Sofia Rossato, an individual with over 25 years of experience in establishing B2B technology companies, currently holds the position of leader and general manager at Floify.
Floify, situated in Boulder, Colorado, is a contemporary loan automation solution under the ownership of Porch Group Inc. This platform facilitates the mortgage process by providing lenders, borrowers, referral partners, and document portals for secure application and communication among various mortgage stakeholders. Loan originators utilize this software to collect and assess customer documentation, track loan progress, engage with borrowers and real estate agents, and expedite loan closures.
In her previous roles, Rossato has held the position of Senior Vice President at Wall Street on Demand, Chief Executive Officer of SnapEngage, a customer communication service, and Managing Director and Chief Operating Officer of the $17 billion finance division at IHS Markit. She also played a pivotal role in assisting Goldman Sachs in the acquisition process of a company.
Recently, Rossato granted MortgagePoint insights into current trends in lease technology and offered a glimpse into the future of the sector beyond 2024.
What can we expect for the housing sector in 2024, and what challenges might arise in the upcoming year? Sofia Rossato: Amid ongoing market challenges, many lenders have adopted a cautious approach with the motto “Survive ‘Til ‘25.” Although there may be signs of quantity improvement by 2024, lenders are likely to still be recovering from the significant quantity declines witnessed during the peak of 20-year interest rates in 2023.
Despite a substantial 33% reduction in the mortgage workforce over the past 18 weeks, challenges such as margin compression and operational success persist. The escalating costs associated with conducting business, ranging from appraisal orders to group buybacks, pose significant hurdles for lenders.
The recent $1.8 billion ruling against NAR, which may necessitate lenders to cover buyer’s agents commissions in addition to the upfront homebuying costs, is anticipated to impact lenders’ traditional referral strategies and the affordability for first-time homebuyers.
Do you foresee a future where artificial intelligence (AI) and machine learning (ML) will replace the human element in the origination process, or will human involvement always be essential? Sofia Rossato: Based on my experience as the former CEO of an AI chatbot company, it is clear that human involvement will remain crucial in the origination process even as AI and ML technologies advance. The complexity of a heavily regulated transaction involving numerous stakeholders makes it unlikely for the entire lending process to be fully automated by AI.
Customers seek a blend of personalized interactions and self-service convenience at appropriate junctures. The integration of AI and ML in the origination process aims to enhance efficiency, accuracy, and the overall borrower experience rather than completely replacing the human touch. The goal is to leverage the strengths of human expertise alongside machine capabilities to refine the origination process.
In practice, AI will be integrated at various stages of the loan application process to enhance tasks such as underwriting and insurance processes. AI-powered chatbots can assist users as guides, complementing the efforts of human creators.
Are there any technological advancements in use by the industry to streamline operations that you are aware of? Sofia Rossato: In response to heightened competition from direct-to-consumer lenders and uncertainties surrounding buyer’s agent referral partnerships, many lenders are tailoring personalized experiences to foster deeper connections with borrowers. A shift towards an “own the experience” mindset is on the rise, supported by advanced automation that allows lenders to customize loan pipeline workflows and omnichannel communication based on factors like loan product, consumer requirements, team expertise, and more.
