Thursday, January 27, 2022

How does mortgage process automation transform lending process?

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The mortgage lending process is driven entirely by federal regulatory framework. The need to adhere to every new and changing regulation makes the process all the more complex and demanding. Mortgage process automation has helped simplify the associated complexities in many ways. It systemizes and synergizes all the steps in the complex lending process flow. Here’s looking at some of the ways mortgage process automation can transform the lending process.

Expedites loan application process- The mortgage process automation roadmap includes creating online customer portals that involves transitioning from paper documents to online electronic forms. This is then followed by introducing chatbots. These chatbots automates a major part of a customer’s query on a loan application, such as retrieving information of the customer from their existing database with the lender. 

Easy adaptability to the existing IT infrastructure- Mortgage specialists have to be trained continuously on changing loan application requirements. However, with robotic process automation lenders can seamlessly integrate their legacy IT ecosystem and function in a seamless way. This has further proved the importance of mortgage process automation to handle a variety of steps to execute the lending process such as document transaction, data entry, sending notifications to customer, and risk management.

Streamlined workflow- A lending process typically involves numerous steps, streamlining which is a real struggle. Mortgage process automation not only establishes a synergy between steps such as document collection, data entry, sending emails, processing, among others, but also accelerates all the steps. A critical advantage of automating these steps is it results in generating and capturing data. Such data can be fed into analytics models to gain actionable insights into the efficacy or shortcomings while executing a particular step. This enables lenders to make necessary improvisations on the go.

Improved fraud detection- Mortgage process automation uses loss origination system. It banks on advanced predictive analytics models to weed out applicants who are too risky to be allowed to take a loan. This entirely automated process helps lenders to determine what loan types require to go under the scanner for fraud analysis. The newest invention in mortgage process automation scans more than 100 million loan applications and establishes links between a vast amount of data. These links help in identifying anomalies and a pattern that establishes risk attribute of a particular application.


Lenders, who have no understanding of data analytics, will find it difficult to leverage automation to its full potential. This is why they should rely on the expertise of third party to deliver mortgage process automation solutions. Finding the right automation solutions partner, setting the infrastructure will take some time and effort upfront, however it will set a lender apart from the rest in terms of executing the entire lending process with accuracy and acceleration.

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