ResTech Committee Profile – “Why Should We Care?” -- September 2007 (Also appearing in the MBA Tech NewsLink)

When I was approached by a member of the Residential Technology (ResTech) committee to assist with their communication efforts to the MBA members, my initial question to the group was “why?”  Not why I should help, but why should mortgage individuals who are working through one of the most significant industry downturn cycles in recent memory care about ResTech and their activities?  After all, are not layoffs permeating the media reports?  Are not the subprime debts and securitization (both real and synthetic CDO’s) contributing to changing market sentiments?  With apparent chaos ripping across the daily headlines, why should the passionate actions of a few be important to many?  Why indeed. 

Allan Lubitz the Chair of the ResTech Committee passionately articulates, “The reason that people should care is that the speed and efficiency of originating and servicing loans today is possible only because of technology.  Turn off the phones, e-mail, LOS to name but a few, and the place would grind to a halt.  In the mortgage business (like other financial services), everything we do requires technology.  Borrowers don't drop into their local bank branch any more to get a mortgage.  The process starts by phone or on the Internet.  Every step from that point forward requires sophisticated technology.  Many people would like to simply treat technology like electricity and assume that it will always be there ready to plug in.”

So who and what is ResTech?  First let’s establish the foundation.  Stating the obvious, this appointed MBA committee’s primary purpose is to further the advancement of residential mortgage technology.  What may not be apparent, after speaking with Allan Lubitz, the chair of the committee, is that while their efforts speak to technology the committee’s goals and actions are about delivering results, improvements, and consistency to business operations.  To their credit, the committee recognizes that for technology to become commonplace and integral to mortgage lenders and servicers, it must facilitate or enable business development and transformation. 

Is ResTech merely a “wolf in sheep’s clothing” for those technology purists seeking solutions and standards?  No.  The committee is not only “staffed” with nine recognized CIO’s, CTO’s, and industry leaders, it is supported by a network of industry professionals who’s experience spans the gambit of mortgage technology, lending, business development, security, standards, compliance, solution providers, and product specialists.  Reporting to the Board of Directors Technology Steering (BoDTech) Committee, ResTech’s primary 2007 goals include support for MISMO adoption, eMortgage achievement, and information security best-practices and awareness. 

You may be thinking, “that’s nice, but what else are they doing that would be of interest or relevance to MY daily challenges?”  Did I forget to mention their cross-committee and cross-industry involvement with other MBA groups as well as outside organizations including property records?  Still not enough?  ResTech is also involved with automated collateral valuations, the end-to-end “e” components of the mortgage life-cycle, and support for the Certified Mortgage Technologist (CMT).  Needless to say, the committee consistently has a very full yearly agenda.

Let’s explore the myths and realities surrounding the MBA Residential Technology Committee.

Did You Know?

Did you know there are ResTech educational papers that have been written and that are being developed on topics covering MISMO, information security, eMortgages, and standard certifications?  For many years now, this committee has been at the forefront of many of the critical challenges facing our industry.  As a result of their mission and the individuals involved, ResTech has formulated and updated key artifacts that include:

Allan Lubitz reinforces ResTech’s importance to the industry stating, “MBA members should care about technology in the mortgage industry because it has taken billions of dollars, considerable expertise and a lot of years to build this platform.  Any reflection on key metrics over the past two to three decades will show profound improvements in the industry's efficiency and the primary reason is technology.  And it will take continued funding, leadership and involvement at all levels to ensure that technology continues to serve and transform the industry.”

Did you know that there are centers of excellence or subgroups within ResTech (not just official subcommittees)?  Supporting the chair of the ResTech Committee and the BoDTech priorities are five groups with concentration on:

  • Automated Collateral Valuation,
  • Communications (i.e., external communications to members),
  • eMortgage Adoption,
  • Information Security, and
  • MISMO Adoption.

Did you know that ResTech is actively working on information security awareness and assurance?  This effort is being spearheaded by Chris Burckhardt and supported by a cast of who’s who within the mortgage information security profession.  Chris and his team are actively working on a new educational program entitled the “Five-Step Information Assurance Plan.”  Additionally, they are focusing their efforts on promoting industry awareness, CampusMBA educational programs, and coordination of security risks and issues for all MBA, MISMO, and SISAC initiatives.  The committee meets on the second Wednesday of each month.  For more information, please contact Chris at 303.493.2901 or via email at Chris.Burckhardt@Pulte.com.  

Did you know that the eMortgage task force has five areas of concentration for 2007?  As eMortgage adoption continues to accelerate, ResTech has created an internal task force that is concentrating on five critical components:

  • Industry Awareness and Feedback,
  • Warehouse Lending,
  • Investor Adoption,
  • eServicing, and
  • eRecording.

Using a combination of data gathering and dissemination techniques, this extended task force of industry experts is working multiple channels within and outside the mortgage industry to promote eMortgage adoption.  If you have an interest in providing input or assistance to the eMortgage efforts, please reach out to Harry Gardner at 202.557.2839 or email him at HGardner@mortgagebankers.org.

Did you know that ResTech is actively working with the MISMO Governance Committee to expand adoption and subscriber levels?  By promoting the value of the MISMO standards and memberships, ResTech members are assisting the MBA in targeted key areas such as secondary markets and servicing.  Specifically, ResTech has partnered with the MISMO Adoption and Communication subgroup to:

  • Increase the MISMO Subscriber base,
  • Increase adoption of MISMO within the existing Subscriber base,
  • Promote MISMO adoption via enhanced communications,
  • Increase Secondary Adoption of MISMO,
  • Increase Servicing Adoption of MISMO, and
  • Increase Government Adoption of MISMO.

The group meets face-to-face at the MISMO trimester meetings and also participates in frequent conference calls.  If you have an interest in providing input or assistance to the MISMO Adoption efforts, please reach out to Rob Lux at rob.lux@gmacrescap.com or 215.734.4205.

Did you know that ResTech has a communication group to help promote information sharing and feedback to the MBA members?  From the outside, navigating the ResTech deliverables, directions, and goals can be daunting and sometimes frustrating.  As a result, 2007 ushered in a new focus and initiative to facilitate information dissemination.  Spearheaded by Anthony House and supported by Mark Dangelo, this groups’ purpose has gained new significance during the second half of this year with new members, changing industry priorities, and an increased sense of purpose to involve more members.  The group is also in the preliminary stages of creating a “mortgage IQ test” to promote consistency and information accessibility for the industry.  Anthony can be reached at 865.305.3036, email ahouse1@comcast.net, and Mark can be contacted at 440.725.9402, email m_dangelo@innovative-relevance.com. 

Did you know that ResTech has a “voice of the vendor” committee?  Yes it’s true.  It’s also known as the ResTech Software and Services Subcommittee (one of two official subcommittees within ResTech).  Co-chaired by Ruth Thompson and David Walton, this subcommittee was created for the purpose of vetting and presenting vendor input to the ResTech lender forum.  Meeting the second Tuesday of every month, this subcommittee assists the MBA in formulating policy regarding technology issues in the residential mortgage industry.  Annually appointed members serve by:

      • Researching, discussing and evaluating technology issues affecting the industry,
      • Escalating policy recommendations to the ResTech and associated leadership committees within the organization, and
      • Serving as expert technology resources for other residential committees and MBA Association leadership. 

Phone and email questions submitted to this subcommittee should receive a response within two days.  For additional information please visit http://www.mortgagebankers.org/ResidentialSoftwareandServicesSubcommittee.htm

David Walton highlights his certainty why ResTech is relevant even during times of industry challenges -- “Relatively speaking, the mortgage industry is lagging behind other key industries in terms of state of the art technology utilization.  Therefore, continued investment is needed to just get current and realize additional efficiencies that other industries are already experiencing.” 

Did you know the ResTech committee is an open forum for MBA members to submit technology questions, concerns or clarifications?  In ResTech, you don’t have to be a technologist to be heard.  Within the ResTech forum, there are key individuals that are willing to accept your question or topic for committee consideration.  Key contacts and their area of representation include:

ResTech meetings are held monthly and interested MBA business and technology members are encouraged to get involved and contact the above individuals.  Remember, the committee’s output is only as good as the effort YOU put forth.

 

For 2008 MBA entries, click here

For 2007 MBA entries, click here

For 2006 MBA entries, click here