Accelerate Time to Offer in Specialist Lending with RevEl

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Introduction

There are several different mortgages that one can apply for in the UK mortgage market. However, when the borrower’s loan applications are rejected, an entirely new area called specialist lending comes into the picture.

Are you a specialist lender who processes many different applications regularly? Are you looking into a faster technique to process all your applications accurately? If yes, then Digilytics RevEl is here to help you out!

Specialist Lending: An Overview

Say a borrower does their research on the various mortgages available and then applies for the one that best suits their requirements. They send in their mortgage application along with documents that support their personal and financial information.

But for some reason, the lender rejects their application. This generally happens when the borrower does not meet the requirements set by the lender and the regulations formed by the government.

In such circumstances, a specialist lender, like you, can offer alternative mortgage options to the borrower.

Data shows that one out of five British citizens face credit application rejections, out of which 10% have faced mortgage rejections. And not just the UK, US citizens also suffer from mortgage rejections. In 2019, 460,000 mortgage applications were rejected in the US.

Such high rates of mortgage rejections give specialist lenders a boost in their business.

Common Reasons Behind Mortgage Rejections

These are some of the common reasons why lenders reject loan applications.

  • Poor credit history
  • Does not satisfy mortgage requirements
  • A high amount of prior debt
  • Lack of necessary financial information provided
  • Unable to verify employment

A survey conducted on 1000 UK citizens showed that poor credit history was the reason for 41% of mortgage rejections.

How Different is the Process?

The approach to specialist mortgages in loan origination is pretty much the same as conventional mortgages. The borrower sends their application and documents, and the specialist lender analyses and verifies the information.

The only difference between both mortgages is the set of requirements and criteria that the specialist lender examines.

Specialist lenders customize how they verify the information and make the whole process more personalized for the borrower. They do this by going beyond the credit score of the applicant.

Credit scores sometimes do not portray the entire picture of the borrower’s financial history. This is why specialist lenders evaluate the whole situation and look into each circumstance of the borrower’s past. This way, lenders can thoroughly assess the mortgage application.

Apart from looking beyond the credit score, specialist lenders also have a more inclusive credit policy to calculate the applicant’s creditworthiness.

Revolutionize with Digilytics

For all tasks related to specialist lending mortgages, Digilytics is your one-stop solution. Digilytics AI is committed and motivated to transform traditional loan origination processes with technologies like artificial intelligence and machine learning.

RevEl is a user-friendly AI product that is specifically designed for financial services to make lending easy.

Our product efficiently works with the principle of specialist lending - providing mortgages to customers from diverse backgrounds. In fact, in 2020, Digilytics AI won the Diversity in Finance award for the Product of the Year!

Digilytics RevEl is focused on helping specialist lending organizations verify borrower information accurately, accelerate the time to offer and fund, and sanction a higher number of loans to increase gross lending.

Accelerating Time to Offer

Increasing the number of gross mortgages sanctioned can only be achieved if the time to offer loans and mortgages is significantly reduced. For accelerating the time to provide, all the steps in the loan origination process must be executed at a quicker pace while delivering high accuracy levels.

Let’s analyze and understand what delays the time to offer and how Digilytics can help.

The Problem

The main problem with the loan origination process is that it is lengthy and expensive, exceptionally when executed manually. On average, 40% of origination applications require manual intervention. So naturally, this increases the origination costs and time to offer.

Furthermore, large volumes and an influx of mortgage applications also add more to the burden. When all these factors are put together, the entire time taken for the whole process takes over 35 days on average.

The Solution

The biggest reason for manual intervention is because 90% of lending companies and banks have not yet leveraged artificial intelligence into their operations.

The most efficient solution is to automate the entire specialist loan origination journey into a single platform that delivers high accuracy. Or, in other words - Digilytics RevEl.

Using AI and ML, RevEl automates each step in the loan origination process.

Application and Processing

Instead of lenders and case-handlers manually processing the data and entering it into the system, RevEl digitizes the entire step. RevEl accurately extracts the information from the documents and then classifies them into relevant categories. It also checks if all the information required is present

By automating the entire step, the average back and forth between the borrower and the specialist lender is reduced from five times to less than three times, and the processing time is reduced by almost 65%.

Underwriting

RevEl also verifies all the information in the documents to check if the borrower is not a fraudster. The various tasks performed in verification are,

  • Checking the consistency of the information in all documents
  • Verifying borrower details with pre-set specialist lender requirements
  • Verifying income and employment with online data sources and open banking

Through automation, RevEl cuts short underwriting time by 30% as well. This way, the entire completion time and time to offer is reduced by almost 50%.

Tracking

Using predictive models based on the borrower’s financial history, specialist lenders can make more informed decisions. RevEl also provides real-time status updates and glass-pipe tracking to all lenders.

Conclusion

The longer it takes to process and fund mortgage applications, the higher the operating costs become. As borrowers who apply for specialist mortgages have already faced mortgage rejections, accelerating your time to offer can help improve your customer satisfaction rates.

Specialist mortgage providers like Together Financial Services have already integrated Digilytics RevEl into their loan origination process.

Implement Digilytics services into your specialist lending organization to accelerate the time to offer today!

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