Skip to main content

MBA and Fannie Mae increase 2004 originations forecast

National Mortgage Professional
Sep 29, 2005

MBA 2004 technology study: Industry leaders committed to tech investmentMortgagePress.commortgage,industry technology According to the Mortgage Bankers Association 2004 Technology Study released in mid-March, technology operating budgets in 2003 increased by 24 percent over 2002 and expect to increase by an additional 12 percent in 2004. In addition, the MBA study shows the technology capital budgets increased by 153 percent in 2003 and expect to increase by an additional 47 percent in 2004. Doug Duncan, MBA's senior vice president and chief economist, cited five key factors for continued technology spending: industry consolidation for increased efficiency, the elimination of error-prone and costly manual processes, a continuous effort to integrate technology solutions from borrower to investor, new regulatory and compliance requirements with more detailed reporting, and, finally, an increased focus on retaining customers despite mounting competition. The MBA 2004 Technology Study was designed to benchmark information technology costs, related practices in mortgage lending and servicing among a focus group consisting of nine of the top 15 mortgage industry leaders. Other key highlights from the study included: †Total 2003 technology spending (operating expenses plus capital expenditures) averaged $140 million per firm, with 67 percent of technology spending dedicated to origination functions and 33 percent of technology spending to servicing functions. As mortgage volume eases, company technology budgets over the next few years are expected to focus on loan origination system conversions, consolidations and/or systems development. †Approximately 32 percent of technology operating expenses were related to outsourcing technology functions performed by business partners. †Attitudes towards technology spending and project implementation have changed in the past year due to the need for better alignment business strategies, faster paybacks and higher returns on technology investment. †Factors determining the value of technology investments are often difficult for companies to readily quantify. While many companies considered return-on-investment analysis to be a priority, the original value propositions used to justify initial investments were not always revisited, post-implementation. For more information, visit
Sep 29, 2005
CFPB Issues Guidance On AI In Credit Underwriting

Creditors must provide specific and accurate reasons for credit denials, even with complex AI models.

Sep 19, 2023
Intercontinental Exchange Completes Black Knight Acquisition; Births Dark Matter Technologies Under Constellation Software

Rich Gagliano takes the helm at Dark Matter Technologies, poised to lead the future of Empower LOS with a 1,300-strong team, blending startup agility with decades of industry experience.

Sep 18, 2023
FHFA Invites Public Engagement On Modernized Credit Score Transition

Stakeholder forums and listening sessions planned to ensure seamless rollout; extended timeline for bi-merge credit report requirement in play.

Sep 11, 2023
Desperation Drives Difficulty in Closing Mortgages in California

Analysis reveals California among top 20 toughest states for mortgage closures.

Sep 11, 2023
If You Build It, They Will Come

Ratings will go a long way toward growing the market for home equity-backed securities

Sep 07, 2023
Investors May Be Losing Interest In The Single-Family Rental Market

Rise in interest rates, drop in values have them pulling back in certain regions

Sep 07, 2023