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Commercial Mortgage Technologies: Automating a Non-Standardized Process

Commercial Mortgage Technologies: Automating a Non-Standardized Process

U.S. lenders will spend more than US$186 million on commercial mortgage technologies by 2008. Approximately 70 percent of the top 100 lenders will invest in new or enhanced technologies during that period.

Boston, MA, July 5, 2006 – In a new report, Commercial Mortgage Technologies: Automating a Non-Standardized Process, Aite Group examines the challenges faced by the U.S. commercial mortgage industry and how technology can address these challenges. The report concludes that the industry is severely under-utilizing technology. As many as 75% of commercial mortgage lenders are still using home-grown-proprietary solutions and almost 75% continue to rely on Excel spreadsheets for sophisticated modeling and cash flow forecasts.

Complex transaction structures and a lack of standardization have slowed down the adoption of technology by the commercial mortgage industry. New market dynamics however, are driving change. Aite Group forecasts that by 2008, U.S. commercial mortgage lenders will spend more than US$186 million on third-party vendor solutions and enhancements (not including servicing technologies), as origination growth and demand for this type of debt increases.

"Factors such as increased competition and a greater demand for Commercial Mortgage-Backed Securities are driving the industry toward greater use of technology." notes Christine Barry, Research Director with Aite Group and author of the report. "Today's solutions not only create central repositories and eliminate manual and costly processes, but they also enable lenders to quickly and accurately generate documents for sale in the secondary market."

The report contains profiles on some of the leading technology providers including: Backshop, CapitalStream, Fair Isaac, Fiserv, Harland Financial Solutions, Midland Loan Servicing, Mindbox and OfficeTiger.

This is a 35-page Impact Report. Clients of Aite Group's Wholesale Banking service can download the report.