Cutting-Edge Solutions to Fortify Cybersecurity for Mortgage Lending

Efficient cybersecurity is paramount for protecting any enterprise, but recent high-profile data breaches suggest industries may want to reevaluate their cybersecurity protocol. The healthcare industry reported it experienced over 500 data breaches daily. The mortgage lending industry relies on individual personal and financial data, much like healthcare, and cybersecurity remains at the forefront for its safe business operations.

Software experts continue refining cybersecurity, leveraging Artificial Intelligence and predictive analytics to identify possible data breach threats and address them proactively. National Mortgage News reported one mortgage loan provider experienced a data breach that impacted over 2 million clients. Continued innovation by software solution providers aims to mitigate data breaches and aid the mortgage lending industry as it looks to utilize tech resources to further protect clients and maintain revenue.

New Business Demands, New Security Measures

The mortgage industry enjoyed an unprecedented volume of business and revenue industry experts should have foreseen. Historically low mortgage interest rates and new demands in the residential housing market triggered a seller’s market. Statista reported that over 6 million home sale transactions were completed in 2021, the highest observed since 2006.

Mortgage lenders experienced a significant work volume increase, but pertinent document management was streamlined with new software innovations enabling automation of several tasks. Skilled software developers further enhanced document management programs with Robotic Process Automation and ultimately created Intelligent Document Recognition programs that optimize the data validation process. Applied within cybersecurity, this unique resource can enable expedient identification of suspected data designed to breach security networks. With Freddie Mac reporting fourth-quarter loan originations topping $332 billion in 2022, software resources designed to efficiently process loan originations while securing critical data remain more critical as the industry continues looking to improve its safeguards while driving revenue.

Optimized cybersecurity enables uninterrupted workflow and protection of critical personal and financial data. Software specialists continue utilizing Artificial Intelligence due to its unprecedented data pattern recognition and ability to efficiently process large data sets. Mortgage industry experts have identified wire and title fraud as major contributors to mortgage lending challenges, citing 33 percent of 2022’s first-quarter transactions as fraudulent.

Artificial Intelligence within cybersecurity easily counters e-mail-based phishing scams by scanning communications, looking for consistent patterns, such as proper mortgage lender company logo, and comparing it to graphics within the phishing scam. Additionally, adept software specialists deploy enhanced Natural Language Processing resources to scan language used within cyberattacks and ensure proper company verbiage is being used, as several mortgage lending scams fail to use proper company language within communication attempts, a sure sign of a cyberattack.

Changing Rates Slows Sales but Not Cyberattacks

In response to high demand for housing and lower inventory, resulting in several residential properties being sold for significantly over-asking prices and continued discussions of inflation, the Federal Reserve has once again raised loan interest rates, and current average U.S. mortgage rates are over 7 percent. ATTOM, a curated property data research organization, reported another quarterly decrease in mortgage origination loans, a total decrease of 24 percent from 2022’s third quarter. Despite the significant rate increase and slowing sales, cyberattacks have increased.

National Mortgage News, curating U.S. mortgage and real estate industry data, stated over 1,400 fraud attempts occur monthly. This chilling statistic should give the mortgage lending industry pause and trigger new calls to action. Industry conferences have expressed concerns over expenses associated with overhauling current software-based resources to counter cyberattacks or purchasing new platforms.

Software development experts have solutions to help industry leaders offset expenses by providing Software as a Service (SaaS), on-demand software applications that are centrally hosted but maintained by another party. This strategy provides industries with cutting-edge resources to mitigate challenges and reduce expenses because they are not purchasing the entire platform and are not solely responsible for system maintenance and updates.

Officials Respond to Calls for Cybersecurity Measures

Cyberattacks within several industries continue seeing more frequency as attackers utilize new technology, requiring officials to seek and implement equally powerful responses. The mortgage lending industry is no exception and remains vulnerable to cyberattacks because several parties are privy to pertinent data and private information required to complete all mortgage-based transactions.

The Biden Administration has been pressed to reevaluate cybersecurity measures within several industries carefully. The administration’s adoption of The Cyber Incident Reporting for Critical Infrastructure Act allocates $3.1 billion for programs exclusively dedicated to cybersecurity. This landmark allocation reinforces the belief that Artificial Intelligence and other software-based resources are integral to elevating cybersecurity and optimizing the performances of several industries.

Dedicated software developers have demonstrated the value of successfully enhancing Artificial Intelligence to counter phishing attacks and other cybersecurity threats in several industries. We see its application within the mortgage lending sector as further reinforcement of software development’s integral role in protecting clients, mitigating cyberattacks, and modernizing processes designed to better serve clients.