Benefits of Mortgage Process Automation

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The mortgage lending market in the UK dates back to the late 18th century. Since then, the market has seen extensive changes in the major players in the market. From building societies to banks and mortgage lending organizations, there are over 200 mortgage lenders in Britain today.

With changing times, as the lending organizations have changed, the lending processes have also changed. Artificial Intelligence (AI), Machine Learning (ML), and Deep Learning (DL) are now paving the way for a transformation from the traditional loan lending process to a modern automated one.

With such technological advancements, what are their roles in mortgage origination, and what are the benefits of mortgage process automation? Let’s find out!

Role of AI, ML, and Deep Learning

The automated mortgage origination process is faster and much more efficient than the conventional method. This upgrade is due to AI, ML, and DL.

Artificial intelligence helps automate the process through digitization. With all the applications and documents available in the digital world, AI assists underwriters in verifying information. Artificial Intelligence also generates insights based on the data to help lenders in making loan approval decisions.

These AI-powered predictive models function with the help of machine learning. Apart from this, ML works with Natural Language Processing (NLP), computer vision, and Optical Character Recognition (OCR) tools to accurately extract information from documents.

Deep Learning comes under machine learning, and it further enhances accuracy levels through deep neural networks.

Therefore, all three fields are interlinked. Deep learning is a subset of machine learning, which is a subset of artificial intelligence. Together, all three contribute towards the mortgage process automation.

Benefits of Automation in Mortgage Origination

1. Faster Mortgage Funding

The conventional mortgage origination process is heavily paper-intensive that can cause lots of errors and delays. Once the applicant sends their application and documents like payslips, tax returns, bank statements, etc., the broker or the lender checks these documents.

If the documents are incomplete or there are errors in the application, they are reverted for changes. This back-and-forth occurs around four to five times. The underwriter then calculates the affordability and creditworthiness of the borrower.

All these factors make the manual process slow, taking over 30-35 days to fund mortgages. Automation can drastically reduce the cycle time as all the documents are sent and processed digitally, while AI/ML models can calculate the affordability quickly.

Take Digilytics AI as an example. Through automation and AI/ML models, Digilytics can,

  • Reduce processing time by 65%
  • Cut short underwriting time by 30%
  • Complete mortgage processes 50% faster than manual approaches

2. Higher Accuracy

Errors are a major headache in the manual approach.

  • Borrowers may make errors in their applications
  • Case handlers may make faults in data-entry
  • Underwriters may make mistakes in calculations and affordability checks

These errors can be catastrophic for both borrowers as well as lending organizations. The mortgage process automation can increase the accuracy levels and reduce the error rates since the AI/ML models are properly trained in it.

Digilytics assures over 95% accuracy in data processing, extraction, and classification through a hybrid model that integrates deep neural networks and rule-based approaches. For example, RevEL a Digilytics product, is trained with 100+ mortgage document types and over 7 billion mortgage-specific tokens.

RevEL can also compare the documents with standard mortgage regulations and your lending organization’s rules to enhance efficiency.

3. Cost-Effective

Who doesn’t like a cut in operating costs? Apart from faster cycle time, automation can also help in reducing operating costs for your lending organization. But how?

Costs generally increase due to two main reasons:

  • 1. Lengthy processing and funding due to delays
  • 2. Errors caused during each stage of the process

If you do not find the errors in time, it can even lead to a substantial loss in money and time. However, as seen earlier, AI, ML, and deep learning can quicken mortgage origination and reduce errors, thus making the process more cost-effective.

Through automation, Digilytics AI reduces operating and origination costs by 30% for your organization.

4. Enhanced Productivity

74% of employees in automated companies believe that automation improves job satisfaction. Furthermore, on average, happier employees are 13% more productive. This correlation between job satisfaction and happiness enhances team productivity.

Moreover, you can leverage automation to do most of the grunt work for you. This way, you and your team members can focus your attention on other matters, like building a professional relationship with your customer.

5. Scale Your Operations

Scaling your operations by processing more applications and funding more mortgages can help your lending organization grow. While scaling is hard in the manual loan origination process, automation can help you achieve it with ease.

As AI, ML, and deep learning models are computerized, they can handle a heavy workload and complete it quickly. Automated processing can also prevent your pipelines from getting clogged with too many pending mortgage cases.

For example, if the number of cases you processed was around 2000, you can increase it to over 2600 cases with Digilytics.

6. Eliminate Frauds through Automated Processing

13% of UK adults feel that it is reasonable to exaggerate their income values in their mortgage applications. This has increased the fraud rate in the UK mortgage market. AI/ML models and automation can help you eliminate such fraud risks as well.

Digilytics works with companies like AccountScore and The Work Number to reduce fraud risks with mortgage applications and documents. With assistance from such companies, you can verify your borrower’s income and employment directly from the bank and the employer.

7. Gain Access to High-Quality Insights

Who doesn’t want actionable insights that can help make better decisions? The best part about artificial intelligence and deep learning is that they can generate actionable insights based on data from the documents. You can then use these insights and make more informed decisions on the borrower’s application.

Digilytics offers glass-pipe tracking that shows near real-time status of key metrics. Through an interactive dashboard, Digilytics also provides insights that you can leverage while making decisions.


Artificial intelligence, machine learning, deep learning, automation - all these processes and features offer umpteen benefits to you and your organization. However, for better performance and results, you need the right loan origination software to leverage all of them in the right way.

Digilytics AI is that software and tool for your mortgage origination processes. Feel free to leave a message or give us a call to get in touch with Digilytics.