Magazine article Mortgage Banking
Mortgage Builder Sees Increased Interest in Purchased Software over SaaS
Southfiled, Michigan-based Mortgage Builder Software Inc., a provider of loan origination system |LOS| tech nology, said it has been signing up new clients at a recordbreaking pace, and over the last two years the product of choice has most often been the company's Software as a Service (SaaS) option to fill lenders' needs for more robust origination technology. Because it finds more new and existing clients have been interested in purchasing the software rather than accessing it over the Internet and paying by the loan with the popular SaaS method, Mortgage Builder believes the increased interest could signify that the industry is more optimistic about its future.
"We have seen increasing interest from companies wanting to own and manage their LOS system independently, and that is a reversal over the previous trend toward SaaS," said Keven Smith, Mortgage Builder's president and chief executive officer. "Lenders seem to be more focused on the long term view than they were when mortgage companies were disappearing by the dozens every week. Then, driving down costs on every loan was the most important thing, and that's what SaaS does. It's not as critical now as it was then, it seems."
While using SaaS and other Web-based delivery methods oiler lenders the benefit of only paying for actual use, having the vendor take responsibility for maintaining servers and keeping everything updated also meant greater reliance on them by the lender. As the industry takes stock, some lenders are deciding they prefer controlling their own data and technology resources, according to Mortgage Builder.
"We offer the ability to switch from hosted models to installed configurations and back again," Smith explained. …