Digital technologies have become mainstream in the current mortgage lending industry. Scores of lenders are leveraging digital technologies such as mortgage process automation to make mortgage processes leaner and more agile.
The primary reason for adopting technology is to become more agile. Agility in mortgage processes allows it to adapt to adverse economic conditions such as the ongoing Covid 19 pandemic or socio-political strife that have an impact on mortgage process.
For instance, mortgage process automation aid lenders to overcome capacity constraint. During Covid-19, it helped lenders to handle an avalanche of applications for mortgage forbearance plans as well as mortgage refinance.
Mortgage technologies are used across a wide range of mortgage process steps such as document extraction, indexing, management, borrowers’ income verification, automated compliance, e-closing, and many more. Effective use of technology helps lenders speed up work as well provide borrowers with an Ecommerce-grade digital lending experience.
In this article, we will explore how digital technologies make mortgage process leaner and more agile.
How Digital Technology is Impacting Mortgage Lending Processes
Digital technology is the trump card for modern day mortgage lenders to streamline their processes and facilitate a secured lending atmosphere. Here’s looking at how they are used and their impact on mortgage processes:
Artificial Intelligence (AI)
Digital technologies driven by superior AI and ML algorithms bring transformational changes in lending processes.
It automates labor-intensive and repetitive administrative steps. Executing such steps takes away the focus of staff from other core activities. Such activities include building customer relationship, thorough financial background verification of borrowers, among others.
Lenders get to unburden their staff by introducing AI-driven digital technologies in mortgage processes. For instance, AI-driven chatbots take over a significant portion of customer interactions. Chatbots are programmed to resolve common customer queries. They automatically route complex customer queries to the right department. This reduces the query resolution TAT which ultimately fosters a favorable customer experience.
AI-based predictive analysis allows lenders to get actionable insights into customers. Such insights drive better risk assessment of borrowers. It also helps lenders to curate loan packages that is suited to financial health of borrowers.
AI algorithms such as rule-based approach, supervised and unsupervised ML algorithms, time series analysis, among others are effective in identifying data patterns in loan documents that indicate fraudulent loan application.
Data Science
Mortgage lending industry is blessed with a data goldmine. This data can be effectively used to create customer retention strategies and enhance process efficiencies.
Therefore, data science is critical to extract the true value out of the data.
Availability of abundant data about borrowers allow lenders achieve better risk assessment. It expedites underwriting decisions and help lenders avoid approving bad loans.
Data science capabilities take the prequalification process quality a notch above. It does so by adding additional data as borrower metrics derived from social media, purchasing pattern, credit card usage to the traditional borrower credit score.
Cloud Computing
Lenders require substantial computing power to harness AI and data analytics tools. This stresses the importance of cloud computing in mortgage lending.
Cloud storage allows digital mortgage tools to create a central data repository. This eases access to data required any time for processes like loan documentation, document extraction, income statement verification, and others.
It helps to promote transparency among multiple stakeholders across the lending cycle. They include investors, borrowers, regulators, and lenders.
Mortgage Process Automation
Mortgage process automation is critical in catering customers’ expectations of expedited and hassle-free loan experience.
RPA-driven mortgage automation automates a gamut of tasks involved in documentation, verification, and other labor-intensive tasks.
It enables easy access to data from anywhere. This further simplifies and expedites the entire lending process.
MSuite- A Widely Used Third-Party Mortgage Process Automation Tool
MSuite is an intuitive and convenient proprietary mortgage process automation tool. This tool is powered by advanced AI, ML algorithms, and optical character recognition (OCR).
This tool automates a wide range of mortgage tasks. It plays a critical role in aiding lenders in their shift to the digital mortgage realm. This mortgage process automation tool expedites lending process, drives process efficiency, and unburdens staff from repetitive tasks.
The structure of MSuite is a combination of five different modules. These are connector, indexing engine, data extraction engine, rule engine, and reporting engine. Lenders can use these modules as separate entities or together to execute lending-related tasks.
Here’s a brief summary of the modules:
Connector
Connector enables MSuite to seamlessly integrate to any kind of LOS through APIs. This function has immense relevance for lenders since stakeholders such as investors, title companies, and others may use separate LOS.
MSuite’s connector module makes it easy to extract any specific information from multiple loan documents. It exempts agents from manually combing through documents in search of a particular data.
This module conducts continuous monitoring of hot folder in SFTP. This alerts the tool in case any new document is loaded into an LOS.
Indexing Engine
There are high chances of loan package document quality getting compromised when transferred in digital formats across multiple lending touchpoints.
MSuite’s indexing engine module addresses such document quality issue. This module can process over 350 document types in multiple formats.
A combination of OCR with intelligent ML and AI algorithms empowers MSuite to segregate documents with a scan quality score that can be as minimum as 150 DPI. While doing so, the indexing engine maintains more than 95% image accuracy.
Data Extraction Engine
MSuite’s data extraction engine module unburdens staffs from the tedious task of extracting relevant data from collateral package and other loan documents.
Data extraction engine automatically extracts data points, converts those in digital formats, and stores in lenders’ LOS.
In the process, the data extraction engine ensures more than 98% data accuracy. It includes exception handling for data points that come with an OCR confidence score less than 90%.
Rule Engine
The rule engine module allows lenders to induct different rules such as post-closing audit rules in MSuite.
The module automates QC audits to determine underwriting documents accuracy, loan application completeness, among others.
MSuite manages multiple rules at a time. The rule engine module can be customized every time it is fielded based on individual lender’s process rules.
The rule engine module can be easily maintained. It is automatically updated in line with dynamic lending regulations. This helps lenders to prove their alignment with pertinent rules during regulatory audits.
Reporting Engine
This automated platform furnishes reports that details every step taken and the level of quality maintained at each mortgage lending stage.
Lenders analyze these reports to identify areas that require improvisation.
These reports can also be personalized according to individual lender’s operational requirements.
We Recommend MSuite To Make Mortgage Lending an Agile Process- Here’s Why
The first question that you may ask is why MSuite over other automated mortgage processing tools.
What sets MSuite apart from other tools in the market is it is aligned with the ground reality of the mortgage industry. Most of the other tools are engineered by technology companies based on assumptions on the industry.
We, at Expert Mortgage Assistance have over a decade of experience of serving more than 100 lenders with backend mortgage services. While serving our clients, we had a first-hand experience of processes that are ideal candidates of automation. We realized the kind of cost and time savings, and process efficiency that can be achieved by automating mortgage processes.
We have utilized this experience to develop our proprietary mortgage automation platform, Msuite. Our recommendation of MSuite stems from our confidence about the fact that this tool will level up your lending functions. You will witness considerable process efficiency and acceleration. It caters to modern-age customers’ expectations of a digital and quick lending experience.
An important aspect of MSuite is it is based on an automation-as-a-service business model. You can access this tool within a minimal investment paid upfront. Your usage need not have to be conditioned by a long-term contract.
MSuite seamlessly integrates to your legacy infrastructure. This means that you do not have to make any change in your existing IT infrastructure. In addition, our IT team will take the responsibility of all your customization and tool implementation needs.
Who We are and Why Are We Considered as an Industry Authority?
This article is penned by experienced professionals at Expert Mortgage Assistance, a leading mortgage process automation services provider. MSuite is our proprietary tool which we use to assist lenders execute limitless loan applications in a month. There are several successful use cases of turning processes around by deploying the tool. Read our case studies here.
Contact us to discover how MSuite can expedite and drive efficiency in your current mortgage lending process.
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