Top 10 Reasons to Automate your Loan Processes in the Mortgage Industry

Loan officers reviewing docs and information needed for loan origination

Manual loan processing in the mortgage industry always tends to be time-consuming, error-prone, and labor-intensive. You’ll need to employ highly skilled professionals to organize, understand, and analyze loan applications without missing anything. As pages of documents come rolling in for processing, human beings can do only so much before productivity flies out of the window. 

Here is where Automated Mortgage Processing steps in to save the situation. By the end of this article, you will appreciate the benefits of Artificial Intelligence and automation in the mortgage industry

1. Improve the experience for borrowers and lenders

In a world where borrowers and lenders expect the mortgage 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

With robotic process automation (RPA), there’s no time off, and you can back up your data for continuous services. Borrowers enjoy timely and smooth closing as the process is always accurate and predictable. 

2. Reduce the cost of processing loans

Automating the mortgage loan processes allows the lender to hire fewer staff members. Additionally, they don’t have to spend more resources, time, and money training them, as the system does the bulk of the work. 

The lender can provide 24/7 support to borrowers without additional payroll costs. Best of all, the AI-powered chatbot works around the clock, doesn’t take a vacation, and doesn’t demand a pay raise or a bonus for excellent performance. 

3. Enhance mortgage process reorientation

Lenders are increasingly using technology like machine learning and AI to improve their processes. This new way of doing things has gained popularity in the industry, as people can now capture and streamline mortgage operations seamlessly. 

  • Analyze unstructured data
  • Sync data with standard formats to facilitate file tracking
  • Configure the mortgage systems to serve your company’s needs better
  • Leverage the digital and robotic labor to track every stage of the process

4. Detect fraudulent activities

With RPA, lenders can now leverage loss origination systems (LOS) to access the buyer’s risk associated with releasing a loan. It employs advanced predictive analytics to configure the type of funding that needs fraud analysis. 

Every lender and customer needs RPA, considering the skyrocketing amounts of fraudulent activities. Unlike human beings, they work quickly to mitigate hacking attempts and eliminate or reduce losses.

5. Reduce human errors

Manual loan processing is usually prone to human errors, whether the work is specialized or repetitive. You’ll need to spend money and time to correct them. While training may help solve this issue, it never goes away completely.

With highly accurate tools and solutions, you can:

  • Eliminate errors 
  • Future-proof your loan portfolio
  • Reduce risks for borrowers

With a mortgage automation platform, your system can follow your standards to give an error-free job within no time. To top it all off, the lender doesn’t need to train and re-train the system to follow the rules. 

6. Easily predict per-loan revenue

With automated mortgage processing, the lender enjoys the ability to predict their revenue streams. Once their system takes in leads, they can determine the likelihood of a lead closing. And once the mortgage processing kicks off, the lender can confidently estimate when the process will mature. Therefore, the system can act as a predictor of future loan income.

7. Provides transparency and insights to brokers

Real estate agents and mortgage companies will want to trust the process when they strive to generate leads. Automated mortgage processing offers exactly that trust, increasing motivation to do more.

It helps them see how mutual clients are receiving services. Additionally, as loans move forward and close as predicted, the brokers don’t miss a step. Therefore, they can better predict what they’ll be taking home as a reward for their efforts. 

8. Boost employee morale

Mortgage automation solutions always result in less paperwork and quicker turnarounds. Here’s what will put a smile on your employees’ faces:

  • Reduced manual loan application filing and tracking
  • Storing of e-signed documents, allowing them to concentrate more on closing sales
  • Minimal or absence of harrowing audits and disciplinary actions due to significant improvements in mortgage loan filing
  • Features like Human In The Loop (HITL) and Live Chats will boost your employees’ morale as they collaborate with the system to answer only the hard-to-answer customer queries.

9. Eliminate technical disruptions

You can get up and running with a mortgage automation platform within 30 days. So if you’re dealing with time-bound operations and legacy infrastructure, rest assured the transition to a modern, versatile system will be quick and painless.

The following are the seamless onboarding steps towards our robust mortgage automating process: 

  • We will set regular meetings to lay out expectations and ensure the project is on track
  • We will prep your team with the vital knowledge they need for integrations
  • Our professional support team will efficiently and quickly load your details and data into the knowledge base to train Capacity
  • Our integration team will integrate your apps to Capacity if applicable
  • Your customer success manager will train your team on the system
  • We will liaise with your implementation team to conduct thorough testing
  • The designated end-users will now access Capacity

10. Improve scalability

Adopting a mortgage automation platform will allow your mortgage company to keep up with the current demand and grow exponentially. Borrowers and lenders expect excellent support and instant answers. Capacity can answer over 84% of all queries instantly without human interaction. Day or night, everyone benefits from accurate answers without the need to hire additional employees

Closing Thoughts

As new demands in the mortgage industry continue to crop up, you need a more robust solution that will keep you a step ahead of your competitors. With Capacity’s mortgage automation platform, you’ll close more loans, faster, at a lower cost. Capturing leads, communicating with them, closing loans, and other important mortgage industry activities will no longer be manual and labor-intensive.

Click the button below to see how AI and automation are revolutionizing the mortgage industry.

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