How Mortgage Process Automation Can Transform Your Lending Business

Mortgage lenders: are you keen to digitize your business processes to adapt to the new normal? Undoubtedly, digital transformation will pave the way for business success; not without opportunities and challenges though.

Here’s the mortgage industry’s take on the digitization of business processes.

According to Infosys, 92% of mortgage providers have experienced a two-fold shift and 20% a four-fold shift to digital transformation. Despite this, the mortgage industry continues to be largely paper intensive compared to other players in the financial services industry. Many functions rely on manual tasks and time-consuming tools.

Repetitive and tedious manual tasks can burden your in-house loan processing team and increase the likelihood of errors. Paper-intensive manual processes not only make it difficult to compete with incumbent competitors and entrants with agile digital processes, but also prolong the closing process.

The lack of digital processes can have a negative impact on customer experience. Customers expect a streamlined lending process and a digital-first borrowing experience. A lengthy loan approval process can result in customer flight. Outdated tools and manual workflows can impact customer loyalty.

The lack of insights and information across platforms will limit your ability to understand your customers and their expectations. What’s more you ask? Redundant tools and workflows slow down your processing capability, eventually impacting business bottom line.

As a lender, you can overcome loan processing challenges with a digital shift. However, even if you integrate digital tools in your workflow, how do you ensure business success? This takes more than just a simple digital shift.

You should reinvent loan processing and standardize workflows with digital tools—that is when the real transformation occurs. The key to reimagine this transformation is through mortgage process automation.

Let’s find out how loan processing RPA can transform your mortgage business.

Mortgage Process Automation: The Meaning

Automated mortgage processing helps standardize workflows. It is a reinvention of tasks allowing you to leverage intelligent technology and combine it with your subject matter expertise to reduce errors, maximize efficiency and speed up loan processing timelines. It also helps you become less resource intensive.

Automation minimizes the day-to-day processing burden on your in-house team by eliminating redundant and repetitive parts of their job. As a result, loan processing becomes convenient, efficient and accurate. Loan processing automation combines artificial intelligence (AI) with machine learning (ML) to offer you insights that not only help predict risks but also make intelligent decisions for your customers.

Automation’s role in modernizing loan processing leaves you to focus on your core competencies and increase loan origination.

The mortgage experience improves not only for you but also for every stakeholder involved in the process.

Automated Mortgage Processing: The Benefit for Lenders

From the lender’s POV, automated loan processing is meant to serve a unified goal: to speed up loan processing, make it convenient and less painful. Let’s take a closer look at the different advantages of automated mortgage processing.

Simplify Loan Application

Loan processing automation can eliminate repetitive or inefficient steps across the loan application process. It helps retain customers and expand your business. You can focus on increasing loan origination and return on investments.

Improve Team Productivity

Automated loan processing lets you have prior access to applicant information and allows data integration to automate the application process. Automated applications can also help your in-house team save time since they aren’t required to do it manually. You can also speed up loan eligibility verification and pre-approvals through integrated intelligence. Subsequently, you can let your team focus on more crucial tasks which require human expertise and provide more value to your customers.

Gain Competitive Advantage

Mortgage process automation not only helps reduce costs but also improves loan quality. You can attract and retain the right talent by providing tools that allow them to upskill instead of being stuck performing repetitive tasks. Subsequently, your staff can create more value for your business and ensure that your customers keep coming back to you.

Automated Mortgage Processing: The Benefit for Consumers

Did you know? More than 45% of banking customers only use digital platforms to interact with their banks. Whether it’s cashier-less checkouts at supermarkets or teleconsultations with healthcare professionals, modern consumers expect quick and effortless interactions with providers.

Robotic process automation (RPA) can deliver a better experience irrespective of how familiar your customers are with digital channels. Let’s look at the benefits for your customers.

Minimal Processing Delays

RPA software can help analyze applicant data and flag any issues. This helps reduce recurring errors in the loan application process. For instance, if the consumer has uploaded an outdated supporting document, the software can prompt them to share the most recent version. It will not only help you, the lender, reduce processing time but also reduce the duration of property ownership for the applicant.

Seamless Experience

According to mortgage lenders in the US, half of the loan applications they receive are withdrawn by customers before closing. Automation can eliminate inefficiencies and guide your customers through a simple and convenient process. They are assisted at every step, helping minimize loan abandonment. The software also allows your customers to apply for a loan round the clock through a device of their choice.

Organized Engagement

The biggest challenge that both customers and lenders face with regards to mortgage application is to organize data. Automation software uses this opportunity to provide a central database where customers can upload documents, review them and track application progress in real-time.

Automatic Validation and Preapproval

Automated loan processing software gives applicants the ability to upload and review their assets and payroll records. This helps eliminate the to and fro of chasing applicant data—including bank statements and insurance documents, to name a few. Old customers can receive preapprovals based on existing information in the database.

Essentially, mortgage automation software can help improve every step of homeownership for consumers.

HelioNext’s customizable mortgage automation solutions can help lenders streamline mortgage loan processing, increase operational capacity and improve business bottom line.

Automate key areas of mortgage processing so that you can focus on what matters most—building lasting relationships with your customers. This way, you can also process more applications in less time.

Get in touch with us today.