4 Ways to Streamline your Mortgage Lending Journey

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Mortgage industries are witnessing a massive shift in their lending journey, right from the beginning till the end. Lenders have started to realize the scope of easy-to-use AI technology with human capability. Lenders are laying key emphasis on smoother mortgage experiences. Banks and traditional mortgage providers are taking note and are trying to catch up on customer engagement and satisfaction.

The struggle is real!

Despite being the largest asset class for secured loans, mortgage lending is stuck in an era bygone. Almost 90% of the industry has not adopted Artificial Intelligence.

Mortgages have a massive opportunity to gain competitive advantage. The current origination process across mortgage lenders is lengthy and frustrating for customers and intermediaries alike.

Many specialist mortgage players struggle with reducing time to offer and providing a seamless customer experience.

Typical mortgage lending requires significant manual intervention, resulting in multiple elapsed weeks of average time to offer. Such a high average time to offer brings along with it challenges of cancellations resulting in revenue leakage, poor customer, intermediary and colleague experience and a high error rate.

In essence, mortgage lending has significant opportunity for improvement.

Computer vision in mortgages

Quick time to offer and customer experience: Key mantra in your mortgage lending journey

With rapid digitization and automation, the borrowers in the mortgage industry are becoming ever demanding. They want everything quickly and with a seamless experience.

Faster the mortgages able to service their borrowers, greater the number of happy customers. The borrowers need “first time right” sort of experience, without any hassles.

(e.g. spending long hours filling out an application and gathering documents, manual interventions, and touchpoints is something that a customer will not want)

Customer experience, on the other hand, is a real differentiator. Customers move fast in the entire cycle, and the lenders must keep up with them. Understanding customer behaviour and preferences help lenders prioritize investments in customer experience.

Machine learning in mortgages

4 Ways to Streamline your Mortgage Lending Journey

How DigilyticsTM RevEL for financial services dramatically reshapes the mortgage lending process, leveraging AI

  • Smart data capture: Recognize over 400 origination and closing documents

Mortgage Industries today are generating volumes of data hence efficient and effective management of data is vital for overall success, during a lending journey. It’s imperative for growing businesses, to acknowledge the ever-growing importance of data-driven processes, enhanced operational efficiency and well-informed decision making.

DigilyticsTM RevEL for financial services efficiently extracts business-critical data from different origination and closing documents. It collects documents from various sources, improves document clarity, extracts data with precision, pushes the extracted data into transactional systems and continuously improves extraction accuracy.

  • Intelligent case verification

Mortgages today are experiencing rapid automation and digitization. Despite this change, a substantial portion of an underwriter’s time is spent on manually verifying documents and data to ensure all the requirements are met for the application to proceed forward and move to the next stage in the loan application lifecycle.

With a focus on reducing time to offer and time to fund, RevEl for financial services, intelligently automates the verification process by verifying the documents from various sources by ensuring the minimum requirements are met for the application to proceed.

Eg: Checking if the payslips have been received and correspond to the relevant time frames (last three months) or the application declaration received contains appropriate signatures, necessary fields etc.

  • Automated underwriting

Recommendation engine module, inbuilt in RevEl helps underwriters identify low risk accelerated cases based on a machine learning algorithm.

Accelerated cases are the cases on which an underwriter spends minimal effort to underwrite (approve/reject) to reduce underwriting time and make the process fast.

Entire underwriting journey can be automated, predefined if the case is classified as an accelerated case.

  • Granular visibility

Underwriters enjoy operational, strategic, and analytical benefits through the dashboards with visual conversation embedded in RevEl. It improves collaboration, communication, and task allocation.

Key strategic benefits include real-time reporting by providing additional KPI driven data and data-backed decision making to improve customer and broker experience. Managers and team leaders have better visibility of team performance by tracking KPIs/SLAs.

AI in mortgages

Summing it up

For revenue growth, mortgages need to focus on customer/intermediary pool and enhance their experiences. Quick time to offer and lenders who effectively address the pain points of their customers are trusted advisers and improve the overall customer experience.

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Author: Nalin Suri, Product Manager at Digilytics AI | Ishanee Bajpai, Marketing at Digilytics AI

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Posted Under: Artificial Intelligence, Mortgages