Several mortgage compliance concerns can be solved with technology. One such concern is FHA per diem income. This type of income can be challenging to document and track.
However, with the help of new technology, it can be easy to support a lending process for borrowers who earn this type of income, such as healthcare employees.
The problem with irregular income.
A borrower with irregular income may be asked to provide two or three months of bank statements plus paycheck information. However, FHA loans have stricter lending guidelines because they’re backed by the government.
First-time homebuyers employed in the healthcare industry or other service-related fields often have irregular income. This can make it challenging to get approved for an FHA loan because of:
- debt to income ratio
- not having a stable income history
- the need to incorporate social security benefits
- the need to average qualifying income over a period of six months or longer, for example, two years
The benefits of lender support automation.
Emerging tech can make it easier to track per diem income for borrowers. Here’s how support automation technology can help:
Calculating a borrower’s income source.
When calculating a borrower’s qualifying income, many lenders use an automated support automation solution like Capacity. This type of software can easily incorporate irregular or difficult-to-document forms of income, such as per diem income.
Support automation technology can also help mortgage companies:
- Detect fraud
- Generate reports for management and auditors
- Track payments and deposits
- Verify client information to prevent identity theft
Automating the process to qualify a borrower.
One of the advantages of using support automation technology to manage FHA per diem income is that it can help lenders automate the process. This saves time and ensures that all required documentation is collected and processed correctly. Automation also assists in reducing the risk of errors, which can be costly and time-consuming to correct.
Capacity’s dynamic workflow capabilities also help ensure that all loans are processed in a consistent and compliant manner, avoiding discriminatory practices and assisting lenders to maintain a good reputation with the government and consumers.
Creating secure environments for documents.
Another benefit of support automation is creating a safe environment to store files and data. It’s important to have a knowledge base where all your data is stored for easy, secure access. This means that if something happens to a computer, there’s no need to worry because everything else has already been backed up. In this way, lenders can avoid downtime and continue to process loans as usual.
Staying compliant.
Support automation platforms like Capacity automatically update when regulations are changed. It then makes the updates instantly accessible to loan officers on any team platform like Slack or Microsoft Teams. This ensures that your company is always up-to-date on the latest compliance regulations.
Helping lenders stay organized.
Support automation technology can also help lenders stay organized and efficient. For example, loan officers can create a workflow specific to per diem income borrowers. This ensures everyone involved in the process knows what they need to do and when they need to do it. Capacity’s RPA-powered Workflows tool makes optimizing your organization’s operations simple. Additionally, technology can help loan officers track deadlines and due dates so nothing falls through the cracks.
Capturing and routing new leads with AI chatbots.
One of the compelling features Capacity offers is conversational chatbot functionality. This allows lenders to capture and route new leads with ease.
With a chatbot, lenders can:
- Automatically qualify potential borrowers by asking them questions about their income, employment, and credit history
- Collect all the information they need to pre-approve a loan
- Reduce the amount of time it takes to get a loan approved
- Send relevant forms to potential borrowers
- Enable borrowers to get a quote and pre-approval for a loan without even having to speak to a human being
Capacity’s chatbot functionality is powered by AI and uses machine learning technology, which means it gets smarter with every interaction. This makes it ideal for capturing new leads and bringing them into the approval process quickly and easily.
Streamline the mortgage process.
By using support automation technology to calculate FHA per diem income and stay organized, lenders can make the process smooth and efficient. This will help to ensure compliance with all applicable regulations and minimize the risk of errors.
Technology that can help manage FHA per diem income is essential for lenders who want to ensure compliance with all applicable regulations.
Integrating support automation technology into mortgage companies also streamlines the repetitive processes, allowing borrowers to get approved faster. It’s a win-win for borrowers and lenders!