Leadership:  The Quiet Arrival of ‘Adapt or Die’

Two years ago, sponsored by the MBA and presented at their Annual Convention, I released “Adapt or Die: The Mortgage Technology Ecosystem Reimaged for the Digital Consumer.“  It was a call-to-action for industry leaders to reengineer their solutions, processes, and most importantly their data.  Today, the mortgage markets continue to languish due to high interest rates, lack of supply, changing consumer behaviors, and perhaps a hope for nostalgia. 

Regardless of the rationale, has the time arrived for the industry to make a quantum shift in who, what, why, and how consumers participate in a digital, AI enabled mortgage industry?  Indeed, business leaders point to regulations as a primary inhibitor to change.  Others point to a lack of capital and skills necessary to transform.  A third inhibitor resides with traditional systems, processes, and the vendors that dominate system functionality.  However, are these commonly accepted transformational principles sufficient after three years of declines and marginal increases projected in 2025-2026?

Recognizing the Drivers of Change

There is a fundamental mindset that inhibits the recognition and solution acceptance of the “investments” that need to be made in the face of declining to flat markets.  Traditional mortgage markets were segmented, distinct roles and data depending on where your business participated.  It was a process and compliance mindset.

As is 2022 and increasingly moving forward, this siloed mindset offers little beyond commodity products and services regardless of the vendor updates and positioning.  To participate and profit from emerging housing markets requires a different mindset and approach.  It requires a data mindset that transcends individual products and services.

The future industry markets are built on a foundation of shared data regardless of origination, servicing, or even securitization.  This is not an intuitive transformational approach.  It requires new investment models.  It demands new skills—especially when considering data-driven, small design AI (artificial intelligence).  And most importantly, changes to apps, to infrastructure, to cloud services, requires the identification of different business and technology drivers.  A few of these are presented below…

For the complete article, see the national Mortgage Bankers Association website for the text, tables, and graphics –> Mark Dangelo on Leadership: The Quiet Arrival of ‘Adapt or Die’ – MBA Newslink