With national mortgage rates at historic lows and homeownership claims on the rise among millennia, there is speculation that we might be looking at another “Scenario of the Roaring Twenties “ when the coronavirus pandemic begins to recede.

That’s why there has never been a more pressing need for mortgage originators to produce better quality loans faster than ever before. Competition among lenders is fierce, and any technology or method that produces better, more accurate, and faster loans is in high demand as demand increases.

Balancing the equation between speed and precision is difficult to do, but it can be achieved by integrating artificial intelligence and machine learning into an already robust loan origination system, and making sure your staff are on board. with new working methods, and they are excited about the potential of technology.

The inefficient and slow nature of traditional mortgages has prompted tech companies to develop nimble mortgage solutions that have the ability to transform the lending process for bankers and loan originators.

Better and faster loans are achieved by creating improvements every step of the way. There is not a single aspect of LOS that can be improved in isolation and which will then transform the whole process. It must be a systemic change that creates efficiency in all aspects.

From quality integration to processing, underwriting, closing and shipping, it’s all interconnected.

Start at the beginning

When mortgage lending is driven by technology, engagement begins almost immediately. Initial documents are identified and filed using intelligent software within moments of receipt. A document indexing and filing robot handles almost all of the initial and tedious work of labeling, classifying and extracting data from documents, which is the stage where errors often creep into the process .

As the matching loan documents enter the system, a cognitive robot should have the ability to:

  • Perform automatic ingestion, classification and delivery of documents in LOS files
  • Update the naming convention of specific documents to include the name of the borrower (s)
  • Automatically create folders in LOS for newly classified document types

AI Foundry CEO Steve Butler explains the core technology behind agile mortgages, saying: “Machine learning, workflow and user-driven business process management technologies are at the heart of our intelligence solutions. exploitable. We can take a document, extract information from that document, and then start an instance of workflow automation or robotic process to automate very manual processes.

This ability has a huge effect on the speed and accuracy of any application. Automation and increased efficiency are manifested in a number of critical aspects of the loan origination system, each of which must be well managed and efficient in order to produce fast and high quality loans.

Integration: This is one of the most critical parts of the process. In order to get a mortgage loan, a borrower must complete an application and provide all required documents to the lender, which then must be reviewed to ensure that they are complete. At this point, a massive amount of new data entering the system needs to be pulled, stored, and verified. During this time, cognitive bots review the application to make sure it is complete and perform a general eligibility audit on the initial application submission. Software that can measure the application against a pre-existing checklist and report any defects early on is a critical part of onboarding and leads to higher levels of customer satisfaction and speed.

Defect management: Of course, there will always be problems in any loan application. With so many variables, document types, and the amount of information needed to process a loan, mistakes will happen. But you can’t let them languish in the system without noticing it. Cognitive bots transform mundane tasks such as data capture, verification and information transfer and reduce the time required and cost of back office processing.

According to ARMCO Mortgage QC Industry Trends Report as of 2019, “24% of all loan defaults are attributed to missing, expired and / or incorrect documents”. This is the kind of information that really slows down the speed and quality of a loan. Defects should be reported early and rectified to facilitate the flow of a loan through the system.

Collaboration: The days when teams emailed each other documents and waited for a response must be well anchored in the rearview mirror. When the whole team is able to work on a shared CRM that shows everyone the status of the request, it becomes much easier to expedite the loan through the system. You should not be held up by someone who happens to be absent or unable to complete a certain milestone. By giving all team members real-time access to the same versions of documents, it eliminates confusion and streamlines communication. As a result, issues tend to be identified and resolved much faster than ever before.

Compliance: The quest for speed and efficiency cannot come at the expense of compliance. TRID regulations have resulted in an increased need for monitoring and, therefore, may result in higher costs built into the loan. This is why the TRID verification robot is so valuable. It works alongside other robots simultaneously, functioning as another layer of security. By focusing on documents such as change of circumstances, closing disclosure, loan request and estimate, and purchase contract, the TRID Verification Cognitive Robot provides another invaluable layer that helps a loan achieve. the milestones that bring it closer to its completion.

There’s no question that automation is transforming the way lenders do business. In today’s market, where volatility and unpredictability seem to be pervasive, these challenges are offset by a lender’s ability to provide fast, high-quality loans that take these risks into account and use technological solutions to manage them. effectively.

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