The Evolving Role of Technology in Mortgage Finance

Abstract:     
This paper surveys the effects of technology on mortgage finance over the period 1990-2000, from an industry perspective. Important innovations in the three functional areas of origination, servicing, and portfolio management are identified and their effects discussed. Improvements in information technology, especially in processor speeds, data storage media, networking, and telephony, have reduced transaction costs, accelerated implementation of new risk management and valuation techniques, increased productivity, and allowed development an entirely new origination channel, the Internet. The interactions of technological change with demographic, regulatory, and market forces will continue to transform the industry.

JEL Classification: G21, R39

working papers series