REINVENTING T H E - Exploring Open Banking Opportunities in Digital Mortgages & Building a Seamless Homebuyer's Journey - Portfolio+
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REINVENTING THE MORTGAGE
REINVENTING
THE
Exploring Open Banking Opportunities
in Digital Mortgages & Building a
Seamless Homebuyer’s Journey
por tfo lio + © 202 2 p o r tfo l i o p lu s.com
REINVENTING THE MORTGAGE
Let’s Admit It: Mortgages Aren’t Perfect............................................... 3
Reinventing the Mortgage..................................................................... 7
Six Key Elements of Building an Effective Digital Homebuyer’s Journey in an
Open Banking System........................................................................................ 7
A Shift in Perspective & the Evolving Role of Fintechs in Digital Mortgages and
Open Banking..................................................................................................... 8
Building a Seamless Digital Homebuyer’s Journey........................... 10
Eliminate Manual Processes in Mortgage Origination.................................... 10
Provide a Self-Serve Digital Origination Experience ...................................... 10
Prefill and Automated Mortgage Application Data......................................... 11
Leverage Key APIs & Integrate with Industry Partners................................... 12
Extend the Homebuyer’s Journey Beyond the Mortgage Process ................ 12
Build Trust & Add Value through Financial Literacy....................................... 13
This is just the Beginning.................................................................... 14
This is Just the Beginning for Digital Mortgages and Open Banking............. 14
Adapt, Rethink, and Reinvent.......................................................................... 14
por tfo lio + © 202 2 p o r tfo l i o p lu s.com
REINVENTING THE MORTGAGE
LET’S ADMIT IT:
MORTGAGES AREN’T PERFECT
I
f you’re not going to say it, I’m going to say it. With a series of obscure A or B formulas for
Of course, I know I shouldn’t—you shouldn’t, determining things like minimum qualification
either—but we need to do something about requirements at multiple stages throughout the
these things before it’s too late. So, here it is. customer journey, potential homebuyers must
navigate a complex landscape of lenders and
Mortgages aren’t exactly perfect. brokers, determine minimum down payment
requirements, meet OSFI’s “stress test” or
If you don’t agree, you’ve either never had to minimum qualifying rate, work with realtors
secure one or you’re not the average Canadian and lawyers and ultimately settle on a mortgage
homebuyer. lender that undoubtedly offers very little
differentiation in terms of product, pricing, and
Now, we’re not supposed to admit that. Whether experience.
you’re a mortgage broker or a mortgage lender—
or a company that develops With very little differentiation
mortgage software and financial “If you’re not going to say between mortgage products
technology—admitting that it, I’m going to say it. (...) from lender to lender, for the
mortgages aren’t great can seem Mortgages aren’t exactly average Canadian homebuyer
a little counterintuitive. After all, perfect.” much of the experience of
we’re in the business of selling securing a mortgage—apart
these things and helping Canadians realize their from the tedious tasks of collecting paperwork
dream of homeownership. It’s never a good idea and personal financial documents—is rooted in
to admit the thing we’re selling is kind-of sort-of the small details between interest rates, terms,
a little, well, flawed. and amortization schedules. It’s not uncommon
for homebuyers to decide on a lender and
Mortgages aren’t perfect because the experience choose one mortgage product over another
isn’t perfect. For most Canadian consumers, the mortgage product based on an interest rate
process of applying for and securing a mortgage that’s a fraction of a single percentage better.
is a convoluted, unclear, fragmented journey, one
that often introduces unnecessary stress into the Even then, it’s up to consumers to understand
already stressful process of purchasing a home. how the interest rate on their mortgage will be
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REINVENTING THE MORTGAGE
in grade 10 math, right? No? all those financial documents
calculated and whether their It probably doesn’t matter, and personal details to
best options are fixed rate, anyway. Don’t worry about manually assess an applicant’s
adjustable rate, or a hybrid it, though. Your mortgage creditworthiness, including
rate. Homebuyers should also specialist or broker will have a proof of income, financial
understand what percentage pencil and a notepad to calm history, paystubs, T4 slips, and
of their monthly payments will your nerves. Watch as they proof of down payment. While
go towards interest and what scribble down some numbers contributing to the unpleasant
percentage will go towards here. Feel better? experience for homebuyers,
the loan principal. Easy stuff if these manual processes are
you’re a mortgage specialist. Not really. inefficient, cumbersome, and
For the average consumer, even costly.
though, even Simply
that can “Mortgages aren’t perfect deciding We can’t speak for everyone, of
feel a little because the experience on which course. Some industry experts
overwhelming. isn’t perfect. For most mortgage would argue mortgages and
Canadian consumers, the to choose the processes lenders use to
Will rates rise, process of applying for isn’t always originate, underwrite, and
homebuyers and securing a mortgage the most fund them are just fine. That’s
might ask? is a convoluted, unclear, convoluted OK, too! There are two sides
Maybe! As fragmented journey (...).” part of the to this. After all, the housing
mortgage experience. industry here in Canada has
specialists, it might surprise When it comes to the mortgage been incredibly strong over the
you that we don’t really know, process, there’s the pre- last decade and particularly
dear homebuyer. It might help qualification or sometimes strong throughout the years of
if you understand a bit about pre-approval or sometimes the pandemic, with the market
the overnight rate and how the the “rate lock.” There’s the consistently breaking records at
Bank of Canada works—yes, to application process, the what some might consider to be
make things more complicated, underwriting process, the an alarming rate.
you should know that runaway formal approval, and the
inflation and monetary policy funding process. After that, it’s In fact, at one point in 2021
play a role in your mortgage years of mortgage payments to the average price of a home in
here, too. either renewal or refinancing or Canada was up 31.6 percent
maturity. to $716,828. Since then, the
Don’t worry, though. This is average
only the single biggest purchase For lenders, things aren’t price of a
of your life. Choosing what much better. Originating and home has
mortgage is right ultimately underwriting mortgages is continued
comes down to a bunch of a time-consuming manual to climb
formulas and calculations process. In addition to even higher,
and terms that first-time requesting and reviewing credit hitting
homebuyers like you may not reports from external parties, $816,720 in
fully understand. You were mortgage lenders and their February of
an exceptional student back underwriters must also review 2022—the
4 p o r tfo l i o + © 2022REINVENTING THE MORTGAGE
highest national average home highs in the first months of lenders—but also a lingering
price ever recorded at the time, 2022, there’s no question that pandemic has exposed and
according to the Canadian mortgages are still doing the underscored the need for digital
Real Estate Association. The job they’re designed to do. mortgages and better digital
pandemic forced the market They are continuing to provide mortgage lending experiences.
into overdrive, and within homebuyers, brokers, and
the short span of two years lenders with a comprehensive Consumer expectations
Canadian home prices surged process for financing by taking for financial services have
by more than 50 percent. a structured approach to changed. Banks and lenders
lending money and setting are expected to think like
In major Canadian cities across and facilitating repayment technology companies and
the country, the average price terms. provide the same kinds of
of a home is significantly higher. seamless digital experiences
Take Toronto and Vancouver, No matter how imperfect as those offered by Big Tech
for instance. The average they might be, mortgages still companies—companies like
price of homes in Toronto and work. Apple and Google. While
Vancouver reached $1.354 strict regulatory and privacy
million and $1.374 million But just because something requirements, technological
respectively in April 2022. That’s works doesn’t mean it and infrastructure complexities,
an 18.9 percent year-over-year shouldn’t be improved. and cost and resource
increase for Vancouver and As consumers, the way we concerns may have prevented
an astounding 30.6 percent work, the way we engage meaningful technological
year-over-year increase for with brands, and the way we innovation for banks and
Toronto .(4)
interact with lenders
technology “As consumers, the way until now,
Without question, the low rates, has changed we work, the way we a Canadian
short supply, and increasing dramatically, engage with brands, and framework
demand for housing throughout so why the way we interact with for open
the COVID-19 pandemic haven’t our technology has changed banking finally
created a perfect storm for the mortgages? dramatically, so why promises to
Canadian housing market, with Homebuyers haven’t our mortgages?” change all that.
home sales and prices only just deserve a
beginning to ease as the Bank better experience. Open banking promotes
of Canada began its rate-hiking competition in the industry,
cycle to battle the country’s The proliferation of mobile opening up new opportunities
runaway inflation that reached technology over the last for nimble, tech-savvy,
a 31-year high of 6.8 percent 20 years coupled with not consumer-focused fintechs
in April 2022 and continued to only a recent meaningful and lenders that will have a
climb to a 39-year high of 7.7 generational shift in the new opportunity to challenge
percent in May 2022. industry—as millennials and Canada’s big banks and will be
digital-native consumers looking to disrupt the country’s
With the unrelenting demand become the primary $1.68 trillion mortgage industry
pushing the average price of demographics for mortgage by focusing on data-driven
homes in Canada to all-time digital mortgages and seamless
por tfo lio + © 202 2 5REINVENTING THE MORTGAGE
homebuying experiences.
Open banking puts consumers in control and
changes how information and data can be
collected and used. Creating a collaborative
financial ecosystem of traditional banks, lenders,
partners, third-party service providers, and
fintechs, the API-driven framework of open
banking will connect the financial services
industry in new ways and provide a new
foundation for banks and lenders to implement
innovative, data-driven, personalized, and
seamless digital banking and digital lending
experiences.
The world has changed in dramatic ways—
consumers and technology have changed—but
somehow mortgages have largely stayed the
same.
It’s time for lenders to reimagine what a
mortgage can be. Open banking doesn’t just
provide an opportunity to automate and
reduce costs—it’s an opportunity to rethink and
ultimately reinvent the mortgage. By shifting the
focus away from mortgage product details and
putting the consumer experience first, lenders
can create digital mortgages and seamless
consumer experiences that focus less on the
details of a product and more on providing a
valuable, extended digital experience designed
for today’s homebuyers.
Welcome to the homebuyer’s journey.
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REINVENTING THE MORTGAGE
SIX KEY ELEMENTS OF BUILDING AN EFFECTIVE DIGITAL
HOMEBUYER’S JOURNEY IN AN OPEN BANKING SYSTEM
W
hat role does a mortgage play in the buyers becomes one piece of a broader business
journey to homeownership? That might narrative. One that begins long before potential
be the most important question for consumers even enter the mortgage origination
lenders considering a consumer- process. There are considerable
centric digital mortgage solution “As Canada starts to opportunities for lenders to
within an open banking system. adopt an open banking leverage embedded solutions
Traditionally, mortgages framework, the lending and APIs to architect a better
have been a critical step in industry has the homebuyer process.”
the homebuying process, but potential to innovate and
securing a mortgage is not where transform, particularly Although every lender will
the homeownership journey for lenders that are be different, there are six key
begins. In order to reinvent committed to leverage elements lenders can focus on
the mortgage for digital native APIs that offer faster when building out a seamless
consumers, lenders must rethink and richer digital-first digital homebuyer’s journey in an
the entire customer journey—and mortgages.” API-driven open banking system:
the ones that start at the very
beginning have an opportunity to build trust 1. Eliminating time-consuming and costly
with consumers long before those consumers are manual processes that negatively impact
even ready to own a home. consumer experience
“As Canada starts to adopt an open banking 2. Providing an entirely digital frontend
framework, the lending industry has the solution through development or
potential to innovate and transform, particularly partnership and API integrations
for lenders that are committed to leverage
APIs that offer faster and richer digital-first 3. Automating data-entry to streamline
mortgages,” said Gary Schwartz, President of the origination, application, and underwriting
Canadian Lenders Association. “It’s a change in processes
technology, but it’s also a change in the way we
see the buyer’s journey. The traditional mortgage
and the processes lenders use to originate home
por tfo lio + © 202 2 7REINVENTING THE MORTGAGE
for a consumer to choose one While this task
product over another. After all, is required to
every applicant must follow balance risk
the same onerous process and ensure that
no matter where they go, a particular
4. Leveraging APIs to collecting the same personal applicant is
integrate with other financial information and suitable for
banks, financial often experiencing a similar a particular
institutions, and key disconnected and fragmented product and meets the needs of
industry providers origination journey. As a result, the business, it’s an approach
the best mortgage for any that often creates an experience
5. Extending the consumer is almost always that prioritizes the needs of the
homebuyer’s journey the one with the lowest rate. product over the needs of the
beyond the traditional Although rates will undoubtedly consumer.
mortgage process continue to play a vital role
in a consumer’s choice for a Although collecting that data
6. Improving financial mortgage, it’s not all about is crucial to the mortgage
literacy to build trust and rates, anymore. origination process, in an open
brand loyalty by providing banking system it’s a task best
value throughout—and An exceptional digital left to APIs, digital interfaces,
beyond—the entire experience from a trustworthy automation, and backend
mortgage lifecycle. lender—one that also adds technology.
value through ongoing
A SHIFT IN financial literacy and creates an This change in perspective is
PERSPECTIVE & THE informative digital homebuying an important consideration
EVOLVING ROLE OF experience that extends beyond because it’s the foundation
FINTECHS IN DIGITAL the mortgage process—could of many lending fintechs that
MORTGAGES AND be a key deciding factor in a will be looking to disrupt the
OPEN BANKING consumer’s decision when traditional mortgage lending
choosing a digital mortgage. industry as we shift to an open
A
sk yourself this: If every banking system.
mortgage from every When it comes to digital
lender was offered at the mortgages, though, some Fintechs play an important
exact same rate, what would lenders may find that a role in digital lending within
make your mortgage product fundamental change in an open banking system.
better than a mortgage product perspective is also required. In Focusing on providing
offered by another lender? the past, traditional mortgage personalized, innovative
lenders have typically focused digital experiences, they
When it comes to mortgages, on a product-centric approach typically act as intermediaries
there’s seemingly very little where they ultimately prioritize between consumers and
room for differentiation the collection of personal lenders or other financial
between products. That means information and financial data service providers. They put
apart from interest rates, there that’s necessary to meet the consumer expectations around
is often little to no incentive requirements of a product.
8 p o r tfo l i o + © 2022REINVENTING THE MORTGAGE
lenders to create or streamline • Deeply understand the
the development of their own customer | It’s critical to
digital experiences through focus on the customer
API integrations. first, not the product.
While fintechs are often • Identify critical gaps
seen as competitors, that’s & problems with the
digital technologies and digital not always the case, and traditional mortgage
financial experiences first and they could become valuable experience | By intimately
offer cloud-native, data-driven strategic partners to the understanding the
agile modern platforms that right lenders. A partnership challenges of purchasing
can communicate through approach could help some a home and securing a
APIs with pre-existing loan lenders, including B-lenders mortgage, lenders can
origination systems and and alternative lenders, identify key gaps to
core banking legacy systems expand their businesses and improve the mortgage
to create seamless digital meet consumer expectations lending experience.
experiences that can bring the around digital mortgages and
consumer mortgage process digital lending experiences. • Simplify the mortgage
into the current century. process & focus on needs
Much like how some of of the consumer | Closing
Many digital lending fintechs Canada’s largest fintechs gaps and solving common
in Canada are not currently and neobanks have been consumer problems in
mortgage lenders themselves, partnering with licensed the traditional mortgage
but rather they act as financial institutions to process will help create
brokerages—but that is likely bring their own services a frictionless, cohesive,
to change as more emerge, to market, there are some and predictable digital
grow, and explore acquisition similar, potentially disruptive experience for digital
opportunities to expand their opportunities ahead for native consumers.
businesses. current lenders willing to
partner with the right fintechs • Leverage APIs &
The role of fintechs focused on on digital mortgages. Automate Manual
digital mortgages in Canada’s Processes | Leveraging
open banking system is not Whether or not they choose APIs will help lenders
just evolving—it’s really just to explore unique partnership eliminate manual
emerging. Although it’s possible opportunities with emerging processes that negatively
fintechs may begin fintechs, lenders focused on impact consumer
to challenge larger building digital mortgage sentiment and will provide
traditional A-lenders experiences focused the necessary data to
in the future, some on creating a seamless improve automation
fintechs may homebuyer’s journey throughout the mortgage
also provide can benefit by thinking lending process.
entirely new like fintechs and building
opportunities solutions around some key
for traditional strategic concepts:
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BUILDING A SEAMLESS DIGITAL
HOMEBUYER’S JOURNEY
ELIMINATE MANUAL financial data is the first step risk assessments, and their
PROCESSES to streamlining the origination underwriters don’t have access
IN MORTGAGE process, and it will be the to important personal financial
ORIGINATION foundation for creating a data that allows them to make
frictionless frontend digital informed decisions about an
R
einventing the mortgage solution that digital native applicant’s ability to make
by reimagining how homebuyers want to use. payments.
inefficient traditional
mortgage lending processes So, how do lenders eliminate all The manual processes that
can be adapted to create a those time-consuming manual are often used to collect this
seamless digital homebuying processes? information are some of the
experience begins with an first interactions consumers
understanding of how each step It starts with automation. have with their lenders or
of the mortgage process can be brokers, and they often set the
broken down, simplified, and PROVIDE A SELF- stage for the overall mortgage
automated. SERVE DIGITAL lending experience. The
ORIGINATION collection of data in this stage
Lenders focused on creating EXPERIENCE of the homebuyer’s journey
a true digital mortgage should be as smooth and
C
experience in an open banking ollecting personal seamless as possible, and to
environment will want to information and key meet consumer expectations
leverage data and technology financial data from in this area of the mortgage
in ways that eliminate many applicants to assess their process lenders are required
of the manual processes creditworthiness is, without to find a way to make this
traditionally performed by question, one of the most experience completely digital.
mortgage specialists, brokers, important aspects of the
and underwriters. Eliminating mortgage lending process. Consumers should have
manual processes that center After all, without this data the ability to self-serve and
around the collection of lenders can’t originate complete the application on
personal information and applications or perform proper their own time, in the comfort
por tfo lio + © 202 2 10REINVENTING THE MORTGAGE
validated data. A clear user background,
interface will also help set requiring
expectations for next steps lenders to
in what can often feel like a collect financial
convoluted and fragmented data including
mortgage process. This kind proof of income,
of experience can provide paystubs, T4
of their own home. In this digital lenders with enough slips, credit
space, they can actively seek information to offer applicants reports, and proof of down
out the information digital pre-qualifications, pre- payment.
mortgage providers require as approvals, or rate-holds within
they apply, allowing them to minutes. While some that client data
complete an application in a is often already available in
fraction of the time. Digital lenders that provide financial systems, it’s not
a self-serve origination and integrated across systems in
Providing a quick digital application process guided a way that allows consumers
questionnaire, digital lenders by user experience-driven to quickly share their data
can quickly collect enough questionnaires can also between financial service
information about applicants leverage digital dashboards providers.
to understand whether they where potential homebuyers
are in the purchasing journey. can manage their information, Fortunately, open banking
Lenders can quickly gather upload electronic documents, puts consumers in control
information about who their and even sign documents of that data, and with their
applicants are, whether they’re electronically where necessary consent they can allow banks
first-time homebuyer, what to ensure the process is entirely and lenders to both share and
location they’re looking to buy, digital and seamless. access that data in order to
whether they’re working with provide services like mortgage
a realtor, what kind of property PREFILL AND origination. Leveraging
they’re looking to purchase, AUTOMATED APIs, banks and lenders can
and even whether they’ve MORTGAGE communicate with external
signed a purchase agreement. APPLICATION DATA systems to securely access
and retrieve this key data that
W
Integrating time-consuming hile every lender can then be used to prefill
data-entry processes into is different, many fields and automate portions
an app-based, self-serve lenders require of the origination process,
digital experience designed the same information from eliminating manual data entry
for consumers will not only mortgage applicants during that’s required in mortgage
eliminate internal processes the origination process. This applications and underwriting.
that contribute to negative includes the collection of basic
experiences, but it will also client data like an applicant’s When it comes to APIs and
result in cost efficiencies for contact information, telephone accessing external data,
lenders, faster pre-approvals number, and home address. lenders will want to focus
and application processing It also includes a review on efficiencies that leverage
times, and more accurate and into an applicant’s financial the ability to prefill data and
11 p o r tfo l i o + © 2022REINVENTING THE MORTGAGE
to connect, integrate with • Home insurance
external systems, and explore
partnerships and technologies • Mortgage default
within a secure framework built insurance
around consumer consent.
• Property valuations
LEVERAGE KEY APIS
automate the origination, & INTEGRATE WITH With open banking, digital
application, and underwriting INDUSTRY PARTNERS mortgage lenders have an
processes as much as possible. opportunity to leverage APIs
W
Whether a lender chooses to hile a significant in entirely new ways—but
develop or integrate with a portion of the this often requires thinking
provider of what is sometimes digital mortgage outside of the box to discover
referred to as mortgage process homebuying journey requires innovative ways of leveraging
automation technology, one of lenders to collect information technology to eliminate time-
the most impactful tactics in electronically through a digital, consuming or complex tasks.
digital mortgages is the ability self-serve app that focuses
to request, access, and leverage on UX-driven questionnaires By integrating with artificial
data from other systems or and automation, digital intelligence solutions through
third-party applications. lenders can further improve APIs, for instance, digital
the homebuyer’s journey by lenders can even collect unique
Of course, that level of leveraging APIs to integrate information on properties that
integration may not be possible with key industry partners and would otherwise need to be
for some digital lenders at first, providers. collected in person, including
and it may take some time information about things like
for open banking providers Leveraging APIs, digital lenders landscape and topology, road
to leverage APIs in a way that can request data from external noise, and other information
ultimately optimizes their own service providers or integrate unique to the community that
digital solutions. The exciting services at key moments within may affect a home’s value.
part is that APIs and an open the homebuyer’s journey. By
banking framework can allow retrieving information from EXTEND THE
digital lenders to integrate with external systems, lenders can HOMEBUYER’S
financial service providers to offer things like homeowner’s JOURNEY BEYOND
retrieve client data and provide insurance at the ideal moment THE MORTGAGE
innovative digital mortgage in the homebuyer’s journey. PROCESS
origination solutions for
W
homebuyers. Other key API integrations for hile the mortgage
digital mortgage providers process itself is one
Depending on a lender’s ability include: of the most lengthy
to develop solutions in house and significant aspects of
or their openness to work with • Credit bureau reports the homebuyer’s journey, it’s
external fintechs and third- not the only area mortgage
party developers, open banking • Title insurance lenders should consider when
provides an opportunity designing new digital solutions.
por tfo lio + © 202 2 12REINVENTING THE MORTGAGE
In order to truly reinvent the with a savings goal. So, before
mortgage, digital mortgage customers even begin looking
lenders should look outside for a home, digital lenders
of their traditional role and have an opportunity educate
consider extending the digital those consumers, create digital
homebuyer’s journey beyond experiences that help them
origination, funding, and manage money and save for
servicing. this financial milestone, and
build financial literacy around
Remember to ask yourself this: the homebuying process that
When does the home buying extends beyond the mortgage
journery really start? into real life.
By the time prospective When lenders can educate
homebuyers are searching consumers and provide insight
for a home, they’ve already and digital tools that help
succeeded in achieving a potential homebuyers reach
financial milestone on the path this critical financial goal,
to homeownership. Despite the they not only improve lead
fact that mortgage applicants generation, but they also build
are required to have a minimum trust with their audiences, and
down payment, mortgage they are likely to be viewed as
lenders generally don’t offer a trustworthy, reliable brand
consumers digital experiences when consumers are finally
built around helping those ready to purchase their home.
potential homeowners save
for a down payment. This is
a missed opportunity where
lenders can build trust and
brand recognition early in the
intake and lead generation
funnel though extending the
homebuyer’s journey.
BUILD TRUST & ADD
VALUE THROUGH
FINANCIAL LITERACY
T
he homebuying
experience doesn’t begin
with a rate-hold or a
mortgage application or even
the search for a new home. The
homebuying journey begins
13 p o r tfo l i o + © 2022REINVENTING THE MORTGAGE
THIS IS JUST THE BEGINNING
THIS IS JUST THE BEGINNING ecosystem. As a result, financial technology
FOR DIGITAL MORTGAGES AND and banking software providers are likely to
OPEN BANKING find themselves playing catch-up well into 2023
and 2024 in order to redesign and develop new
F
rom modernization and digital mortgage solutions focused on providing a
transformation to cloud migration seamless digital homebuyer’s journey. For some
strategies, financial technology and core of these financial technology providers, a trusted
banking providers—including those that offer digital mortgage solution may take more time.
traditional enterprise mortgage software—have
been juggling multiple complex large-scale Fortunately, open banking will provide
initiatives to support financial institutions and traditional banks and lenders with even more
lenders in preparation for a paradigmatic shift to opportunities for developing new and innovative
open banking in Canada. Already implemented digital lending solutions, since those APIs
in other international jurisdictions, including will allow for fintechs to build applications
the UK and Australia, an open banking system— and services around financial institutions
also known as consumer-directed finance here and integrate with some of those time-tested
in Canada—will promote competition and traditional mortgage and lending systems.
consumer choice in the financial industry and
allow Canadian consumers to easily transfer their ADAPT, RETHINK, AND REINVENT
financial data between financial institutions,
W
service providers, and third-party fintechs. But hile digital mortgages can significantly
there’s still work to be done. reduce costs and improve efficiencies for
lenders, that’s not the problem lenders
As banks begin their monumental shift to the are trying to solve. Remember: Mortgages aren’t
cloud in preparation for open banking, their perfect. Consumers expect more, and in open
financial technology and core banking software banking lenders have an opportunity to adapt,
providers are creating application programming rethink the mortgage process, and reinvent the
interfaces (APIs) and critical API endpoints that mortgage.
will provide the foundational technology to
allow for secure data sharing in an open banking
por tfo lio + © 202 2 14REINVENTING THE MORTGAGE
The traditional mortgage
lending experience has not kept
pace with changing technology.
Reinventing the mortgage
isn’t about digitizing current
mortgage lending practices,
processes, and products. It’s
about designing around the
homebuyer’s journey and
building a digital solution that
eliminates manual data entry,
leverages APIs, automates
underwriting processes, and
includes seamless digital
interfaces and experiences
that simplify the homebuying
process for the digital native
consumer.
It’s time to reinvent the
mortgage.
And it starts with rethinking the
homebuyer’s journey.
15 p o r tfo l i o + © 2022REINVENTING THE MORTGAGE
ABOUT PORTFOLIO+
*Based on TSE market
Portfolio+ Inc. connects financial institutions capitalization
with customers and partners using innovative figures retrieved in
September 2020.
technologies. Its core banking software solutions
and open banking technology are used by
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With its powerful +Open Banking Platform and
fully documented RESTful APIs, Portfolio+ has
the power to connect banks, credit unions, and
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everyday customers in control of their financial
data.
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For more information, visit portfolioplus.com.
por tfo lio + © 202 2 16REINVENTING THE MORTGAGE
SOURCES
1. https://www.canada.ca/en/department-finance/programs/consultations/2021/final-report-
advisory-committee-open-banking.html (Retrieved January 7, 2022)
2. https://www.cbc.ca/news/business/crea-housing-february-1.6385274 (Retrieved June 2, 2022)
3. https://www.cbc.ca/news/canada/photos/canada-real-estate-prices-scroller-1.6004260
(Retrieved June 2, 2022)
4. https://www.crea.ca/housing-market-stats/national-price-map/ (Retrieved June 2, 2022)
5. https://www.cmhc-schl.gc.ca/en/professionals/housing-markets-data-and-research/housing-
data/residential-mortgage-industry-data-dashboard (Retrieved June 15, 2022)
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