How new tech aims to make wholesale lending feel like one system
Will Jung (pictured top), chief technology officer at nCino, said that patchwork is the real source of friction in wholesale lending, more so than any single lender’s underwriting speed.
“The wholesale lender technology environment is quite fragmented,” Jung told Mortgage Professional America. “Each lender will have their preferred portals. They’ll have their own processes, different tech stack workflows, and sometimes the lenders have a retail arm versus a wholesale arm. So that creates additional fragmentation. Then the information isn’t always clean. There’s a lot of handoffs, duplicate information requests, a lot of back and forth.”
Overcoming wholesale fragmentation
Jung said that roughly a quarter of US mortgage originations in the first quarter of this year went through wholesale. When there is technology fragmentation, it ultimately impacts the borrower, even though the broker relationship overall gives them an advantage.
“You get the benefits of going through a broker from a borrower experience perspective, but then there’s a lot of handoffs,” he said. “So if I think about that ecosystem experience, how do we make sure you get that seamless borrower experience, which means in turn you have to give a seamless broker experience, which in turn means then from a wholesale lender perspective as well, they all have to go together.”
He said the fix requires rethinking more than just how brokers log into a portal.
