How Can Mortgage Process Automation Transform your Business Processes?

In the next 5 years, the US banks will contribute one-third of their IT budget to boost their digital presence. Technology will be instrumental in transforming the mortgage industry. Moreover, with a staggering increment in the ratio of the non-traditional lenders, the mortgage lenders have to fight for their sustenance and adopt measures that could allow closing the mortgage within the timeline.

One way to do this is by leveraging the mortgage automation tools that could expedite all the loan lending procedures. In this blog, we have elucidated a few well-researched pointers on how can mortgage automation transform your business process.

11 Ways Mortgage Process Automation Can Transform the Mortgage Industry

1. Facilitate Mortgage Process Reorientation via Robotic Process Automation

   

   According to Fannie Mae, mortgage originators are slowly becoming inactive, 75% are out of business. Thus, the mortgage lenders have to re-orientate their process and adopt other means, like Robotic Process Automation (RPA) to revamp their mortgage process.

   Robotic process automation, which is an intuitive way to leverage technology to capture mortgage process transaction and streamline the mortgage operations. Robotic mortgage process automation in mortgage lending adoption is increasing at a rate of over 100%, which is likely to impact almost all the mortgage lenders in the near future. Thus, it has a great potential to accelerate the loan lending process.

   So, how robotic process automation transform mortgage companies? With RPA for mortgage, you can -

   • Manipulate, store, extract, and process mortgage records and data
   • Analyze your unstructured mortgage data
   • Manage process changes after the mortgage automation for business process is complete
   • Sync the records with the standard data formats, which will boost the file tracking process
   • Communicate with your underwriters, appraisers, lenders, and customers
   • Configure the mortgage software to suit your organization needs
   • Leverage robotic and digital labor in mortgage to track each and every stage of the mortgage process
   • Ensure compliance with all the necessary federal regulations when you opt for mortgage automation for business process

2. Enable Digitization of Back-office Mortgage Process with Tools like MSuite

   

   Automation of a business process is a well-endowed means to tread a step ahead, however, in the mortgage industry, the usage of automated tools is quite less. If you are searching for a tool that can help you provide a true digital mortgage experience to your borrowers, then MSuite is a perfect mortgage automation solution for you.

   MSuite is an automated solution that can cater to your back-office mortgage needs by going through the scanned documents. It can split and upload the images to the designated folders, extract data from various records, perform stare and compare, raise exceptions/issues wherever needed. It is a low per loan cost-saving solution that is designed to automate your entire back-end process while complying with all the federal regulations.

3. Boost Paperless Loan Processing

   

   A recent report from the "Consumer Financial Protection Bureau" has pointed out that the loan transaction time in the case of the electronic closing is substantially lesser than the traditional process. The report also states that borrowers are much happier when they walk away with little to no effort on their part.

   A typical traditional mortgage lending process accounts for 7-8 weeks of processing time. Also, it is a time-consuming, labor-intensive, and risky job. This does not reflect the incompetence of the traditional process rather an urgent need to acquire mortgage automation for business process to achieve digital transformation.

   Mortgage automation for business process facilitates hand-scripted signatures, online transactions, preparation & presentation of loan documents, etc. Hence, by finding the RPA opportunity in mortgage banking, you can reform your paper-laden mortgage loan closing, delivery, and packing process.

4. Significant Drop in Cost per Loan

   

   If you leverage the robotic mortgage process automation in the mortgage lending process, you can evaluate the taxes and legal fees with 100% precision, thereby bringing down the cost.

   • You can reduce around 75-80% of your bank's loan document handling costs by leveraging mortgage automation tools
   • If you leverage the MSuite, you can further reduce the cost per loan by prepping and scanning all the mortgage records into your server

5. Reduction in Loan Processing Time

   

   In the mortgage industry, 60% of the total mortgage tasks are prep tasks, which can be otherwise automated to reduce the processing time. Here is how -

   • You can facilitate the processing time of mortgage loan packets and prioritize, assemble, and collate with an outstanding precision
   • You can make better decisions, auto-validate the mortgage records, thus, saving a significant amount of time
   • You can cut the time spent on documenting and doing other manual tasks
   • Your underwriter can work faster when the documents are collated and fed into the system in an orderly way

6. Lesser Exceptions with Improved Visibility

   

   Manual loan processing for consumers or SMEs can cause exceptions which can escalate your loan lending cost as you have to correct those. Moreover, the exceptions may bring legal complications.

   If you use RPA for a mortgage or choose tools like MSuite to process the loans electronically, you can eliminate the exception to the tune of 90%. This will allow you to future-proof your SMB loan portfolio and cut the risks on the customers. You will also gain better visibility into your loan processing systems and can identify the gaps or the risk areas.

7. Better Customer Service

   

   You can close and process the loans swiftly and provide better service to your customers. Mortgage automation allows you to -

   • Collaborate with your borrowers in a transparent environment, also giving them a robust self-service option
   • Your customers can sign the loan applications instantly when their records get preapproved, thus they do not have to return to your facility to sign the paperwork
   • Your customers can also e-sign the documents from any of your mortgage facility

8. Day-to-day Operation Feasibility

   

   By leveraging the robotic and digital labor in the mortgage process, you can streamline your operation, and help your borrower with online loan procurement. Mortgage automation can transform your day-to-day operation in many ways. A few of them include -

   • Tailor-made mortgage automation software can expedite credit reporting, foreclosure, etc.
   • Loan servicing and approvals will be faster
   • Mortgage loan documents will be digitized, and the software can assess its legitimacy
   • Automatic appraisal can help determine the current market value of property in a matter of seconds

9. Streamlines Process as per Federal and Mortgage Regulations

   

   Mortgage automation can help you develop a streamlined and compliant mortgage process from scratch with proactive measures taken at each rung of the mortgage lending process.

   In the case of underwriting, the documents are directly fed into the mortgage automation systems and are organized as per the needs. This facilitates the compilation of credit reports, income records, tax returns, etc. And when the processes get streamline in an orderly way, you can focus more on the analytical aspect of the lending and closing mortgages, which means, you will have more capability to ensure that all the federal regulations are being followed.

10. Improve Auditing & Reporting

    

    One of the main aspects of leveraging the mortgage process automation solutions is its 360-degree capture capability.

    • You can capture your customers' records (signed and approved) in a web form for your reference
    • If you leverage a solution like MSuite, you can record, safekeep, and reproduce the records and disclosure documents when necessary
    • You can also demonstrate validated files to confirm your process compliance
    • In case of any future auditing, if the need arises, you will have sufficient data to present to the Attorney General

11. Enhance Process & Employee Efficiency

    

    Robotic process automation in mortgage lending has improved the performance of a mortgage lender. With better turnarounds and lesser paperwork, your organization's performance is deemed to improve. Here is how -

    • No manual monitoring required
    • E-signed documents are automatically stored, allowing you to focus more on selling the loans
    • With significant improvement in the loan application filing, you will be exempted from any disciplinary review or audits
    • Your employees will have more job satisfaction

Outsource Mortgage Automation Services to Outsource2india

Outsource2india is one of the foremost providers of mortgage support solutions in India. We leverage advanced technologies, like robotics, machine learning, deep learning, and artificial intelligence to create custom mortgage automation solutions for your back-office challenges. We have 23 years of experience in creating custom software, including document management solution, borrower portfolio software, etc., we have catered to the precise requirements of retail lenders, wholesale lenders, investors, and private mortgage insurance companies. Moreover, we provide mortgage processing support, appraisal, closing support, post-closing, and title support, etc.

With us, you can successfully meet the expected efficiency through the end-to-end mortgage-related operations with RPA. We have a thorough knowledge and understanding of the US federal & mortgage laws and can provide mortgage automation solutions that can transform your mortgage business process and deliver immeasurable value to our customers. Get in touch with us today for a high-performing, compliant, reliable, and cost-effective mortgage automation solutions.