An investigation of the business impact of automated underwriting systems on mortgage lenders.

摘要

Implementation of Automated Decision Support has impacted the structure and function of financial institutions, and, in particular, lending institutions since the 1970's (DiGiammarino and Kuckuk, 1991). While studies of Information Technology adoption in the banking industry in general are not uncommon Banker and Kaufman, 1988), Alpar and Kim, 1990), little attention has previously been given to the specific needs of lending operations. Additionally, when such studies have been done, output variables have typically specified at a global organizational level such as Return on Investment.;The current study isolates the impact of Automated Decision Support adoption by using variables closer to the business function where the technology is used. Output variables of interest are: Productivity, efficiency, and asset quality of the mortgage lending function. Data collected from survey respondents highlights the linkage between technology adoption and these measures of performance.;For clearer understanding of research subjects and toward meaningful integration into business value of IT literature, Automated Decision Support Systems used by lenders were divided into four categories: Loan Origination/Workflow Tools, Electronic Verification Tools, Origination Decision Support Tools, and Underwriting Decision Support Tools. Adoption of each technology type was treated as a separate research question.;Much academic and practical study has focused on the importance of re-engineering business processes in realizing the benefits of Information Technology (Sampler and Short, 1994). This literature stream has been incorporated into the research by including questions about adopters 'strategic use' of the technologies they have acquired. Respondents reported the strategic use of each technology they adopted as a proxy for their willingness to modify business structure and function to exploit the technology. The moderating effect between this intent and benefits realized from technology adoption were tested.;The central focus and research question of this study is "How does adoption of Automated Decision Support impact the performance of mortgage lenders?" The results of the study add to several academic literature streams, including: IT and Organizational Performance, Business Process Reengineering, and MIS Research Methods. Additionally, it will be of continuing value to the mortgage lending community by helping them understand the most effective use of investments in Information Technology.