As exciting as it was to hear about the successes that some servicers have had in the industry with embracing new innovations, there was a degree of uncertainty and vagueness to some buzzword technologies presented at the MBA’s Mortgage Servicing Solutions Conference & Expo. The trendiest and most talked about solutions may seem like a magical fix for long unsolved problems, but there is still little in the way of evidence that they are the best solutions for the job. Embracing digitization, automation, and more efficient processes is vital to the continued growth of the industry but beware of the solutions that promise unlimited benefits without addressing major concerns.
Despite promises that this technology is not needlessly searching for a problem to solve, blockchain supporters overlook the serious pitfalls of how costly operating transactions on the chain can be—likely outweighing what savings this process provides in efficiency—or the question of how transactions can be done securely and in compliance in an intentionally deregulated environment. Not to mention the abundant security vulnerabilities and nonexistent avenues for legal or financial enforceability. It is tempting for some to look to blockchain as the ultimate solution for making transactions instantaneously and re-envisioning how data can follow a mortgage asset throughout its lifecycle, but the appeal of this technology still leaves many questions unanswered. It is largely unconvincing that blockchain is the single best avenue to pursue these types of advances in process efficiencies and customer experience improvements rather than yet another attempt to draw investors into a rapidly expanding bubble waiting to pop.
Considering all of the conversation around building relationships and trust between customers and servicers, it seems more important than ever to double down on the security of customer data. Venture Solutions has been an industry leader in secure customer communications for decades because we remain as committed to protecting our clients’ customers as if they were our own. We constantly update our processes and develop new solutions to meet industry regulations and compliance so our clients can be confident that their customer data is in the best hands possible. Innovation with the goal of great efficiency and cost-savings is something we continuously strive for, but never at the expense of security or quality.