Susan Graham of FICS on APIs in Mortgages: Driving Efficiency and Connectivity
Susan Graham is the president and COO of FICS (Financial Industry Computer Systems Inc.), a mortgage software company specializing in cost-effective, in-house mortgage loan origination, residential mortgage servicing and commercial mortgage servicing software for credit unions, mortgage lenders and banks. FICS also provides document management, API and Web-based capabilities in its full suite of products.
The mortgage landscape has been dramatically reshaped in recent years due to the explosive growth of automation and technology. One crucial element that has emerged as the linchpin of this financial revolution is interconnection.
In today’s mortgage and servicing ecosystem, interconnection among various software systems has reached unprecedented levels. Lenders now need to work through a connected web of mobile applications, servicing software, loan origination software and loan application software. At their best, these combined software platforms provide staff with improved efficiency and borrowers with enhanced services. At the heart of this interconnected web lies the Application Programming Interface, or API, a powerful technology that facilitates seamless financial interactions and the exchange of data.
APIs are software-to-software interfaces that enable applications to communicate back and forth easily without manual user intervention. APIs can be used internally to automate various systems in-house, or they can be used externally and made available to any parties interested in developing an interface or connection to their product or service. By utilizing available APIs, lenders can leverage multiple solutions to achieve the desired functionality and create a centralized database.
APIs let mortgage professionals seamlessly order fulfillment services from various service providers or share data across platforms, allowing users to remain in one system to support their borrowers. APIs offer mortgage professionals and borrowers several essential benefits, including improved efficiency, data quality and user experience.
Enhancing Efficiency Through API Integration
Utilizing APIs offers significant advantages in terms of workflow automation. By enabling seamless integration among software programs, APIs empower mortgage professionals to construct a tailored tech ecosystem that facilitates automatic system communication and streamlines operations.
For instance, APIs can swiftly query data or update a database during the loan application. Previously, lenders manually gathered information like borrower credit scores and liabilities to assess loan eligibility. With APIs, lenders can now integrate their online portals or loan origination systems (LOS) with credit agencies, allowing for near-instantaneous loan eligibility determination.
On the servicing front, when combined with automation or scheduling tools, APIs can automate tasks like generating end-of-day and end-of-month reports, investor closeouts, monthly loan statements and interfaces to other systems. These APIs can also notify IT staff once a task is completed.
By leveraging APIs, mortgage professionals can reduce after-hours and weekend work, saving time and money while minimizing errors stemming from human oversight. This can enable servicers to focus more time on higher-value tasks that need manual intervention.
Enhancing Data Consistency with API Integration
By facilitating seamless information sharing between loan origination software and servicing software, an API eliminates the manual migration of data between platforms. This reduction in human intervention significantly enhances data consistency and accuracy, improving overall data management.
Moreover, APIs determine how data is shared, ensuring compatibility among separate systems. APIs can enable real-time access to specific data and functionality within another system, blurring the lines for a user regarding the data they see and the overall use of their system.
When loan origination software and web applications utilize internal APIs, borrowers gain real-time access to loan application documents and status updates. Borrowers can conveniently upload supporting documents at any time between application and closing. Additionally, the mortgage application data can be automatically imported into separate platforms, eliminating the need for manual data re-entry.
Upgrading the Borrower Experience with APIs
APIs can enhance the lending experience for both borrowers and mortgage lenders. In today’s fast-paced world, borrowers expect seamless and speedy transactions. By leveraging APIs, lenders and servicers can expedite their processes and significantly reduce manual intervention in loan processing, enabling them to deliver loan information to borrowers more rapidly and accurately.
For instance, instead of waiting up to 24 hours to see updates reflected in their online application or servicing portal, borrowers can receive real-time updates on their loan status and gain immediate access to statements and disclosures. On the servicing side, borrowers benefit from instant, real-time access to their specific loan data and statements and the convenience of making online payments around the clock.
Assessing the Value of APIs for Mortgage Servicers
Many servicers can strengthen their operations by integrating APIs that build upon existing capabilities and automate processes, allowing customized solutions without switching or upgrading platforms when their business model changes or expands.
To determine if your company would benefit from utilizing APIs, consider the following questions:
• Are there repetitive tasks that our mortgage team handles daily?
• Is there information I want to share with borrowers that isn’t currently accessible in real-time?
• Are there additional features or workflows we’d like to incorporate into our existing applications?
• Do I want automation to free up staff time for better customer service?
Answering “yes” to any of these questions is a sure sign that your organization would benefit by implementing APIs. Ultimately, APIs offer significant internal and external advantages for mortgage professionals and borrowers alike.
(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes your submissions. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)
