Times are tight. Origination volumes are down. Defaults and foreclosures continue to soar, and lenders are finding it harder and harder to stay afloat. However, there is hope in sight. As history has shown, the housing market is extremely cyclical. To survive the downturns, lenders must learn to do more with less without sacrificing customer service. According to Needham, Massachusetts-based TowerGroup, the top 10 lenders in 2006 averaged $86 million in document management costs, or $202 per loan. In a 2008 report, Top Business Drivers, Strategic Responses and Technology Initiatives in Consumer Lending, TowerGroup analysts cited data management and enterprise content management (ECM) as key technology initiatives lenders should undertake as part of a larger strategic response to top business drivers, including market volatility, cost containment and paper/manual-based processes.
