Mortgage technology spending is forecasted to rise 15 percent this year, while technology service providers are expected to have a “good year.”
That prediction came from Mortech LLC.
In its Core Technology and Systems Shopping report announced Monday, the Bend, Ore.-based company said mortgage lenders are expected to spend $4.11 billion on information technology during 2011.
The findings were based on a “stratified random sample” of lenders that originate at least $50 million in home loans annually.
This year’s IT spending projection is more than Mortech’s $3.57 billion projection for 2010. It’s also a rebound from 2007, when IT spending collapsed with the subprime sector.
Mortech LLC, which is not related to the MortgageDaily.com advertiser Mortech Inc., said it has been scientifically surveying mortgage lender behavior each year since 1988.
“Industry spending will not reach the peak spending years of 2005 — 2006, when the level of IT investment was an estimated $4.6 billion,” Mortech President Jeff Lebowitz predicted in the statement. “Now, lenders are catching up on workflow integration and electronic document management. We will see investment, but not much innovation. The industry lags in much talked about enhancements such as straight-through processing, e-mortgage, cloud computing, etc.
“Still, 2011 will be a good year for many mortgage technology application suppliers.”