How Intelligent Automation is Transforming Mortgage Processing

How Intelligent Automation is Transforming Mortgage Processing

Financial enterprises are well known for their mind-numbing, data-intensive workloads. These massive amounts of data require a sizeable human workforce to carry out processing, which is often inefficient. Mortgage processes demands for a lot of time, labor, and capital. However, as technology has taken over our lives and acquainted us with a faster-paced lifestyle, clienteles of financial firms have started grsowing impatient, demanding for faster loan approvals, quicker turn-around time, and instantaneous customer service responses.

In this current scenario of a pandemic-disrupted-world, this demand for a hassle-free and swift processing is unsurprising and understandable. With every industry slowly, yet steadily, embracing digital transformation, mortgage firms should also invest in an Intelligent Automation (IA) solution. More than 70% of the tasks involved in mortgage processes tend to be highly fragmented preparatory tasks that are repetitive in nature and are consistently logical, making them ideal candidates for automation.

Leveraging Intelligent Process Automation (IPA), that harnesses both Artificial Intelligence (AI) and Robotic Process Automation (RPA), for your enterprise, accelerates mortgage processing. It also acts as pivot to a sustainable and efficient business workflow. In today’s rapidly evolving market landscape, it is essential to adapt to modern technological changes to stay in the race, while also achieving a competitive edge.

Why Intelligent Process Automation (IPA)?

Mortgage processing consists of a myriad of tasks, such as loan approval, processing, underwriting, compliance, validation, and so on; the majority of these tasks are highly-repetitive and data-intensive with a lot of unstructured content and heterogeneous documents that need to be processed. This makes mortgage processing a good candidate for intelligent automation with an IPA solution.

With AI’s human like intelligence to process unstructured content and RPA’s ability to swiftly automate rule-based tasks, IPA provides a holistic solution that your company requires to efficiently automate mortgage processes. An IPA solution automates these mundane tasks, allowing your human workforce to refocus their attention towards more creative and resourceful tasks. This IPA tool, with the power of Natural Language Processing (NLP), Cognitive Vision (CV) and Machine Learning (ML), enables automation of structured and unstructured content. NLP and CV allow your tool to navigate through enormous amounts of documentation swiftly, without any human-errors.

Benefits of IPA Implementation

Harnessing an IPA intelligent solution enables your enterprise to access:

  • Faster Loan Processing

Loan processing speed is a crucial differentiator in the financial sector. The establishment of a strong and vast client base, largely depends on this factor. Hence, to gain an upper hand in the market, leveraging an IPA system to accelerate your loan processes is a prerequisite for your enterprise.

However, prior to implementation of an IPA solution, it is necessary for your firm to digitize as well as standardize the majority of your processes and documents. This hastens implementation and fine tuning of your IPA tool. As the process of loan application is digitized, clients find it extremely convenient to upload documents via an online portal, in contrast to manual methods that are slow and tedious. This accelerates the application process by manifolds, allowing your firm to get one-step closer to achieving a much faster loan processing system. In addition, an IPA solution enables scalability so your firm can easily handle a surge in mortgage processing.

Furthermore, the digital worker’s capability to read and verify documents in varying formats like PDFs, emails, chats-boxes, photographic evidence, and so on, eliminates any need for human intervention. With its NLP capabilities IPA can verify and validate documents in less than 15 minutes in comparison to 1-2 weeks with manual methods. It also accelerates underwriting, one of the most essential steps in mortgage processing. The tool swiftly extracts relevant data from various documents and compiles them for the underwriters’ referral. Additionally, ML enables the system to continually learn from new data and incorporate them. IPA also eliminates any occurrence of human-errors which could have caused further delays in loan processing.

  • Efficient Customer Onboarding

Satisfied and loyal customers are the foundation of any flourishing and stable firm. Excellent customer service will undoubtedly result in stronger customer relationships and better reviews, which will eventually result is a much larger customer base.

But processing documents during customer onboarding and closing can take anything from 2 weeks to 1 month. Additionally, other factors like approval time, government holiday’s, personal leaves, excessive workloads, can cause further delays in processes and customer response. Time-consuming loan processes can drive away your clients, urging them to opt for more technologically advanced lenders. Hence, leveraging IPA solutions is imperative for your enterprise.

Unlike human employees your digital workforce works round the clock, enabling 24×7 availability of intelligent chatbots for customer queries and efficient loan processing. Your IPA tool also allows structured gathering and storage of client data, enabling easy visibility . Implementation of this solution could result in a 95% increase in reduction of time taken to handle a trade transaction along with a 90% increase in accuracy rates.of the same.

With IPA by your side, your firm can automate most of its mortgage processes, while lowering operational costs and risks. This also minimizes time taken to onboard new customers.

  • Improved Compliance to Regulatory Demands

Financial markets are one of the most thoroughly regulated fields, with an expectation to demonstrate 100% compliance to government regulations. Verification of your company’s regulatory compliance can take up a lot of time and capital.

Extracting relevant documents from disparate departments of your firm, manually, is a very redundant way of processing, which causes unnecessary delays. By employing your IPA tool to regularly perform these risk-management assessments, you can eliminate any delays while being cost-efficient. Moreover, the high accuracy of your intelligent software bot leaves no ground for validation errors.

Research indicates that about 58% of lenders are willing to adopt intelligent automation solutions in the next 2-3 years. Harnessing IPA for mortgage processing is essential for your enterprise in gaining a competitive edge in today’s dynamically evolving market.  Implementation of this solution could result in a 95% increase in reduction of time taken to handle a trade transaction along with a 90% increase in accuracy rates. Last but not least, opting for a suitable IPA vendor for this implementation is key to your firm’s streamlined digital transformation, resulting in faster and more efficient mortgage processing.

If you are interested in exploring other aspects of IPA that can benefit your enterprise, you can read about Accelerate Mortgage Processing with Game-Changing Intelligent Process Automation (IPA) Solutions. Alternatively you can also read Transforming Banking and Financial Services with Artificial Intelligence (AI) & Intelligent Process Automation (IPA)

 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.

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