PERSON OF THE WEEK: Jeff Williams is programmer/API team lead for Financial Industry Computer Systems Inc. (FICS), a provider of in-house mortgage loan origination, residential mortgage loan servicing and commercial loan servicing software. MortgageOrb recently interviewed Williams to learn more about the role APIs play in mortgage process automation and what the benefits are for lenders, servicers and borrowers.
Q: What exactly are APIs?
Williams: An API, or application programming interface, is a software-to-software interface that allows programs or applications to talk to each other without any user knowledge or intervention. APIs can be internal and used primarily within a company, or external and made available to anyone interested in developing an interface or connection to a product or service.
APIs vary in design regarding functionality. An API may be designed to query data or update a database, initiate a process or add functionality to a software application. Sometimes it is easier to use an API than develop new functionality from scratch.
Q: Why are APIs essential to today’s mortgage professionals?
Williams: The mortgage industry is becoming increasingly regulated and complex. One application may be insufficient to meet a lender’s and servicer’s needs. APIs support integrations between software programs, allowing mortgage professionals to create a comprehensive technological ecosystem that supports automatic communication between systems. Increased automation provides a wealth of benefits, including fewer errors, reduced staff hours and monetary costs, and more seamless operations.
Q: What are some of the benefits of APIs for lenders and servicers?
Williams: One of the biggest benefits of utilizing APIs is the workflow automation they provide. An API that connects scheduling software to mortgage servicing software automates common end-of-day and end-of-month tasks, saving time and reducing the potential for human error.
Similarly, APIs virtually eliminate the need to manually migrate and input data between various systems, enhancing data quality and consistency and bolstering compliance. APIs further support compliance by facilitating the scheduling of various tasks to ensure that programs adhere to a certain order and criteria and are run on specific dates to meet deadlines.
Furthermore, APIs enable lenders and servicers to use different platforms to take advantage of the functionality that can most effectively and comprehensively meet their unique needs. APIs let mortgage professionals seamlessly order fulfillment services from various service providers or share data across platforms, allowing users to remain in one system to provide support to their customers.
Q: What are some of the benefits of APIs for borrowers?
Williams: Today’s borrowers desire transactions that are as quick and convenient as possible. By utilizing APIs, lenders and servicers can expedite their processes and eliminate much manual labor, allowing them to more quickly and accurately provide borrowers with the information they need.
For example, instead of waiting up to 24 hours to see changes reflected in their online banking application or servicing portal, borrowers would be able to receive real-time status updates and access to statements and disclosures. The API allows for the exchange of data and execution of programs between applications.
Q: How can mortgage professionals ensure they’re maximizing the functionality of their APIs?
Williams: Most mortgage professionals will benefit from implementing APIs, as APIs can help them more easily build on existing functionality and automate processes to create a custom solution, without the need to switch or upgrade platforms. To see if APIs may be right for one’s business, one should answer the following basic questions:
- Are there any repetitive tasks that my team and I have to take care of every day?
- Is there information I’d like to share with my customers that isn’t accessible in real time today?
- Is there any additional functionality or workflow we’d like to add to one of the applications we’re currently using?
- Would I like to use automation to give my staff more time to better serve the customer?
If a lender or servicer answered “yes” to any of the above questions, the institution would likely benefit from an API.