API strategy needs to become a priority for Mortgage banks and lenders in order to be sustainable and to become part of the digital mortgage revolution. A typical lender’s technology stack consists of different technologies/vendors and it is important to orchestrate and enhance these applications programmatically through APIs as well as create their own custom-tailored solutions. Therefore it is important that to have a strategy for implementing API architecture for Mortgage Marketing.
Need to define an API strategy
In the era of digital mortgage of using different technology platforms, loan origination system needs to be in the middle of stack and the LOS system needs to interact with all the various vendors to really have an integrated seamless process.
This type of integration will lead to efficient vendor collaboration along with decoupling from underlying loan processing systems.
Borrowers can expect quicker loan processing and funding with access to latest and accurate information from the source.
Mortgage Banks can supplement their LOS platform with additional functionality from other providers, with an emphasis on mobile computing and better borrower tools.
To improve operational efficiencies and reduce manual intervention.
Elli Mae, Optimal Blue, Fannie Mae and different vendors are focusing their development effort on APIs.
Different Tiers of APIs
System APIs: These set of APIs lays the foundation for API layer which provides access to legacy modernization, connectivity to SaaS apps, web services and Restful APIs.
Process APIs: These set of APIs, made up of a group of micro services, are defining the business logic for a given process and can be composed together for different processes.
Experience APIs: These are purpose built APIs for apps and are very lightweight and therefore can be leveraged for delivering services faster.
Functionalities essential for an API platform
It should support all the aspects of the API architecture design on the development as well as on the operational side.
The API architecture must be scalable such that every time a vendor is on boarded, there should not be a need to re-architecture the whole system to integrate them.
It must flexibly connect all of its departments together digitally.
The API platform must creatively differentiate the products, marketing and operations.
Challenges for API integration for mortgage banking technology
Since Mortgage Industry is a heavily document driven space, with different systems containing different types of documents it can be extremely difficult to query all the documents as an integrated whole.
Most of the mortgage banks and lenders currently have point to point integration which has to be transitioned to an API framework.
These technical issues lead to a variety of business challenges like data quality issues, increased risks, limited analytics, high costs and inferior pricing of mortgages.
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