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April 2018
Mortgage Technology
Sectorwatch
Technology solutions for the residential mortgage industry will focus on enhancing the consumer experience and continuing the trend toward a digital mortgage. Simplifying and streamlining the operational aspects of the origination process with technology are key to achieving these goals.
The use of blockchain technology, big data/analytics and artificial intelligence (“AI”) will be hot topics for 2018 and 2019. AI and data analytics will improve credit underwriting, streamline the loan process, prevent fraud and improve cyber-security.
Industry Trends:
- Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
- Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation
