-making process, providing them with little to no insight into the strategy behind the implementation. Without this critical information, IT has little choice but to define a successful implementation as “software up-and-running” versus “effectiveness at achieving the technology’s intended purpose.” It’s then only a matter of time until the project becomes dismissed because it couldn’t perform, when in reality, it never had a chance to succeed in the first place.

So how can you avoid the all-too-common technology disaster? We’ve broken it down into 10 key principles that will ensure that your business can adopt technology without daily chaos. These principles and the path to mastering technology within your business can be found in our white paper, Why Technology is So Difficult, available for download here.

Arbor Bank Breezing Through Closings

The Omaha World-Herald released an article this week featuring Arbor Bank’s recent mortgage closings with Pavaso. The World-Herald highlights Dale and Darla Langendorfer, seasoned homebuyers, who completed the signing of their mortgage documents digitally, without leafing through paper or even touching a pen. In under three minutes, the Langendorfer’s signatures and initials were placed 48 times across a 75-page stack of documents using Pavaso’s platform technology. Can it get any easier than this?

Arbor Bank is using Pavaso’s Digital Close Enterprise^SM to deliver all closing documents to consumers and fully complete their closings online. There’s no doubt that homebuyers like the Langendorfer’s much prefer this method to the traditional paper closing process. We’re so happy to see Arbor Bank offering their customers the ease and simplicity of a digital closing. The World-Herald also mentions that Arbor Bank is the only Lender in the metro-area to offer this technology, clearly positioning Arbor Bank as the go-to Lender for homebuyers. Great job, Arbor Bank! We look forward to sharing in many more future successes!

You can read the full article from the Omaha World-Herald here.   

A Tale of Two Processes

In the past, the process of buying a home was remarkably simple, and made a lot of sense for the type of world we lived in. In that world, a homebuyer worked with their local real estate agent, bank and title company, and knew them as they were part of their community and daily lives. Things became more complex and less personal as home buying grew beyond local boundaries and technology exponentially advanced, but the process didn't really change. Today, the industry is left with a process that is unfit to efficiently perform the activities and obligations involved with buying a home.

Enter Pavaso.  Our vision of a new process is one that utilizes technology to improve efficiency, accuracy, communication and collaboration. It's not meant to replace people.  Rather, it's meant to help them overcome the challenges of today's marketplace.  In a time when TRID has complicated the entire industry further, a new process that can simplify the transaction and can be easily implemented within a business is the key to so many of the issues you're facing and have yet to encounter.

Our latest white paper analyzes the industry’s current business processes, the issues facing businesses today, and how to transform these issues into competitive advantages. Dive into more detail on how to bridge the gap between the old and new world and set your business up for success in this white paper available for download here. 

Stop and Shift Your Thinking 1 Degree

With all of the change within the industry, businesses are now facing new issues never before experienced that need solving. Without a solution, your business has no way to align with the new rules set by the CFPB. No consumer focus, no compliance, no revenue. After all, if you decide to change nothing in your business, you might as well hand over your clients to your competitors who will. But with so many issues to take into account, how can your business cover all of your needs without paying for multiple spot solutions? All it takes is a simple change in mindset.

In this video straight from the desk of Pavaso CEO, Mark explains how shifting your thinking 1 degree can allow you to view your situation in a new way and discover that all of your issues can be solved in one single location. Mark describes what makes Pavaso’s platform so powerful, and why this change is necessary to your business’ survival.