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Disruption on the Technology Side

IBM has announced that they are entering the market for mortgage processing automation.  Having worked for large system integrators in the past, it tells me several things:

1. IBM has determined that there is a sizeable and mature market to support their entry
2. They feel current vendors are under serving the market
3. They have analyzed the market and decided that it has consolidated or will consolidate into enough large players to support IBM’s sales and marketing model

If IBM is successful and stays in the market it stands to reason they will eventually expand horizontally into all aspects of the RE process, from listings to closings. 

This a traditional disruption of the market, where a large entrant displaces a number of smaller or less efficient competitors.   The title companies have placed considerable emphasis on the automation market for their continued profitability.  This should definitely give them cause for alarm.