Mortgage originators use SaaS software to reduce expenses

Many types of businesses have found that cost cutting is the extra push they needed to implement the increasingly popular software-as-a-service (SaaS) model, and mortgage originators are no exception.

A report from the Mortgage Bankers Association found that a growing number of mortgage originators, pinched by fewer originations and less available capital, have reduced their IT expenses by switching to the Application Service Provider (ASP) model.

"People don't have the capital to write big checks for these upfront systems, so you are seeing a not-so-subtle shift to the ASP models," said Michael O'Leary, senior mortgage consultant at MRG Document Technologies in Dallas. "They have always been there, but now there is more and more of a shift, and a really hard look at a hosted system as opposed to one that [a company] invests in and maintains."

MRG Document Technologies studies new local, state and federal regulations, adjusts the documentation in the proprietary software, and then uses ASP software to filter those changes to clients - all of which requires the complex, variable and real-time capabilities of SaaS services.

SaaS has become increasingly popular for businesses across a wide range of sectors, as it has been found to save money on IT deployment and maintenance costs, experts say.

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