Xerox's findings are seconded by Ellie Mae (ELLI), another tech company that offers process automation through products such as Encompass. "The things that folks are most focused on are the changes and regulation and compliance, and the detailed scrutiny and enforcements that are likely coming," says Jonathan Corr, chief operating officer at Ellie Mae. "The next big area is the demand for quality and verification by investors…that is why you're seeing the increased use of tech that monitors for compliance through the process."
Corr also says the costs of closing loans have increased. Industry estimates vary, ranging from $4,000 to as high as $5,000 for a $200,000 loan, which is up from around $3,000 as late as 2009. "Where you see these costs is in the labor and back office fulfillment. That's where you'll see more banks and credit unions embrace automation to bring costs down," Corr says.
