The United Kingdom's (UK) mortgage market reached 1.66 trillion euros of outstanding residential mortgage lending in the fourth quarter of 2020, leading all the other European countries.
But mortgage origination processin the UK isn’t a bed of roses for the buyer or lender. The entire process consists of various steps, from processing the applications to the final acceptance and funding stage.
Furthermore, just like any other application process, the loan origination process also involves a plethora of documents. The lender's job is to scrutinise these documents and verify all the numbers in detail.
Looking into various mortgage deals and schemes like the ‘Help to Buy’ scheme or the ‘Right to Buy’ scheme is the first step that a buyer takes in applying for a mortgage.
Once a buyer decides on the right deal, they send in their application. Along with the application, the buyer also attaches various supporting documents like bank statements, payslips, ID proof, and other forms and statements for the purpose of verification.
The problems the buyers and lenders face in the application stage include:
The manual processing in this stage causes a lengthy feedback loop between the two, which leads to a delay in the entire mortgage origination.
When all the documents are properly submitted, the case handler now has to segregate them into their respective categories like income and expenditure.
Once all the data is organised, the lender or underwriter processes everything.
By looking at all the financial data, including the buyer’s assets, liabilities, and credit score, the underwriter has to assess the risk associated with lending money to the borrower.
Due to the manual process involved in this step as well, there are high chances of
As a result of all these challenges, the average time taken to process the funding from the application stage is over 35 days.
This time-consuming process increases the operation cost of mortgage origination and sometimes leads to unsuccessful loan contracts.
The automated approach in handling documents and performing analysis simplifies the entire process. It makes it more streamlined and reliable than the manual way by leveraging Artificial Intelligence (AI) and Machine Learning (ML).
Using advanced algorithms, AI mortgage tools compare the buyer’s financial information and check if it matches the mortgage requirements and the lender’s guidelines.
By providing detailed analytics, the lender can then make effective decisions on loan approvals or rejections.
The many advantages of using machine learning mortgage tools include:
To make your underwriting process and decision-making easy, Digilytics offers a state-of-the-art artificial intelligence product through which documentation and analysis become easy.
Digilytics RevEl is easy to use, can be plugged on to any loan origination system. The Digilytics platform overcomes all these problems by using intelligent image processing. The AI powered mortgage lending tool can eliminate human interference in entering data and processing documents.
This check overcomes the problems involved in incomplete paperwork by validating a document, like a bank statement, to see if all the information fields required are complete. Post automated classification, the extracted data is checked to ensure the presence of the required data on documents.
After checking the completeness of the documents, Digilytics RevEl measures the correctness of the data in the documents using intelligent data capture. By utilising a combination of deep neural networks, machine learning models, and Natural Language Processing (NLP), RevEl verifies the correctness of the extracted data.
The last check that RevEl performs on the documents is for their consistency. The AI-based tools compare each data field in a document with another document to check the consistency of that data.
Inconsistent data across documents helps the underwriter in making better decisions.
Manually checking the completeness, correctness, and consistency of the data in a document would require a lot of manpower and time.
RevEl can also classify the documents into separate and relevant categories set by the user based on its content, irrespective of it being structured or unstructured.
For example, salary slips are put under the ‘Income’ category, and general monthly expenses on essential stuff are categorised under ‘Expenditure’.
Using AI-based text recognition and ML-based auto-classification, the documents are all segregated and organised into one single electronic file for smooth access.
Digilytics also gives you access to manually check the classification of the documents so that you can double-check the entire process.
Digilytics RevEl offers Intelligent Affordability Services (IAS) that allow seamless and accurate data extraction from various documents.
Based on the information and data in the application, the AI tools can also generate tasks or assign the application to an underwriter.
Underwriters can also annotate the pages in the documents or add notes to them. All these small details put together make RevEl your go-to product as it makes the loan origination process efficient, labour-saving, and time saving.
RevEl isn’t restricted to the field of documentation and data processing alone. It also provide support in other areas, including:
RevEl has benefitted many lenders across the UK in the following ways:
The artificial intelligence mortgage industry is taking over the UK mortgage market. Leveraging the power of AI and ML has made significant improvements to document analysis, classification, and processing.
You, too, can revolutionise your mortgage origination using Digilytics RevEl to save time and resources you'd have otherwise spent on manually classifying documents.While you are here, other top articles you might be interested in All about One-shot Learning AI technology and its impact on the UK Mortgage Market A change in technology is coming to the UK Mortgage 3C checks: The Digilytics Art of validating mortgage documents Tech Enablers in the Mortgage Industry The Future of Computer Vision, Machine Learning and Artificial Intelligence in Mortgage Industry How industry 4.0 principles can work in the favor of mortgage origination? Top 5 Real Challenges in Building Predictive Models in Mortgages 5 Ways in which Mortgage Lenders can Leverage Digital Lending for Good The Power of Intelligent Digital in the Mortgage Industry by Digilytics AI Whitepaper on Data Lakes: A new approach to managing data Applying industry 4.0 principles to mortgages Intelligent Digital Income and Expense Verification by Digilytics AI Digilytics AI is one of the top 30 ML-powered start-ups Top Challenges in Implementing a Learning Interface First time right applications for mortgage lenders – Expectations vs Reality Key Takeaways from the Webinar on Intelligent Affordability Services