Global technology giant enters U.S. mortgage space

A German software leader is introducing a cloud lending platform in the U.S. mortgage market, partnering with two technology companies to expand its presence in North America.

SAP Fioneer launched the Cloud for Mortgage platform, which aims to serve both nonbanks and depository institutions of all sizes, for use across the entire mortgage life cycle. Based in Walldorf, Germany, the unit of global multinational software firm SAP will work with Blue Sage Solutions to incorporate its loan-origination system within Cloud for Mortgage. On the servicing side, SAP Fioneer is also partnering with Ranieri Solutions to serve its clients and ensure compliance with U.S. regulations.  

"The U.S. mortgage industry has long needed a new approach that enables more efficient and agile operations, setting all players in the market up for success," said Mitch Bouchard, head of SAP Fioneer in North America, in a press release. 

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Over 800 banks worldwide already use SAP Fioneer's platform, with the company seeing potential for its product in the U.S. mortgage industry due to current obstacles businesses encounter at trying to deliver efficiencies and integrate data. 

"The adaptability and resilience of the Cloud for Mortgage platform really is a differentiator," Marcin Krawiec, head of cloud platform products at SAP Fioneer noted. "Through the support of our partners, we will be able to make significant changes and bring innovation to the U.S. mortgage technology market." 

Cloud for Mortgage's arrival in the U.S. comes at one of the most challenging periods home lenders have faced, with the Mortgage Bankers Association forecasting total dollar volume of new originations this year to contract almost 29% to $1.64 trillion from $2.31 trillion reported in 2022. In response, the mortgage industry has seen a wave of mergers and acquisitions in the past several months as well as scores of layoffs, with more needed in the next several quarters to adequately downsize to meet expected demand, according to the MBA. 

But the trade group also said it anticipates a turnaround beginning in the next 12 months, and volumes to begin approaching last year's levels by the end of 2025. 

SAP Fioneer was formed in 2021 as a joint partnership between the international enterprise software provider and Munich-based technology investment company Dediq, with its initial focus on serving banking and insurance companies. The company currently employs more than 1,000 people, with 22 offices in 17 countries. Partner company SAP, meanwhile, counts over 105,000 staff members on its roster and ranks as one of the world's largest software companies.