The need for efficient digital mortgage origination has never been more pressing. Lenders and intermediaries require less manual, quicker decision-making, from the initial fact find to the Decision in Principle (DiP) and full mortgage application. API functionality offers the key to achieving this and while for many it is a daunting prospect, it doesn't have to be.

I?m discussing the issues and considerations that should inform API strategies with my colleague Adam Pritchard in this year's Pioneer Zone at #DIS20.

An experienced approach that addresses market challenges

In the session, we reflect on how the experiences and expertise developed in other markets such as the protection market, have informed the development of mortgage API technology. APIs offer greater connectivity, efficient access to current and new data sources, an engaging user experience and ultimately new mortgage propositions.

The winning approach acknowledges that lenders want bespoke solutions that ask specific and very often varied questions. However, it is equally important to understand that brokers? CRM systems have specific business processes to support.  The model makes it easy for intermediaries because it focuses on moving the data not the process. But even this is not without challenges. It is still the case that lenders and distribution technology platforms are finding it hard to develop data standards that can support the integration of multiple, often competing, parties. Mapping data is a big challenge, firstly in terms of scale and secondly in the variation of what data are required but the right solution does not need to be onerous.

No-one needs heavy lifting

API technology has come a long way and, in many instances now significantly reduces time and eradicates duplication. The advantages already enjoyed by intermediaries and lenders using platform agnostic solutions mean many can now generate a DiP and full mortgage application with minimal rekeying, systems integration or the need for advisers to learn new processes. But we can do so much more.

The future - the real-time DiP API

Together, with the market, IRESS is looking to deliver real-time DiPs. This ambition presents new challenges and means truly understanding the end to end business journey and impact on the process of automating decisioning. This goal means we must all address issues such as mapping the volume and type of data required both ways, integrating the application of individual lending policy rules, and giving visibility of what data is being used to create a DiP - not to mention the management of ongoing change, the secure and controlled handover between systems and the support that may require.

Join the conversation

It's an ambitious next step that needs the industry's input. Iress is leading this through its quarterly Lender Connect Forum, supported by the industry and a recognition that processes must change because intermediaries, lenders and borrowers are demanding it. A new era of collaboration, alignment of common industry goals and a better user experience await. If you would like to join us, email jacqueline.durbin@iress.com.