According to the MORTECH 2010 report module, “Core Technology Use and Systems Shopping," lenders are making up for delayed technology spending and will increase their spending on information infrastructure in 2011. MORTECH 2010 documents lenders of all sizes plan to increase information technology (IT) investments in 2011. According to the study, a stratified random sample of all lenders producing at least $50 million per year in residential single family mortgages, the mortgage lending industry plans to spend a total of $4.11 billion on information technologies of all types. Industry spending would be 15 percent above MORTECH LLCs estimate of $3.57 billion IT investments by residential mortgage lenders in the U.S. in 2010.
“As the sub-prime market disintegrated in 2007, IT spending collapsed," said Jeff Lebowitz, president of MORTECH and author of MORTECH 2010. "Sub-prime lenders had accounted for the bulk of the investment growth early in the decade. Industry spending will not reach the peak spending years of 2005–2006, when the level of IT investment was an estimated $4.6 billion,” Lebowitz said. “Now, lenders are catching up on workflow integration and electronic document management. We will see investment, but not much innovation. The industry lags in much talked about enhancements such as straight-through processing, e-mortgage, cloud computing, etc. Still, 2011 will be a good year for many mortgage technology application suppliers.”
For more information, visit www.mortech-llc.com.