The introduction of AI is set to revolutionize the mortgage lending industry in several ways. As a mortgage loan originator, you can achieve a solid competitive edge by seizing the initiative and adopting a comprehensive, user-friendly AI-driven software program. Automation and machine learning will cause disruption and consolidation in the industry, and you can maximize the advantage by being an early adopter.
A smart AI-backed system can help mortgage loan originators make faster and more effective decisions. This not only helps the lender shorten the mortgage lending cycle and increase their bottom line, but also benefits the borrowers whose chief complaint is the long drawn-out traditional lending process. Speedier closing can allow the lender to process better quality loans in a shorter timeframe and cut down the waiting time for the borrower who is anxious for a loan approval, thus creating a win-win for both sides.
AI Can Help You Make Sense of the Data
In the absence of a powerful AI automated program, it is not possible to manage the increased data volume and perform judicious risk assessment if you want to have a faster loan turnaround. But with AI and machine learning, the mortgage loan originator can make less risky and more profitable decisions at a much faster rate.
ML and AI utilize complex math algorithms to analyze vast amounts of data to train your computer to automatically carry out cognitive tasks, such as prediction, classification, and recommendation. Considering the data-intensive nature of the mortgage lending business, AI integration can deliver excellent value by boosting your lending cycle.
The same AI technology that is being used to power Google Search or autonomous vehicles can be used to eliminate inefficiencies and errors from the mortgage underwriting process. It will also remove the need for repetitive tasks, such as application form handling and document verification. These are rather simple use cases of artificial intelligence, but they hold the potential to cut down the typical closing time by up to 75%, making life easier for both the lender and the borrower.
Enabling a More Rational Selection of Borrowers
Over time, a sophisticated AI mortgage advisor system can help a mortgage loan originator make a more rational assessment of a broad range of borrowers regarding their capacity to repay the loan on time. With this lender’s capability, it will eventually make the mortgage lending cycle significantly shorter. For the industry in general, AI technology is already being perceived as a game-changer because of the low percentage of Americans who are homeowners and the massive long run market potential for new mortgages.
An advanced AI program can immediately identify borrowers who were denied a loan because of an absence of credit history but who can be recommended as candidates for a loan. This is possible because an AI-powered solution can process customer data in greater depth and present a more complete and rational picture of the applicants to the mortgage loan originator.
Increased Borrower Confidence Speeds up the Process
In the early days of AI and ML introduction to the mortgage industry, some observers showed an apprehension that consumers may not like if a lender uses AI to collect or analyze more data on them. However, the actual market feedback indicates quite the opposite. Surveys have found that an overwhelming majority of Americans would be happy to share more personal data and information when they know that the credit decision will be fairer, faster, and removed from human biases.
Consumers also wish that their creditworthiness should be determined more comprehensively, and not just based on a one-dimensional credit score number. These are all areas in which an AI-backed mortgage advisor can facilitate the building of greater trust between the lender and the borrower. When the borrower is more willing to share personal information, and the lender has the machine learning capabilities to swiftly and objectively process that information, clearly it will boost the mortgage lending cycle.
Even after the loan origination, an AI-powered program can help the mortgage loan originator continually assess the financial position of the borrower to predict if a modification of loan terms may be recommended. It can sometimes be more cost-effective than dealing with a default.
FundMore.ai Can Help Shorten Your Mortgage Lending Cycle
At FundMore.ai, we believe that it should not take 7 to 10 days for a mortgage approval. As a mortgage loan originator, you should be able to seamlessly explain all the options available to your customers without even an appointment.
If you are looking to transform your business and get ahead of the curve, it is time to migrate to the FundMore.ai automated underwriting system that will add the power of AI and machine learning to your mortgage lending process. To know more about how our next generation platform can help your business, just complete this online contact form and our team will promptly get back to you.