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SOA AND YOUR LOS
What is it, what does it do, and what impact will it have on you?
Written By: Dynatek, Inc.
Recently it seems like everyone has been talking about Service-Oriented Architecture (SOA) as if it was a new silver bullet. While the concept isn’t new, the desire for seamless integration, reduced overhead, and technology advances made this topic even more popular in recent months. SOA has become such a necessity that companies such as Microsoft, IBM, Sun Microsystems - all the big players - are focused on implementing it. But why? What’s the big deal about SOA and why is it so critical to the mortgage lending community? In this whitepaper we will attempt to explain what SOA is, what it does, and what impact it will have on you. But before we begin, let us first take a look at the history behind SOA and how it came to be.
Beginning in the 1980’s, across all industries, the main focus of using computers and technology was to make people’s jobs easier. Software applications helped to facilitate this goal by providing the tools needed to automated day-to-day tasks. In the years that followed, these applications continued to grow in numbers, as well as capabilities and functionality. The problem was that these separate systems could not talk to one-another. A single company would often have several software applications in use, yet not were able to share information, or at least not well. As technology became more sophisticated, as did the user, companies began to demand more from their software applications. They wanted interconnectivity between systems.
As companies worked on how to solve this internal issue, it was only natural to look at how they worked shared or exchanged information with external applications and other companies. One solution included hiring a large IT staff or using a middleware company to create and/or support the exchange of information between their systems and outside companies. And while this was a viable solution, it meant custom programming, cumbersome maintenance, and high cost for the lender. Large companies could absorb the cost and burden easier than small ones, which were simply left to be less efficient and competitive.
By the mid-90s, while the translation and exchange of data was still a large problem to be dealt with, it was getting easier. Some savvy software providers had recognized the problem and were seeking ways to ease the burden and provide a solution within their own software application, and some industries were taking matters into their own hands. In the mortgage industry, things took a turn for the better in 1999 with the formation of MISMO. MISMO’s was established by the Mortgage Bankers Association (MBA) to coordinate the development and maintenance of Internet based Extensible Markup Language (XML) real estate finance specifications that everyone in the industry could understand and use. Non-technically speaking, the mortgage industry is already composed of a number of services that are performed by separate companies, such as credit reporting, appraisals, flood insurance, mortgage insurance, etc. In the ideal free market, countless providers sell interchangeable services, fair competition abounds, and there are no barriers to entry. The MISMO movement inside this industry represents a utopian situation in a free market because it allows everyone to speak the same language. This creates an environment where each company that provides a service is interchangeable and can compete evenly. This is where SOA comes in to play.
According to www.service-architecture.com, SOA is essentially a collection of services. These services communicate with each other. The communication can involve either simple data passing or it could involve two or more services coordinating some activity. Some means of connecting services to each other is needed.
SOA can’t succeed outside a service-oriented marketplace, and the mortgage industry has a number of services involved throughout the loan process. The “Architecture” in SOA becomes the technical exposure of these services, in a manner that allows the connection to the service to be simple – regardless what type of system is trying to use that service. For example, it has been possible to order a credit report for years, but technology has now streamlined access to the point that you can click a button to request the report (or even automate the process) and suddenly have a PDF in front of you.
There are some other terms have been connected with SOA as they’ve been a part of the technology movement that has made SOA more of a reality. “Open Architecture” has been talked about for years, referring to an application with public specifications and the ability to interconnect. "Web Services" often appears in articles talking about SOA. In today’s Internet-connected world, more and more companies are exposing their services through the Internet, and use Web Services to provide access to their service through a web server. Neither of these terms by themselves ensures nor replaces SOA. A software application or service could be openly defined, but use a unique format that nobody else understands; a Web Service can be undocumented and only used internally.
SOA is the culmination of all these ideals into a solution that is geared towards a competitive free market, where there is a standard way of saving your data, software applications with openly-defined specifications to import and export data (using these data standards), and to have a service-driven marketplace where the services can be freely accessed using the same data standards. These virtually eliminates the burden of exchanging information, both inside an office and with external companies, because the barriers that made it incredibly difficult in years past have been knocked down.
So, what do you need to do to reduce overhead and streamline business? If you’re already using software applications that are built on Service-Oriented Architecture (SOA) like MORvision – there’s little left to do but take advantage of the benefits. MORvision includes an open architecture (known as the Integration Suite) and uses MISMO data standards. It was specifically designed to create unlimited interconnections with external services from business partners and internal systems. Even better, the existing MORvision Plug-In Partner Network includes Plug-Ins to many of the external companies you already do business with – all you need to do is download and install to maximize efficiency. MORvision Titanium will continue to expand these capabilities by enriching the user’s experience while communicating with external services and taking advantage of Web Services to expose MORvision’s service offering.
The bottom line is that SOA is here, it is now, and it is available today in some of the best LOSs in the industry. The companies that offer it are among the best of the best, having the vision to go where no others have gone before. They fully embrace the industry’s long-term goal of having a paperless, electronic mortgage and are making significant strides toward achieving this goal, both within their own software and within the industry. Lenders who embrace the same mindset and partner with these companies will ultimately reap the benefits, distinguish themselves from their competition, and enjoy an increased ROI.
About the author : Founded in 1986 and headquartered in Livonia, Mich., Dynatek has been revolutionizing mortgage automation for retail and wholesale lenders for over 2 decades. Dynatek’s MORvision is a flexible solution that automates everything from point-of-sale and web origination through processing, underwriting, closing, secondary tracking and delivery. Dynatek is attributed with a long list of industry innovations including their award-winning Plug-In Partner Network, which seamlessly connects MORvision users to industry partners with just one click; and their unique Control Center, which offers capabilities for eMortgage, business process management, and multi-client support. With Dynatek’s complete mortgage software solution and multi-faceted approach to customer service, the company has earned numerous industry commendations and the respect of hundreds of full-service financial institutions across the nation. For more information on Dynatek or to schedule a live demonstration, call 800.462.5545 or log on to www.dynatek.com
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