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Mortgage lenders lag on modernization despite urgent need to upgrade
A nationwide survey found 76.5% of lending professionals call modernization very or extremely urgent, but only 8.7% say they have fully completed a platform migration.
HousingWire reports that a nationwide survey of lending professionals across banking, mortgage lending, and fintech shows an industry-wide push to modernize mortgage origination, servicing, and compliance technology, but with execution trailing behind urgency.
The survey found 76.5% of respondents describe modernization as extremely urgent or very urgent, while just 8.7% report completing a platform migration. Although 87% say their organizations are engaged in some form of migration effort, more than half still rely mainly on legacy technology platforms.
HousingWire says the gap is tied to operational constraints, including the costs, complexity, and resource requirements of modernization. The reporting also points to narrowing time for upgrades without disruption as digital mortgage experiences, mortgage fraud schemes, and borrower expectations raise demands on lending infrastructure.
According to HousingWire, operational efficiency is the top driver for modernization cited by 64.8% of respondents, followed by legacy technology limitations at 38.6%. The survey also indicates that 30.8% are modernizing to support new products and services such as non-QM loans, HELOC expansion, and digital-first mortgage products.