Over the last decade, the mortgage banking and financial services sectors have discreetly become more and more reliant on software development. Due to the fragmentation of platforms and services critical to loan origination, servicing, and financing, mortgage banking organizations have been forced to rely on their capacity to build software solutions, which has raised their reliance on their ability to produce software solutions. It has become a key element of the industry's tax planning and strategy in this regard, allowing corporations to recover hundreds of thousands of dollars on the money they are already investing through the research and development tax credit.
With over two decades of expertise delivering a variety of cutting-edge loan programs, this mortgage banking firm has developed a reputation as one of the industry's most renowned mortgage bankers. They can create, underwrite, close, and finance loans using proprietary financial software through their countrywide network of branches and loan officers.
This mortgage banking firm focuses on its digital platform to offer reduced rates and costs. This one-of-a-kind software platform necessitated substantial study, development, and testing to guarantee that it could operate continuously having to change the landscape of the mortgage business, from origination and compliance to funding and servicing. They can close loans more rapidly and at a cheaper cost due to the modern processing software and automated underwriting system, furthermore, the software is also vital to the company's capacity to provide an exceptional experience to homeowners.
This business is a proponent of the rapid software development approach. The business developed a high-level framework for the application during the idea development stage, which directed the development process.
They depended on "sprints," or brief rounds of active development cycles that are time-limited. Daily meetings were held during each sprint to keep all development team members informed of their assigned duties. During such sessions, members highlighted hindering impediments and technical issues that would subsequently be handled by persons with the expertise and skillset most suited to offering a solution for the specific challenge at hand.
Whenever a module or platform had been constructed and was available for validation, it was launched into a test environment where it was put through its paces by many departments within the corporation. Frequently, this includes the development of automated testing scripts and the building of tests or simulation environments to allow for the verification and testing of any modifications before their deployment into a live system. Frequently, this validation method uncovered many faults indicative of code mistakes, failed dependencies, or underlying integration or compatibility difficulties. If these issues were detected, the development project was returned to the agile team, who immediately began fixing any outstanding issues. After conducting validation procedures, the program was then placed into a production environment and will be put into operation.
Over four years, this mortgage banking firm received a total of $520,000 in federal and state tax credits. Due to the firm's expansion and ongoing focus on innovation, they currently generate around $200,000 in yearly credit.
Total federal and state tax credits