Automation & technology

Automation Insider: The race for mortgage automation


Thinking about incorporating automation into your mortgage lending process, but unsure where to start? When implementing automation, first and foremost, it’s important to note that this is a cultural shift for your organization. And as such, you’ll need to take key steps to gain buy-in and support from your various stakeholders across the business. Our latest eBook series, entitled Creating a Culture of Automation in Your Organization, details step-by-step, the strategic planning needed for a successful implementation of automation across your lending business. From identifying workflows to implementing change management strategies, we compiled hours of conversations with industry experts and leading lenders into this two-part series. In this blog, we’ll share helpful insights from Part 1, which focuses on preparing you for your automation journey.

Speeding forward with automation

To say that the mortgage industry has undergone a monumental shift in recent years, would be an understatement. Amidst the COVID-19 pandemic, nationwide shutdowns, and record-breaking loan volumes, one thing became apparent: Automation is critical to long-term survival. As a result, efforts to automate the loan origination workflow, from open to close, have accelerated to breakneck speeds.

According to John Ashley, CIO of PRMG, “In many ways, there’s a technology arms race going on among lenders in the marketplace. The industry is increasingly competitive, so you have to find a way to be more efficient, more profitable, more accurate, and create an optimum experience for your borrowers and users. If you lack automation in your operations and processes, all of that becomes very difficult—and very painful—to achieve.”

Automation provides lenders with a more effective way to manage the cyclical nature of the mortgage business, including the capabilities to:

  • Save time
  • Reduce errors
  • Decrease costs
  • Improve profitability
  • Increase consistency
  • Improve the borrower experience
  • Improve fraud detection
  • Increase scalability
  • Improve employee retention

Mortgage industry automation demystified

By definition, automation is the use of machines and technology to enable processes to run on their own without manpower. Automation within the mortgage industry encompasses a wide range of technologies with different functionalities and applications. These include:

  • Rules-based systems: These systems consist of configurations or predefined directives that trigger specific actions without human intervention, based on the data received.
  • Artificial intelligence (AI) and machine learning: This technology leverages computer software to learn and mimic the logic and problem-solving capabilities of the human mind.
  • Robotic process automation (RPA): Best for tedious steps in the mortgage lending process, RPA trains software “bots” to perform repeatable, rules-based digital tasks.
  • Application programming interface (API): As a software intermediary, APIs allow two pieces of software or platforms to “talk” to each other, and exchange information seamlessly.

Automating the loan origination workflow

After seeing various types of mortgage process automation, it won’t surprise you to learn that leveraging this technology can impact a lender’s overall user and customer experience. This includes giving your loan officers the tools to automate and simplify tasks, such as:

  • Perform calculations
  • Assign roles and tasks to employees
  • Place eConsent requests and conditions
  • Review and clearing conditions
  • Route loans through the workflow
  • Order services, including flood, automated underwriting system (AUS), credit and appraisals, and closing fees
  • Review documents for completeness
  • Verify data and performing quality assurance
  • eNote support to streamline the closing process
  • Communicate with borrowers and providing status updates
  • Send notifications and other communications to stakeholders

Ready to learn more and start putting automation to work for you? Download the full version of Creating a Culture of Automation in Your Organization - Part 1, now.

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