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5 Mortgage Lending Problems Solved With AI and Automation

by | Aug 3, 2022

Mortgage lenders are constantly bogged down with shoulder taps, repetitive tasks, and other problems that arise during loan origination and servicing. 

AI-powered automation solutions promise to make lending more efficient and streamlined than it’s ever been before, with tremendous potential to reduce closing costs. As AI integrates with more home loan tools like mortgage calculations software or underwriting systems, it will benefit lenders and borrowers.

Take a look at these problems you may have in your business and see how AI and automation technology can help:

1. Lack of digital transformation

While many mortgage companies are starting the digital transformation process, several are not. The future of the mortgage industry is focused on new technology solutions and how consumer enablement will help grow and expand the current market. Lenders who get onboard with digital transformation will reap the benefits.

The Solution

Support automation platforms like Capacity streamline mundane processes and help free up time for lenders, so they can spend more time building relationships with borrowers. Overcoming digital transformation barriers will help improve both the employee and borrower experiences. 

2. Disorganization 

Lenders are spending too much time searching in different places to find important documents and data. This takes up time lenders could be spending doing more important tasks.

The Solution

With an all-in-one knowledge base solution, lenders can easily access data with a few clicks. Effortlessly organize important borrower information and make it readily available for team members. Even better, with intelligent document processing technology, lenders can extract data from physical documents to use in a digital knowledge base.

Pro Tip: IDP Technology can be used on Capacity’s support automation platform throughout the entire mortgage lifecycle. Watch this quick 6 minute demo to learn more!

3. Low borrower satisfaction

Future generations are approaching the home-purchasing age, and they want instant answers to their questions. They want a fast-moving process, but also a personalized experience. With the current system, it’s difficult to accomplish both.

The Solution 

In a world where borrowers and lenders expect the origination process to move quickly, mortgage automation platforms are incredibly beneficial. These solutions allow you to:

  • Speak to customers in the language they can understand through Natural Language Processing (NLP)
  • Capture and route new leads
  • Provide around-the-clock support for sellers, borrowers, and support staff
  • Integrate your customer data and apps into a centralized knowledge base for hassle-free engagements
  • Intuitively automate loan fulfillment and servicing

4. Not investing in cost-effective strategies

The cost to originate is still $9k, yet tech spending is way up. Companies are not buying code, they are buying customers. This is important for lenders to remember – implementing technology is an investment.

According to Freddie Mac, mortgage companies who implement digital technology solutions tend to operate at costs that are $2,200 less per loan, and have production cycles that are 5 days shorter. 

The Solution

Adopting digital automation solutions can save your company time and money, all while closing more loans, faster. While creating a culture of automation can be a challenge, your team will be able to increase borrower retention and satisfaction with new technology solutions.

Pro-Tip: Capacity provides support automation and process automation for lenders. Through support automation, mortgage companies realize a drastic reduction in emails, phone calls and tickets while providing faster response times. Through process automation, mortgage companies reduce the time spent on repetitive tasks and eliminate bottlenecks, freeing up their time for relationship building and revenue generating activities.

5. Wasting time on tedious tasks

For years, mortgage origination involved going through numerous steps to complete the cycle. It starts with pre-qualification, the application process, underwriting, credit decisions, quality control, and loan funding.

All of these steps involved manual tasks for decades, even in the age of computers. Some of those tasks simply had to be done manually with the thought it would help avoid mistakes.

The Solution

No one wants to spend valuable time working on repetitive tasks. Support automation technology can help bridge the gap between manual processes and digital solutions. This includes harnessing the power of AI chatbot and workflow automation functionalities (internally with mortgage brokers and externally with borrowers) so mortgages can get approved in half the time.

How Capacity can help

Capacity is an industry leader in support automation. Mortgage clients leverage Capacity to automate 90% of the manual, repetitive questions hitting their operational teams like scenarios, processing, underwriting, lock desk, compliance and customer support. We help our clients defect low value tasks from their high value resources

Capacity provides support automation and process automation for lenders. 

➡️ Through support automation, mortgage companies realize a drastic reduction in emails, phone calls and tickets while providing faster response times. 

➡️ Through process automation, mortgage companies reduce the time spent on repetitive tasks and eliminate bottlenecks, freeing up their time for relationship building and revenue generating activities.