Unified Case Pipeline View in the Mortgage Journey: Challenges and Solutions

Top 5 Challenges in getting a unified case pipeline view in the mortgage journey

Introduction

A lot goes into buying and building your dream home or establishing your business from scratch. Loans and mortgages provide a significant boost to your finances that help you make your house or your business.

But applying for a mortgage and getting it approved isn’t a simple process. There are many steps involved, not all of which are easy to see through. Due to this multi-step mortgage origination process, tracking the status of your mortgage and getting a unified case pipeline view is pretty challenging.

So, let’s look into the various stages in the loan origination process, the challenges in getting a unified pipeline, and efficient solutions to overcome all these challenges.

Steps Involved in the Mortgage Journey

The various steps involved in the mortgage journey are,

  • 1. Research
  • 2. Application
  • 3. Underwriting
  • 4. Completion
  • 5. Funding

The borrower begins by performing complete research on the various mortgages available and chooses one that best suits their needs and requirements. After choosing one mortgage, the borrower sends in their application and supporting documents that prove their personal and financial details.

The case handler then organizes all the documents and checks if all the required information is submitted. The case handler might even record all the information in a computer system.

The underwriter then assesses the documents and decides whether the borrower can pay their mortgage dues on time. Then, using the credit score, bank statements, tax forms, and payslips, the underwriter checks the borrower’s creditworthiness and accepts or rejects the loan request based on that.

Once all the checks are performed, and the loan request is accepted, a real-estate appraiser and a home inspector evaluate the home or property value.

The mortgage loan origination system ends with signing the final documents, after which the lender supplies the required funds

This entire process takes around 35 days to complete. The time duration may be even higher if there is any missing information in the documents.

Tracking the Progress

With so many steps in the mortgage origination process, tracking the progress of an application can be vital for developing an enhanced customer experience.

The borrower and the lender must be able to access the progress of the application at all times. To be able to do this, they need two things to happen:

  • The loan origination platform must go digital.
  • The mortgage lending company must incorporate a unified case pipeline view into the mortgage journey.

Getting real-time updates and tracking the progress of traditional paper-based documents is quite tricky. Thankfully, modern-day technologies have made digitization simple.

A mortgage pipeline contains all the loan applications that are in some stage of the mortgage journey. It provides a unified case view to the borrower and the lender so that both can track the progress of the mortgage application in real-time.

But there are a few challenges and limitations in getting a unified case pipeline view in the mortgage journey.

Challenges Faced in Mortgage Pipelines

Digitizing the Mortgage Journey

As mentioned earlier, the first step that can allow tracking through a mortgage pipeline is the digitization of the mortgage journey. This would mean you must go digital right from the application stage and include the underwriting stage in it as well.

While sending the application and documents online or scanning the documents using OCR tools can be easy, extracting the information, classifying documents, and verifying the information might cause a few problems.

To overcome this challenge, you might have to look into loan origination software companies that digitize every point of the mortgage journey by delivering results with high levels of accuracy.

Managing an Overflowing Mortgage Pipeline

There may be a few circumstances in which your mortgage pipeline might overflow because of too many loan applications. For instance, when the UK government brings out new mortgage schemes to help mortgage applicants, there might be an influx of applications.

The best example would be the Coronavirus Bounce Back Loan Scheme that the UK government implemented to aid SME businesses. Within 24 hours alone, over 110,000 businesses applied for this loan.

Tracking so many applications and their progress in each stage, along with real-time updates, can cause big headaches to mortgage lending companies. Partnering with companies or platforms that are specialized in this task may be of help.

Developing a Scalable Environment

All mortgage applicants don’t apply for the same mortgage. For example, the mortgage value will differ based on the types of supporting documents submitted by the borrower will vary, the reason for applying for a mortgage may vary, etc.

This is why having only one type of loan origination system may not be wise. Instead, an efficient unified case pipeline view must be scalable to the varied requirements of the borrower and must enhance the customer’s experience.

Similarly, the system must also adapt to the different regulations and requirements of the lender and must not require heavy training for the same.

Managing Mortgage Pipeline Risk

The mortgage pipeline consists of loan applications that the lender locks in. During the entire mortgage process, the lender is at risk of a loss from when they lock the application to the time they sell the mortgage. The risk involves a drop in the mortgage value after it is locked or the probability of the loan not closing.

If you can estimate most of your mortgage applications that will close, then the risk involved will also reduce.

In such circumstances, the importance of digitization becomes more pronounced as it helps you make better decisions on loan approvals through predictive analytics. It also helps in closing the mortgage quickly.

Providing a One-Stop Solution

Offering a unified case pipeline view gets easy if the entire mortgage origination process is executed on one platform. For example, instead of the borrower sending their details and documents separately to the broker, loan processer, lender, and real-estate appraiser, one single platform can be used so that the borrower sends all the documents only once.

A single platform also provides a single dashboard through which lenders can access any data at any point of the process with complete ease.

The Digilytics Solution

Digilytics RevEl is your one-stop destination for all mortgage-related activities. It automates the entire process and offers a scalable working environment through its AI mortgage lending and machine learning mortgage tools.

Through RevEl’s artificial intelligence dashboard, you can also track the progress of the loan application throughout the mortgage journey. A few features of RevEl’s tracker are,

  • Offers transparency with glass-pipe tracking
  • Delivers real-time updates to the loan processor and underwriter
  • Provides predictive models based on the borrower’s financial details that help the lender make better decisions
  • Streamlines the sharing of data and information between different members of the team throughout the mortgage journey
  • Suggests possible actions for the lender

RevEl can track inputs and outputs from brokers, borrowers, and lenders along with integrations and partnerships with third-party platforms. It can assist in tracking verifications of credit ratings, personal and employment details, income, assets, and liabilities.

Conclusion

Getting a unified case pipeline view is beneficial for all the members involved in the mortgage origination journey and helps in improving the customer experience.

Digilytics RevEl provides a one-stop solution that overcomes all the challenges involved with the pipeline view and delivers accurate and efficient results.

About Digilytics AI

Digilytics is a fintech company that leverages the power of Artificial Intelligence to revolutionize and automate the UK mortgage lending industry. With Digilytics, lenders can produce more first-time-right applications and deliver mortgage funds quickly and efficiently.