Dear Mortgage Lenders, It’s Time to Automate

Today's mortgage lenders are faced with more challenges than ever. Business is becoming increasingly difficult due to mounting regulatory and operational changes. On top of that, we are still facing a global pandemic, which forced people to stay at home and do most of their tasks online.

Unfortunately, many lenders still rely on legacy systems and ancient infrastructures, which still use manual processes. This, combined with COVID-19, resulted in small to medium-sized mortgage businesses shutting down.

Lenders spend their time and resources managing repetitive yet straightforward processes that don't yield results without mortgage software.

In this rapidly evolving and customer-driven landscape, mortgage lenders must cater to tech-savvy clients who need information ASAP. Mortgage lenders can address these needs by switching to loan process automation, otherwise known as robotic process automation (RPA). RPA solves these challenges while enabling lenders to improve their processes for a better customer experience.

Through automation, lenders can also leverage advanced mortgage software routines and streamline their operational processes.

Understanding RPA and Loan Process Automation

RPA assigns a software robot-based AI to perform rule-based and workflow-driven tasks. This automation process for mortgage businesses can interact with different mortgage systems without dealing with a system-level process. RPA easily interfaces with current loan origination systems and performs and navigates tasks just as humans would - but at quicker speeds and free from errors.

Loan process automation uses a virtual keyboard for data entry. It also introduces reproduced human thinking to control apps via existing commands.

Why Should You Automate Your Mortgage Loan Processes?

There are different ways mortgage businesses can leverage automation for the benefit of their business without sacrificing quality. Whatever your chosen precision is, the benefits of automation remain the same. Consider the following. 

Enhanced Productivity

Time is always the most valuable resource for most mortgage lenders. Buyers want to secure their homes as soon as possible, and mortgage lenders aim to simplify the process as much as possible. At the same time, lenders aren't big fans of repetitive tasks since it results in shorter timelines and quicker deadlines.

An automated process helps mortgage businesses recover lost times, enabling them to be more productive at processing and closing more applications as soon as possible.

Better Fraud Detection

Mortgage fraud is a steadily rising threat; therefore, lenders must resort to different tactics to prevent fraud issues and the losses that come with them. By using robotic process automation for mortgage businesses, lenders can use Loss Origination Systems (LOS), which utilizes predictive analytics to determine the risks associated with a particular buyer.

Improved Accuracy

Correcting human errors during the loan processing stage can be time-consuming. However, human errors are natural. According to the Institute for Robotic Process Automation (IRPA), humans are likely to make ten errors out of 100 steps in loan processing. The cause? Redundant work.

RPA requires no formal training and produces 100 percent error-free work within a short period. At the same time, automated processes follow established rules.

More Defined and Consistent Workflows

Most lenders will agree that their current processes aren't set up well or adequately defined. There are many variables to consider, from task assignments, document collection, and data entry to email notifications.

RPA simplifies the different processes by enabling you to define and regularize the entire process for better efficiency. Also, as each step becomes automated, you get more data. Searching for loan applications via document management systems simplifies your hunt for essential documents. Finally, the data you gain from the system offers a more in-depth look into your processes, ensuring that you make better decisions.

Enhanced Scalability

Scalability is an essential factor that enables mortgage lenders to embrace automation. To understand the different mortgage documents, you'll need software that helps you with document stacking, data analysis, better classification, and more. These tasks, which aren't easy to outsource, offer scalability, primarily if you use cloud-based software. You can also clone servers in real-time, allowing you to immediately respond to spikes in mortgage demand.

Better Customer Experience

Without automation, processing documents during the loan origination (including the closing) can take at least two weeks to a month, depending on the accuracy and speed of your employees.

Other factors included are the buyer availability and the exact nature of your internal processes. Plus, you have to consider the weather conditions, regional and seasonal holidays, and approval processes. By streamlining your approach, you simplify the house timeline of your clients, which results in better customer satisfaction.

Automation is a lifesaver to the busy mortgage lender. Instead of settling for traditional systems, automate your systems today.