Good Games Have Rules

August 30, 2007

By Scott Kersnar, Editor Mortgage Technology Magazine

Microsoft architect Ray Ozzie is famed for predicting the general technology shift from software to services -- and for promising that anything Microsoft does from a services infrastructure perspective will be aligned with .NET and its developer tools.

If you go to LoanAce.com to download their LOS software, the download requires that the .NET Framework 2.0 to be installed with it. .NET has become ubiquitous and the move to services is becoming unstoppable along with it.

Going forward I expect the service providers to become the dominant players as standards take hold -- under the aegis of MISMO and otherwise -- and as technology itself becomes more and more of a commodity. It is execution, not the technology itself, that makes for a great provider or an efficient end user.

Standards are the friends of the best players. The mortgage-creation process is too complicated to embrace technology that does not thrive in a collaborative setting. To address problems such as buybacks, there needs to be standard automated ways to spiff loans, invoke warrants and create some hard stops in the transmission of closed loans to the investor so that the credibility of the mortgage process is not placed in doubt. The technology is available to make such safeguards a reality.

However, if the industry chooses inaction over self-remediation, there are plenty of legislators eager to "solve" problems through cumbersome laws concocted in the state capitols and the halls of Congress.

Source: http://www.mortgage-technology.com/newsletter/kersnar/20070830.html

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