Intelligent Automation
Guide

Intelligent Automation: The Secret to Supercharging Mortgage Processing

 

The Trouble with Mortgage Processing Today

The mortgage origination process is a long, multi-step, highly-regulated process that often has many bumps along the way. Each loan requires considerable documentation—from W2s and bank statements to credit reports, consent forms, and other lengthy information. And when processing a large number of applications each day, the time and effort to manually review these documents really adds up. 

Mortgage processing is a significant strain on limited staff. It’s becoming harder and harder to find quality loan originators and underwriters, and many institutions resort to hiring temporary workers to accommodate spikes in the business. With all the manual effort involved, the entire process is subject to error and delay.

Many institutions are also undergoing digital transformation, incorporating newer, more capable technologies, like eSigning applications. But in the midst of this modernization, there are still multiple legacy systems in use, and getting data from each of them into modern applications is an ongoing struggle.

 

Key Challenges in Mortgage Processing

Key Challenges in Mortgage Processing

Massive Growth Magnifies the Challenges

Massive Growth Magnifies the Challenges

The increasing demand to purchase new homes or refinance in the last year has only added to this pressure. According to Ellie Mae, the time to close a home loan is 58 days on average.

 

A Glimpse at the Mortgage Market

mortgage-market-data

 

In 2020, origination volume reached approximately $3.9 trillion, including a 14 percent increase in new home purchasing year over year and nearly $2.4 trillion of that coming in the form of refinancing. This giant refi-wave has put tremendous stress on loan originators, amplifying the challenges lenders are experiencing.

Automation Handles What You Don’t Love in Banking and Mortgage Lending  

Automation Handles What You Don’t Love in Banking and Mortgage Lending

Each of the challenges described above highlight specific elements within the mortgage origination process that are prime for automation. Now, let’s take a step back for a moment and look at the role of robotic process automation (RPA) and intelligent document processing in banking and in mortgage lending. This will give you a clear understanding of how you can level up and streamline processes using intelligent automation in your business.

Many organizations have started to take low-level, manual tasks and give them to software bots. This increases productivity of staff, reduces costs, and eliminates costly errors. In mortgage processing, this typically includes loan underwriting and loan bundling. And in broader banking functions, software robots can streamline tasks across a variety of areas, including debit or credit card fraud processing, account additions, changes, and closures, KYC processes, ACH stop payment processing, daily/overnight processing, payroll information management, and more. 

While RPA effectively processes structured data, which is organized, quantitative, and searchable, the introduction of intelligent document processing helps extract meaning from unstructured data and documents. The key then to unleashing the power of mortgage processing automation is through this artificial intelligence and unassisted machine learning that can handle the unstructured or semi-structured data often found in mortgage documents. That’s because it calls upon unassisted machine learning algorithms that enable automatic self-learning for previously unseen documents.

Intelligent document processing learns which mortgage document information to capture, getting smarter and more accurate over time. Combining this with a robust classification and categorization engine that leverages AI ensures rapid processing of mortgage documentation, enabling you to avoid manual data entry, decreasing errors, and easily managing mortgage application volume. And more importantly, when combined with robotic process automation, you can supercharge automation capabilities and maintain control of critical information with more speed and accuracy.

Not All Data Is Created the Same

Not All Data Is Created the Same

Not All Data Is Created the Same

 

RPA Excels At Structured Data: Structured data is organized, clearly defined, and searchable, but represents only 20 percent of the data in each company.

Intelligent Automation Tackles Unstructured Data: More than 80 percent of all data within organizations is unstructured. It is difficult to interpret and analyze because it has no pre-defined structure.

Putting It All Together: Intelligent Automation Supercharges Mortgage Processing

Putting It All Together: Intelligent Automation Supercharges Mortgage Processing

Time is money. And that’s especially true in the fast-paced world of banking. Whether a lending institution, bank, or credit union, tedious manual processes are slowing you down from spending time on more value-adding activities, like serving your customers or members more efficiently. The mortgage origination process is a great place to combine robotic process automation with intelligent document processing.

Let digital workers transform this process for faster, more accurate loan processing. How well does it work? One company went from processing 1.5 mortgage applications per day to 8 applications. That’s a productivity increase of more than 500 percent. 

 

What RPA and Intelligent Document Processing Can Do

Leverage intelligent automation in multiple areas to streamline the mortgage origination process.

What RPA and Intelligent Document Processing Can Do

  • Review File Logs and Feed Data Back to Retail POS
    Once an applicant enters his or her loan application information, a software bot can seamlessly gather and download mortgage application data and extra documentation, and then feed the data back to the retail POS.
  • Automate Credit Prequalification Process
    The loan application can be triaged based on the applicant’s FICO score to automate the credit prequalification process. The best scores are routed to the loan officer for fast tracking, while fair scores are sent to the credit department for analysis and poor scores are sent an automatic rejection letter.
  • Create Files and Send Files Securely (sFTP)
    RPA bots can also support in preflight loan processing and take the burden off your loan officers. These software bots can pull key data from your LOS and order necessary services, including credit checks, background checks, and flood certifications. They can seamlessly create files, review files, and securely send files through sFTP.
  • Send Conditional Approval or Rejection Letters
    Once a loan officer approves a loan, software robots can generate conditional approval letters to customers, pulling the conditions and requirements from the LOS. They can even update the retail POS with the new data and status as well.
  • Review Signed Loan Packages and Save to ECM
    When a loan package is signed, intelligent document processing ensures all the critical information is present, including consecutive bank statements and ending balances for closing cost payments. Intelligent document processing can also break the signed loan packet into individual documents and update your enterprise content management (ECM) systems with the information.

Our Intelligent Mortgage Automation Solution

Our Intelligent Mortgage Automation Solution

Working together, Automate RPA and Automate Intelligent Capture empower organizations to apply the best in automation and intelligence for transforming loan and mortgage origination processing. With our automation solutions, you can streamline interactions between critical applications, data entry and extraction, and reporting. Whether or not you use the latest, most sophisticated POS, LOS, and core banking systems, Automate RPA can be layered on top of your current systems to eliminate and streamline the mortgage process.  

Automate Intelligent Capture automatically learns data fields on mortgage documentation by leveraging custom machine learning algorithms without endless hours of building templates. Out of the box, organizations see 70 percent automation, and within just weeks of learning, automation accuracy is at more than 95 percent.

Ultimately, when the data is accurately captured and turned into structured data with Automate Intelligent Capture, Automate RPA can then do its part. And you can be confident that all the loan information is automatically fed into your LOS, compared to existing data, and loaded properly into your document management system. It’s the power of intelligent automation solutions working together that makes it possible to solve your greatest mortgage processing challenges.

Ready to See How Your Organization Can Benefit from Intelligent Mortgage Processing Automation?
Let us show you what’s possible with the power of intelligent document processing and RPA. Request a demo today to see your own processes in action.
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