Maxwell, the fintech mortgage solutions platform, today announced the launch of Maxwell Processor Edge to meet demand from small to midsize lenders as they look to modernize and increase mortgage processing efficiency.
The first-of-its-kind product platform integrates with a lender’s loan origination system, using machine learning to accelerate the document review process and detect data discrepancies before underwriting. The technology also streamlines communication with borrowers and stakeholders to increase processor capacity while reducing costs and loan approval times.
Founded in 2015, Maxwell aims to modernize the $4 trillion U.S. mortgage industry by injecting efficiency and agility into the process. Maxwell’s digital solutions address the entire mortgage process and are exclusively designed for the more than 20,000 local lenders serving communities across the country.
Processor Edge comes at a crucial time as mortgage costs continue to soar. Loan expenses reached a near-record high of more than $8,600 in 2021, squeezing local lenders' already thin profit margins. Increased market compression and rising loan costs mean profit margins will be even harder to maintain in 2022 as interest rates continue to rise and mortgage volumes shift more towards purchases.
"Inefficiencies are holding the mortgage industry back at a time when lenders need speed, accuracy, and capacity more than ever. Manual operations, handwritten notes, and ‘stare and compare’ work have long hindered mortgage processor efficiency, leaving loan files prone to errors and inaccuracies,” said John Paasonen, Co-founder and CEO of Maxwell. “As the market shifts and margins compress, we see a huge opportunity to partner with lenders across the U.S. to enhance their teams’ abilities. Processor Edge will offer technology that streamlines mortgage loan processing, helping these lenders manage the cost and quality of their loan production."
Maxwell currently serves over 300 lenders nationwide and has facilitated more than $150 billion in loan volume to date. Its solutions help loan officers to close 15% more loans each month, while reducing the time to close by over 13 days. The company recently raised $52.5 million backed by Wells Fargo Strategic Capital to further boost innovation and product development.
As one of the largest onshore mortgage fulfillment providers and the only mortgage tech-solutions company built by an integrated team of engineers, mortgage processors, underwriters, and closers, Maxwell takes an agile and nimble approach to responding to market trends and customer needs. The industry has seen net income per loan decrease nearly 63% since its high in Q3 2020, while the cost per loan has ballooned by over 15% in the same period. To combat this trend, Maxwell developed Processor Edge alongside its own processing teams to help lenders lower their costs and improve their margin by realizing a clear increase in the number of closed loans per processor per month. This ability to boost efficiency is key to lender profitability as interest rates continue to climb.
Speaking on the announcement, Maxwell customer Matt Clarke, Chief Operating Officer of Churchill Mortgage, said, “People will always be critical in the mortgage process—but they need to be elevated to managing risks and relationships so they can focus their time and energy on the tasks that mean the most for borrowers rather than entering and validating data. With Processor Edge, Maxwell has created a solution that recognizes this distinction and tackles operational complexities head-on.”
Maxwell continues to be recognized for its innovation and was recently named a winner on the 2021 Deloitte Technology Fast 500 list, ranking as the 65th fastest-growing technology company in North America. Processor Assist represents another step towards Maxwell’s aim to modernize the entire mortgage process from point of sale, onshore contract fulfillment, and fulfillment workflow automation to due diligence, QC, and secondary market trading.