Industry News

Mortgage cos. increase tech spend

Tech budgets averaged $140 million per company last year

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Mortgage companies spent an average $140 million each on total tech spending last year, according to a study released by the Mortgage Bankers Association. About 67 percent of tech spending went to origination functions and 33 percent went to servicing functions. As mortgage volume eases, company technology budgets over the next few years are expected to focus on loan origination system conversions, consolidations and systems development, the study found. MBA expects technology operating budgets at mortgage companies to increase by 12 percent this year over last year. Tech budgets were up 24 percent in 2003 from 2002. Technology capital budgets increased by 153 percent in 2003 over the previous year and expect to increase by an additional 47 percent in 2004. The commitment to tech spending among the industry's top originators and servicers stemmed from five factors, according to MBA Chief Economist Doug Duncan. "The first factor we see is industry consolidation," Duncan said. Comp...