Posted by William Shuey | Director of Securitization | Opus CMC | Date: 16 June 2016

Data (particularly of the Big variety) and Analytics are tech terms that have become so ubiquitous the meaning and function behind them have begun to fade. Like 'disruptive' before it, it has become standard practice to market your business as a data intensive. In terms of sheer data volume and velocity, it's probably true. Some authorities intimate roughly 90% of all existing digital data has been created in the last two years.  As most know, however, effective analytics is all that really matters. The data means nothing unless you know what to do with it.

Quality Control mortgage industry is no different when it comes to data and analytics. Mortgage entities, in addition to expansions in internally gathered information, have a vast array of new government, user submitted, and 3rd party sources to draw from. And similarly, the organizations that will distinguish themselves will be the ones that can manage the data onslaught and develop insightful methods to leverage it.

Targeting Quality Control

Mortgage Lending covers a broad spectrum of diverse concepts. Integral components like the mortgage regulatory framework and property valuation are immense in and of themselves. This has historically been a confounding issue for quality control. In a world of limited resources, organizations need to have an effective set of priorities for delivering a refined and high-quality product.

In this way, data and analytics presents the potential to transform quality control. The financial crises has left us with a host of lessons in the form of expert witness testimony, industry white-papers, records of government inquiry, and litigation settlement information. Entities that have a developed a capacity for leveraging new techniques in the analysis of unstructured data along with traditional mortgage data stand to benefit the most by answering a really simple question with a very complex answer; what matters?

Refining Quality Control Processes

Given the inherent difficulty of mortgage quality control, efficiency is a concept that remains at the forefront of every manager's mind. Balancing the triumvirate of speed, cost, and quality in an industry where little mistakes often mean big dollars is daunting.  

Remaining competitive means leveraging data and analytics in such a way that points to meaningful and effective changes in how quality control is done. If done properly, analytics can lead to labor efficiency, reduced capital expenditure, fewer losses, and faster returns.  The alternative is falling behind and losing competitive advantage.

Improving Interaction

The human element of quality control cannot be overstated. Management's interaction with Quality Control personnel, intra-divisional cooperation, Quality Control's impact on customer relationships, and the business's communication with vendors and counter-party constituents are perhaps the most vital components of QC.

Social media and the proliferation of web connected devices are some of the primary drivers of our recent data explosion. Major technology enterprises have realized this, harnessing the power of impressions to enhance the user experience. The application of analytics to improve interaction has vast potential for all industries though. To be sure there are challenges, not the least of which is privacy. Yet analytics holds the potential to make quality control more adaptive, more responsive, and more human.