PLEASANTON, Calif.,
Oct. 20, 2020 /PRNewswire/ -- With
interest rates near record lows, mortgage lenders are being
inundated in the current high-volume market, increasing the need to
use data and analytics tools to become more operationally
efficient. A new eBook from Ellie Mae, now part of Ice Mortgage
Technology and Intercontinental Exchange, Inc. (NYSE: ICE),
analyzes how lenders are using data and analytics to increase
efficiency, make better lending decisions, control costs, identify
and mitigate risks, establish repeatable and measurable processes,
and uncover new business growth opportunities.
"The proper use of data should create a virtuous profit cycle,"
said Joe Tyrrell, president of ICE
Mortgage Technology. "As lenders shift to a data mindset and use it
to identify and correct competitive disadvantages, market
opportunities, cost reductions and blind spots in their workflows,
they can increase their throughput and profitability to invest in
their continued growth. However, many lenders don't have a defined
data and analytics strategy, which means they're missing out on
opportunities to contain costs and accelerate growth for their
organizations."
Ellie Mae's Data & Analytics survey found that two out
of five (39%) lenders could not say how much their companies spent
on data and analytics in 2019. That shows how inconsistent the
industry's current use of data is to inform strategic business
decisions. Lenders large to small are starting their data journeys
from different points, have access to different resources, barriers
to adoption, and abilities to implement a data and analytics
strategy.
Ellie Mae found that it is far more common for large lenders to
have a clearly defined data and analytics strategy (60%), compared
to small and mid-size (55%) lenders, who are more likely to
be in the early evaluation stage of their data journey.
"As the mortgage industry becomes more competitive, lenders will
need to find new ways to leverage and analyze available data to be
operationally efficient, differentiate, and grow their business,"
Tyrrell said. "It's not enough to use data to understand 'what'
happened in the past. Lenders need to understand what is happening
right now and what is likely to happen in the future, while they
still have the ability to take corrective action and/or make
critical decisions."
"Companies that implement and continuously improve their data
analysis practices can reap the benefits of greater operational
efficiencies, risk mitigation, transparency improvements, and
streamlined processes. But the real value of data insights is to
create a competitive advantage in positioning themselves in advance
of emerging market trends, identifying ways to improve
profitability before anyone else and most importantly knowing how
to meet the expectations of their borrowers and drive
differentiated customer satisfaction," he added.
According to Ellie Mae's Data & Analytics survey, lenders
are all over the map when it comes to their data and analytics
journeys.
- Descriptive Phase: 37% of lenders have just begun
their journey. They can see simple facts about past business
performance.
- Analytical Phase: 36% of lenders have reached the
stage where they not only understand what happened, but why it
happened, too.
- Predictive Phase: 24% percent of lenders have taken
it a step further and are using data to see patterns and meaningful
trends that affect their business.
- Prescriptive Phase: Only 3% of lenders are far
enough along their data journey to conduct the type of
prescriptive-level analyses that can inform how they should make
future decisions, for example, recommending loan programs for
specific applicants based on a set of predetermined factors.
Forward-thinking lenders know that data can unlock the secrets
to understanding and anticipating the needs of their business,
their customers, and the broader industry. To download the Ellie
Mae Data & Analytics eBook, and for more information,
visit:
https://www.elliemae.com/resources/collateral/ebooks/the-big-data-revolution
About Ellie Mae Insights
Ellie Mae Insights™ provides an easy-to-use application to
access industry and peer group data, as well as industry
benchmarking, so you can be better informed in near real-time to
make smart data-driven business decisions. It works together with
Ellie Mae's Encompass Data Connect, enabling you to analyze loan
origination data with your existing visualization tools to uncover
actionable insights that can dramatically increase your business's
efficiency, agility and profitability. By blending your loan data
with your front and back office data, you can gain a 360-degree
view of your business to spot trends and production
inefficiencies.
Learn more about how Ellie Mae is changing the future of the
mortgage industry by leveraging business intelligence, artificial
intelligence, machine learning, and real-time data analytics to
build the next generation of mortgage management solution. Visit
elliemae.com/solutions/data-analytics.
About Ellie Mae
Ellie Mae, now part of Intercontinental Exchange, Inc. (NYSE:
ICE), is the leading cloud-based platform provider for the mortgage
industry. Ellie Mae's technology solutions enable lenders to
originate more loans, lower origination costs, and reduce the time
to close, all while ensuring the highest levels of compliance,
quality and efficiency. Visit EllieMae.com or
call 877.355.4362 to learn more.
© 2020 Ellie Mae, Inc. Ellie
Mae®, Encompass®, AllRegs®, Mavent®, Velocify®,
the Ellie Mae logo and other trademarks or service marks of Ellie
Mae, Inc. appearing herein are the property of Ellie Mae, Inc. or
its subsidiaries. All rights reserved. Other company and product
names may be trademarks or copyrights of their respective
owners.
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SOURCE Ellie Mae