The digital revolution has impacted many industries, including the mortgage industry. For starters, customer expectations have drastically altered. Today, they automatically expect their lenders to offer seamless experiences, flexibility, and personalized products and services.
In the face of such changing expectations, lenders must focus on differentiating their services in order to survive in the industry. 9 out of 10 mortgage businesses have already digitized their processes. But this might not be enough.
They need to infuse advanced technologies like AI into their everyday processes to experience the real power of mortgage automation. Now, there are multiple ways in which AI can aid the digital mortgage process. Here are the top ones –
One of the biggest benefits of integrating AI into the digital mortgage process is that it drastically increases the staff’s productivity. Remember – AI can do stuff at a pace that humans can’t even imagine. Take the case of data processing or data mining; the loan officers often have difficulty finishing everything within their allotted time frame.
With the help of AI, the same data can be pulled, or the same query can be answered multiple times with minimal manual intervention. This frees the loan officers, giving them more time to connect with loan applicants, realtors, and banks. In short, they can do their real job. They can even interact with the prospects and guide them through the various aspects of the loan.
An RPA mortgage system is the best example of improving productivity through AI. Imagine a scenario where a customer is asked to share a document for mortgage documentation purposes. In response, the customer clicks a photo and mails it to the loan officer. The loan officer would then open the attachment, enter the details manually in multiple systems and inform the customer about the update. But by fusing RPA in lending processes, the RPA bots can take care of all these tasks.
To err is human. Fortunately, AI eliminates human errors in the digital mortgage process as it makes use of advanced techniques to increase accuracy. Take the case of an automated underwriting system. Unlike traditional underwriting, which focuses only on a bunch of credit attributes, these systems analyze millions of data points from various credit bureau sources to accurately predict the credit risk of any customer. By using machine learning, this smart underwriting system can drastically outperform traditional scorecards in any mortgage lending business.
Chatbots powered by AI can answer any question that a customer has. Along with that, chatbots can automatically ask customers for various information required as part of the documentation process. They can even do regular follow-ups at the right intervals till the information is collected. Apart from playing an important role in a fully automated loan origination system, these chatbots can also help the sales team. They can collect the specific requirements of a prospect and share them with a sales personnel, who can convert these prospects into customers by offering tailored solutions.
Traditional mortgage models often discriminate against borrowers who do not satisfy a few parameters related to credit risk, though they may be a great candidate for a mortgage loan. Some people are even rejected due to human bias. Of course, there are training and programs to eliminate such discrimination, but it doesn’t work as expected. This is where an AI-based automated loan approval system helps. Such systems are programmed to approve or deny loans based on multiple criteria that are transparent and neutral. A study shows that mortgage companies that use AI ensure 40% less discrimination when compared with traditional mortgage lending practices.
It is quite obvious that integrating AI with your digital mortgage process can do wonders for all the stakeholders involved. It can improve the lending experiences for the customers, enhance the working environment for the staff and boost the sales for your business. The future is not very far when all mortgage lenders will be rampantly using an automated loan processing system like automated underwriting software or mortgage workflow automation software, and reap its full benefits.
If you’re interested in exploring Intelligent Automation to enhance your firm’s mortgage processing, Rapid Acceleration Partners would be glad to help. Our next-gen, AI-powered content intelligence platform RAPFlow enables full lifecycle AI orchestration on a single platform. When used in tandem with our RPA tool RAPBot, it provides end-to-end workflow automation capabilities that can be deployed in just weeks. You can even build your own use case and the platform can easily integrate with your existing systems. Book a demo to get a more detailed understanding of how our products can transform your business.