Aite Group reports on commercial mortgage technologiesMortgagePress.comCommercial mortgage software solutions
In a new report, "Commercial Mortgage Technologies: Automating a
Non-Standardized Process," Aite Group examined the challenges faced
by the United States commercial mortgage industry and how
technology can address these challenges. The report concluded that
the industry is severely under-utilizing technology. As many as 75
percent of commercial mortgage lenders are still using home-grown
proprietary solutions, and almost 75 percent continue to rely on
Microsoft Excel spreadsheets for sophisticated modeling and cash
flow forecasts.
Complex transaction structures and a lack of standardization
have slowed down the adoption of technology by the commercial
mortgage industry. New market dynamics, however, are driving
change.
"Factors such as increased competition and a greater demand for
commercial mortgage-backed securities are driving the industry
toward greater use of technology," noted Christine Barry, research
director with Aite Group and author of the report. "Today's
solutions not only create central repositories and eliminate manual
and costly processes, but they also enable lenders to quickly and
accurately generate documents for sale in the secondary
market."
Aite Group forecasts that by 2008, U.S. commercial mortgage
lenders will spend more than $186 million on third-party vendor
solutions and enhancements (not including servicing technologies)
as origination growth and demand for this type of debt
increases.
For more information, visit www.aitegroup.com.
