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How Loan Origination Software Can 5x Your Mortgage Business

CHRIS GRIMES

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The technology-driven world we live is making a profound impact on mortgage lending business. Leading-edge software applications used in loan process automation, also known as Robotic Process Automation (RPA), can cater to the client needs while augmenting revenues many times over and boosting the bottom line.

 

What is RPA?

 

The Institute of Robotic Process Automation & Artificial Intelligence defines RPA as the technology that employees can use to set up a computer software robot. The software robot then picks up and deciphers the applications to process data, trigger responses, and communicate with other systems.

 

The banking industry is always at the forefront when it comes to embracing the latest state-of-the-art automation technologies. With robotic process automation (RPA), mortgage lenders can replicate routine processes without any constraints of the type of the associated system. For example, the software bots can access the loan origination system (LOS), open spreadsheets, and dispatch emails. 

 

Benefits of RPA interface with the Loan Origination Software

 

Enhanced Accuracy

 

According to the Institute of Robotic Process Automation (IRPA), human errors can be as high as up to 10 percent in the mundane and repetitive tasks that form a large part of the loan approval processing. Mortgage lenders must start using RPA to automate their loan disbursal processes to boost efficiency and reduce time-consuming human errors.    

 

Robotic process automation can take care of repetitive tasks while working seamlessly with the current systems. They help to cut down on both the time and the mistakes, resulting in improved efficiency and accuracy.  

  

Increased Productivity

 

Time is of the essence in the mortgage lending process. Borrowers want their loan approval as quickly as possible to be able to purchase a new home. 

 

At the same time, mortgage lenders want faster turnaround times on loan disbursals without making the entire process too tedious for their customers. Repetitive tasks that eat into the productivity of lenders are the thorn in the side of a loan approval process. 

 

With greater automation in the mortgage loan process, lenders can manage their time more productively. It is a solution where everyone benefits; the borrowers enjoy a smoother application process, and the lenders can close more applications within a given period.  

 

Smoother Customer Interface

 

The entire loan disbursal process can be tedious and protracted. Starting from loan origination to loan approval, and the loan closing; several variables need to function properly for the process to work in an efficient manner. 

 

Buyer availability, the strength of the lender’s internal processes, the pace and precision of the employees; all count towards making the mortgage application processing smoother for the borrower.  

 

Automated processes working error-free round the clock have the potential to make the entire customer experience smooth and seamless. 

 

Reduced Risk of Mortgage Fraud

 

Mortgage lending is prone to the risks of fraud that has seen a steady rise. Lenders need to be vigilant constantly to be able to keep the losses due to fraud, under control. 

 

The loan origination system (LOS) can interface with RPA-based fraud detection applications. These applications use advanced analytics to help predict the propensity of risk in a loan disbursal. 

 

Lenders can easily set up well-defined instructions and the automated process takes care of fraud analysis to help mitigate losses.  

 

No Disruption to the Existing Systems

 

Initiation of the RPA is achievable with minimal interruption to your workflow and the legacy infrastructure. This is a big advantage for an industry with strictly time-bound processes.

 

All the lending processes like data extraction and management, consolidation of repetitive tasks, and data verification, can be automated with the RPA working in tandem with the loan origination software without any disruptions.  

 

Comprehensive Audit

 

Simultaneous automation of all the processes involved in your mortgage lending business can help provide greater insights as well as an overview of the entire business process. The efficiencies gained with the use of loan processing software enhance your response times and speeds up the turnaround time. 

 

It is easier to respond to previously unseen risks and implement cohesive guidelines for better compliance. The RPA ensures the observance of relevant regulations by your employees and becomes a helpful tool to audit your processes. 

 

Enhanced Scalability

 

The mortgage lending business is an amalgamation of numerous complex processes involving substantial paperwork. An in-depth understanding of various mortgage documents for data extraction, analysis, and classification, requires specialized knowledge of the mortgage industry. 

 

Expertise in all the mortgage lending processes is at a premium, and therefore, it’s not easy to outsource these tasks. It becomes hard to scale up with speed and efficiency in the face of sudden spurts in demand. 

 

On the other hand, cloud-based automation processes are easily scalable and allow you to handle growing demand at a short notice.  

 

Steady Workflows

 

Mortgage lending involves multiple complex tasks such as data collection, document handling, and credit report reviews. It’s difficult for the lenders to set up and manage independent processes for each area of their work.

 

Software applications and process automation can help at all levels with efficient data management. It can not only accelerate the entire process by handling repetitive tasks but also provide crucial insights that can help you minimize risks and optimize resources through predictive analysis.    

 

Accurate Revenue Forecasts

 

With process automation, predicting revenues and loan yields becomes much easier. Armed with this information, mortgage lenders can calibrate their businesses to predict and match fluctuations in the loan disbursal market. 

 

Better Compliance 

 

Mortgage lenders need to manage the multiple complicated processes as well as the inherent risks of their business, while complying with the complex regulations and guidelines of the government. 

 

Process automation gives you control over your processes and the ability to build checkpoints within your system for better audit and compliance. Applications can ensure the extraction, collection, and management of data in compliance with the existing government and industry regulations. 

 

Learn How LOS Can Help Drive Your Business with FundMore.ai

 

Loan origination software has the potential to propel the mortgage lending industry to greater heights. Robotic process automation and machine learning applications are on the verge of creating landmark changes in the industry with new innovations. These technologies are ushering in an era of higher speeds combined with enhanced security.

 

At Fundmore.ai, our platform uses predictive analysis to reduce risk, employs customizable automation to enhance customer experience, and ensures faster turnaround times for your accounts. To learn more about how we can help you improve your lending business, fill out this online contact form and our team will get in touch with you soon!

Tags: mortgages, Automation, lending, Mortgage Processings