Speed is very important to mortgage lenders today. When buying a home, they want prompt loan approvals and quick fund transfers. They make a beeline for lenders whose mortgage loan processing time is the shortest. Convenience and reliability are important too.
So how do you trim your mortgage loan processing time without compromising on the loan quality? Read on to find the answers.
Ways To Make Your Mortgage Loan Processing More Speedy
1. Automation Of Mortgage Loan Processing.
Manual loan processing takes a lot of time, and are prone to inaccuracies. Mortgage loan process automation is the only way to go if you want your customers to get a quick loan. It uses technology like Artificial Intelligence and Machine Learning. It enables swift document indexing and extraction. Manging rules and generating analytical reports also become easy with automated mortgage processing solutions.
The many advantages of automated mortgage loan processing solutions.
2. Fast Loading of Website
A slow to load website may prevent your customer from taking the next step. They might subconsciously assume that your services may not be up to the mark as well. On the other hand, e-commerce websites that take no more than 2 seconds to load have higher conversion rates.
Thus, in addition to smooth mortgage loan processing lenders have to also ensure that their websites are running optimally. This entails that all your landing pages, web pages, form load fast and are fully functional.
3. Easy Application Path
Customers want to you finish the mortgage loan processing as soon as possible. If your lending process is filled with too many steps or requires your borrowers to fill many information fields, the borrower will get fed up. They may start looking for a mortgage lender with a trimmer borrowing process.
Thus, you must carry a careful audit of your borrower path and omit any unessential step. Similarly, your borrower onboarding process should be free from all cross-selling and up-selling trappings.
Pointers to help you create an optimal application path
4. Informative Publications on Website
When it comes to mortgage loan processing your applicants are good with the idea of pro-active participation. They often look up online for information on loan origination and underwriting processes. Thus, you need to publish such helpful articles regularly. The articles should talk about all the steps in the process and the data they have to provide. You should also mention all the important documents of the loan submission process.
One added benefit of doing this is, it helps you establish more credibility with your customers.
5. Automated Identity Review System
You don’t want a chunk of your loan origination budget to go towards manual identity verification process, which is usually the case. An automated system to review all the applications is great at cutting down costs and process efficiencies. Automated technology ensures efficient rule management, thus improving your compliance standards.
6. LaaS (Logging as a Service) Platform
It is more than ever important for mortgage lenders to upgrade to LaaS platform. The benefits of doing so are many. It will increase your ability to originate loans and bring down operational costs. Laas will also fetch you more revenue, as it will books loans that promise to be more profitable.
The advantages of a sound LaaS platform in mortgage loan processing are:
- It automates the processes of loan origination and account servicing.
- It enables efficient credit review.
- It leads to better compliance
- It facilitates electronic transfer of money for funding accounts and monthly payments.
- It supports omni-channel communications
- It generates consolidated reports from different platforms.
7. Cloud-Based LOS
A cloud-based LOS (loan origination system) will help you in almost every stage of the mortgage loan lending process. Right from originating the loan to post-closing. Further, they leverage AI algorithms to give you the following benefits:
- Faster loan origination process
- Seamless document management
- Improved compliance system
- Picking out the low-risk cases
- Better collaboration between teams
8. Triage Process
When you have a triage process of loan application, you reduce the chances of your underwriter approving risky loans. This is because such a process will use rule-based engine to ensure that complicated loan applications are given to experienced underwriters only. Conversely, the less experienced underwriters will get less-complicated files.
The triage process of mortgage loan processing helps underwriters make faster decisions and shortens the loan processing life cycle significantly.
9. Regular Updates
It is always a good idea to keep the mortgage loan applicant updated about the status of the application. Lack of regular updates will frustrate your potential borrowers, and they may start looking for other options.
Make sure you explain the mortgage loan processing timeline to your borrower upfront. You should apprise them of all the tasks they need to complete and deadlines of doing so. Here are some ways that will help you achieve this:
- Pipeline Visualization tool: It enables the lenders to know the status of their mortgage loan at any point of time.
- Open communication channels: This improves the borrower’s confidence on you as they can ask any question on their mind and receive answers.
- Program loan origination system: This will enable the applicant to get weekly alerts.
How We Assist You in Mortgage Loan Processing
Our mortgage loan processing outsourcing services helps lenders shorten their loan cycles and achieve a competitive edge. We leverage streamlined processes to help lenders reduce their operational costs, and ensure more accuracy in their loan approval processes.
We have highly experienced staff that helps mortgage lenders to expand their operations seamlessly. We have helped several mortgage firms handle 50% more loan volumes in peak seasons.
Mortgage firms of various sizes leverage our mortgage processing solutions to reduce their turn around time by 30%. With the help our of 24×7 mortgage processing back-office support they are able to serve their customers better.
MSuite, our popular mortgage automation tool helps you address your present as well as your future needs. It has a very powerful indexing engine that recognizes over 350 different documents that too of varying formats. Its accuracy rate is up to 95%.
Similarly, it’s data extraction engine helps fetch documents with an accuracy rate between 90-98%. MSuite’s best function is it helps you manage a huge volume of rules seamlessly. It automates tasks like reviewing files and can be customized to meet your requirement.
Who Are We and Why Are We Considered as An Industry Authority?
This article is written by authors at Expert Mortgage Assistance. We are the leading provider of mortgage loan processing solutions to lenders of all sizes. Our mortgage loan processing services include mortgage processing support, underwriting support, closing and post-closing support, etc.
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