1. Mortgage Industry Technology
Considerations
John J. Scattergood

2. Discussion Topics
1 Executive Summary
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3 Technology Management Best Practices
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4
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Technology Considerations
4 Biography 5

3. Executive Summary
• Home mortgage lending continues to be profitable against an increase in competition and shrinking margins. Many private
equity firms and individual investors that have remained on the sidelines during the mortgage crisis are now re-entering the
market. Innovation is critical as many of these entities are looking to “disrupt” the market with new partnerships and
technologies.
• Regulatory agencies such as the Department of Justice, Office of the Comptroller of the Currency and the Consumer Financial
Protection Bureau will continue to enact policies that increase the regulatory burden on mortgage originators and mortgage
servicers. The technology per unit cost for mortgage origination and mortgage servicing has increased as much as 4X since pre-
crisis levels due mainly to an increase in costs to remain compliant with new regulations.
• Mortgage originators should take action in the near-term to ensure that the proper foundation is in place in advance of
increased regulatory oversight. These actions should focus on strategic planning, policies, procedures, training, effective risk
and control management and the quality of data that is used to make decisions that impact customers. This should be applied
to in-house IT as well as third-party providers.
• Mortgage originators need to better understand and be positioned for the new digital savvy borrower. These borrowers favor
convenience, simplicity and on-demand end-to-end personalized service. They favor digital touch points and the brick and
mortar branch model is not as important to meet the requirements of this borrower demographic segment.
• However, borrowers (specifically purchase vs. repurchase) view the mortgage process as complex. They continue to show a
strong preference to human touch points throughout the process and are more likely to favor the brick and mortar branch
model.
• A large number of borrowers are expected to re-enter the market over the next several years as they overcome their credit
issue related to a mortgage default during the mortgage crisis peak of 2010-2013 (i.e., foreclosure, deed-in-lieu, short sale,
etc.).
• A well designed and managed strategic technology plan and a well developed technology organization will provide significant
“business value” in terms of company growth, profitability, risk mitigation, customer experience and employee experience.
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4. Technology Considerations
• Strategic Technology Plan and Roadmap – What is the present business model and where does the business plan to be in the
next 3-5 years? A scalable strategic technology plan and roadmap should be developed with business leader input and have a
governance model to keep the plan aligned, on schedule and on budget. Transparency, traceability and sustainability are key
concepts in managing the roadmap.
• Profitability – Total Cost of Ownership (TCO) is a valuable concept but is presently being re-engineered as “Total Cost of
Service” (TCS). Regardless of the financial perspective, technology should be managed as an investment. Integrated with the
budget process, supported by a fact based business case with a 3-5 year net present value and governed against baseline. To
the greatest extent possible, costs should be variable based on volume (i.e., number of funded loans).
• Risks & Controls – Cyber security, litigation and regulation has placed an additional operating burden on companies in order to
avoid reputation and financial risk. The rise in data breach events is likely to continue. An in-house IT operation should have
similar controls in place as would be required of a third-party vendor (i.e., SSAE-16 Type II Audit and controls).
• Customer Experience – Keeping in mind the increase in competition and regulatory oversight, IT should implement solutions in
a manner that consistently considers the customer experience. The traditional human touch points remain critical in addition
to emerging digital touch points. This view should be embedded into the business case for technology refresh and continue
through to deployment. A solid change management practice should be implemented.
• Employee Experience – Not only does this consideration impact employee morale but it will feeds into the overall customer
experience. In addition to honoring the core values of the company, technology should be designed to enhance the interaction
of the employee with the core application. Business involvement, proper workflows, ease of use via smooth integration and
minimizing application defects are a few ways to improve the employee experience.
Each of these areas can be matured in a timeframe and manner that is commensurate
with the business and financial plans of the company
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5. Technology Management Best Practices
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Profitability
•Multi-Year Strategic Technology Plan and Roadmap
•Technology Investment Governance Program
•Scalable Solutions With Variable Cost Structures
•Ranking Against Peer Group Metrics
Risks/Controls
•Best-in-Class Information Security Program
•Risk Management Framework
•Business Resiliency Program
•Adherence to SSAE-16 Type II Audit Controls
Customer Experience (internal and external)
•Architecture and Technology Stack That is Scalable, Nimble and Mobile
•Agile/DevOps Methodologies/Tools to Increase Speed to Market
•Metrics-Base Production Support Model
•Enterprise Change Management Program
Employee Experience
•Performance Management With SMART Goals
•Talent Management and Training to Develop High Potential Performers
•Demand Management to Promote Work/Life Balance
•Technology Solutions That Improve Daily Work Life of Staff
All four areas must be considered in developing a sound strategic
technology plan and driving tactical delivery

6. John Scattergood
Chief Information Officer | Financial Services
Execution driven strategic thinker and thought leader with twenty-five years of experience focused on the intersection of technology and
financial services. Demonstrated experience in the delivery of multi-year technology strategies that support dynamic companies.
Background as a financial services technology professional provides a unique perspectives on industry challenges and trends
Equally adept at technology vision, strategy, delivery and support of enterprise-wide technology. Combine technology knowledge and
business acumen to support strong company revenue growth. Promote best practices to enhance profitability, risk management,
customer interaction and employee experience.
Broad career experience in investment bank, private equity, and de novo operations. Executive roles have produce a unique combination
of Information Technology, Human Resources, Global Strategic Sourcing and Corporate Services. An industry reputation for business
alignment, transformation, enterprise-wide technology and organizational development.
Built or renovated six mortgage technology platforms and organizations with internal rates of return greater than 40%. Directed the
acquisition and technology integration of three mortgage companies. Technology best practices focus on profitability, risks and controls,
customer experience and employee experience.
Track record in assisting companies on implementing multi-year strategic technology plans with measurable results;
• Support company growth, increasing revenue and decreasing costs.
• Deliver leading edge sustainable solutions to solve business challenges
• Develop technology organizations with the culture, skills and tools for effective tactical delivery
• Address legal and regulatory concerns to avoid litigation, penalties and sanctions
• Adhere to the highest level of ethics required of a financial services executive
A graduate of University of Minnesota with a Bachelor of Arts degree in Economics. He presently resides in Dallas, Texas with his wife
Kimberley and has two sons Blake and Nick.
Execution driven strategic thinker and thought leader with twenty-five years of experience focused on the intersection of technology and
financial services. Demonstrated experience in the delivery of multi-year technology strategies that support dynamic companies.
Background as a financial services technology professional provides a unique perspectives on industry challenges and trends
Equally adept at technology vision, strategy, delivery and support of enterprise-wide technology. Combine technology knowledge and
business acumen to support strong company revenue growth. Promote best practices to enhance profitability, risk management,
customer interaction and employee experience.
Broad career experience in investment bank, private equity, and de novo operations. Executive roles have produce a unique combination
of Information Technology, Human Resources, Global Strategic Sourcing and Corporate Services. An industry reputation for business
alignment, transformation, enterprise-wide technology and organizational development.
Built or renovated six mortgage technology platforms and organizations with internal rates of return greater than 40%. Directed the
acquisition and technology integration of three mortgage companies. Technology best practices focus on profitability, risks and controls,
customer experience and employee experience.
Track record in assisting companies on implementing multi-year strategic technology plans with measurable results;
• Support company growth, increasing revenue and decreasing costs.
• Deliver leading edge sustainable solutions to solve business challenges
• Develop technology organizations with the culture, skills and tools for effective tactical delivery
• Address legal and regulatory concerns to avoid litigation, penalties and sanctions
• Adhere to the highest level of ethics required of a financial services executive
A graduate of University of Minnesota with a Bachelor of Arts degree in Economics. He presently resides in Dallas, Texas with his wife
Kimberley and has two sons Blake and Nick.
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7. John Scattergood
Chief Information Officer | Financial Services
Execution driven strategic thinker and thought leader with twenty-five years of experience focused on the intersection of technology and
financial services. Demonstrated experience in the delivery of multi-year technology strategies that support dynamic companies.
Background as a financial services technology professional provides a unique perspectives on industry challenges and trends
Equally adept at technology vision, strategy, delivery and support of enterprise-wide technology. Combine technology knowledge and
business acumen to support strong company revenue growth. Promote best practices to enhance profitability, risk management,
customer interaction and employee experience.
Broad career experience in investment bank, private equity, and de novo operations. Executive roles have produce a unique combination
of Information Technology, Human Resources, Global Strategic Sourcing and Corporate Services. An industry reputation for business
alignment, transformation, enterprise-wide technology and organizational development.
Built or renovated six mortgage technology platforms and organizations with internal rates of return greater than 40%. Directed the
acquisition and technology integration of three mortgage companies. Technology best practices focus on profitability, risks and controls,
customer experience and employee experience.
Track record in assisting companies on implementing multi-year strategic technology plans with measurable results;
• Support company growth, increasing revenue and decreasing costs.
• Deliver leading edge sustainable solutions to solve business challenges
• Develop technology organizations with the culture, skills and tools for effective tactical delivery
• Address legal and regulatory concerns to avoid litigation, penalties and sanctions
• Adhere to the highest level of ethics required of a financial services executive
A graduate of University of Minnesota with a Bachelor of Arts degree in Economics. He presently resides in Dallas, Texas with his wife
Kimberley and has two sons Blake and Nick.
Execution driven strategic thinker and thought leader with twenty-five years of experience focused on the intersection of technology and
financial services. Demonstrated experience in the delivery of multi-year technology strategies that support dynamic companies.
Background as a financial services technology professional provides a unique perspectives on industry challenges and trends
Equally adept at technology vision, strategy, delivery and support of enterprise-wide technology. Combine technology knowledge and
business acumen to support strong company revenue growth. Promote best practices to enhance profitability, risk management,
customer interaction and employee experience.
Broad career experience in investment bank, private equity, and de novo operations. Executive roles have produce a unique combination
of Information Technology, Human Resources, Global Strategic Sourcing and Corporate Services. An industry reputation for business
alignment, transformation, enterprise-wide technology and organizational development.
Built or renovated six mortgage technology platforms and organizations with internal rates of return greater than 40%. Directed the
acquisition and technology integration of three mortgage companies. Technology best practices focus on profitability, risks and controls,
customer experience and employee experience.
Track record in assisting companies on implementing multi-year strategic technology plans with measurable results;
• Support company growth, increasing revenue and decreasing costs.
• Deliver leading edge sustainable solutions to solve business challenges
• Develop technology organizations with the culture, skills and tools for effective tactical delivery
• Address legal and regulatory concerns to avoid litigation, penalties and sanctions
• Adhere to the highest level of ethics required of a financial services executive
A graduate of University of Minnesota with a Bachelor of Arts degree in Economics. He presently resides in Dallas, Texas with his wife
Kimberley and has two sons Blake and Nick.
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