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The Role of Technology in Automating the Mortgage Industry


October 20, 2020 ( Newswire) A paperless office is no longer an incredulous concept now; however, we are still far from realizing it. The size and complexity of mortgage applications and the multitude of tasks loan processors must complete, has always been an almost impossible amount of manual work. But what if we are toiling unnecessarily? Because we genuinely are.

A sophisticated technological solution, complementary to the existing loan system - can help need to cater to a tech-savvy clientele who need information at the tip of their fingertips. Any statistical report in this context will tell you that despite increased customer expectations, lenders are falling short in providing an optimal experience.

With the currently fluctuating global financial situation and the rise of non-traditional mortgage lenders, the mortgage lenders are facing twice as difficult to fight for sustenance.

What can be done to improve? How can they come on top?

Abandoning the traditional mortgage lending process and owning the latest technology seems like a good start. Speeding up and automating the loan lending process will help them acquire the edge they are missing. Multiple e-lending platforms are already available in the market - they can partner with them, integrate one in their own system, or acquire one!

Why does the Mortgage Industry need Technological Intervention?

Improved Customer Service

When someone applies for a loan, the duration of processing the documents depends entirely on the person processing it. The typical time for this process can lie anywhere between two weeks to even a month. The processing speed is highly dependent on the accuracy of the employee handling the process, the availability of buyers, and the nature of the internal processing of the institution.

An RPA system will not be affected by all of these factors - they don't require any kind of time off, can also work off cloud infrastructure. You can also back this system up and access it anytime. This also ensures a 24×7 operation which ensures faster results, resulting in customer satisfaction. Since the process Is quite predictable as well, the borrowers can easily fit in other plans around the closing date.

Absolute Accuracy

As per the Institute for Robotic Process Automation (IRPA), the chances of making errors by an applicant during a loan process is 1 out of 10. In an automated system, all the time and effort spent on formal training is saved along with infallible results produced within minutes, all while adhering to all the regulations particular to your establishment.

Productivity Boost

Any loan lender will tell you Time is of utmost value. People who are applying for loans just want to be done with the process and move in as quickly as possible as the providers naturally want to cooperate. Mortgage lenders are also not a fan of the various recurring tasks that are involved in processing any loan application. Why? Because it usually results in scarce timelines for completing the more important tasks involved in the process. Automating the loan process does away with both these problems, recovering lost time as well as while closes applications within a shorter period.

Amplified Scalability

Understanding thousands of different types of mortgage documents for better classification, data analysis, document stacking, data extraction, a person would need a particular amount of understanding of the mortgage industry. These tasks are not easily outsourceable. An automated mortgage loan process platform is readily scalable. This is a major factor leading mortgage companies to embrace automation.

100% Compliance to Regulatory Demands

Mortgage lenders are expected to demonstrate 100% compliance with complex government regulations while managing the risks associated with the same. Automating the system would take away the worry behind producing error-free compliance to the regulations every time.

Consistent and More Efficient Workflow

Loan creditors will have to agree, even if it is reluctant, that their recent work process is not anywhere near to be called smooth. From entering the data, collecting the documents, routing, assigning tasks, sending email notifications, updates, and processing the documents - there are too many variables. This is where automation can help in speeding up the whole process by defining and regularizing it for improved effectiveness.

As all the steps in this process become automated, more data is available. Hunting for loan applications gets easier as you have systems devoted to document management. The analytics you gain allows you an in-depth look into your processes, helping make better decisions, and clearing the path for higher revenue.

Non-Disruptive I.T. Processes

Whether it is pulling data from multiple sites or systems, consolidating rule-based and checklist-driven tasks, validating data using an external source, automating mortgage operations can be achieved in as little as 60 days. For an industry dealing with time-bound issues, this is a boon.

Advanced Detection of Fraud

Mortgage fraud is progressively on the rise and has made the loan lenders resort to various kinds of methods to tackle the loss for non-payment of the loan because of various fraud issues. If you automate your process, it also gives you an easy understanding of the type of loans that need to be analyzed for fraud & loss elimination.

Due to the taxing mortgage application process, lending companies hire more laborers to handle various manual loan processing tasks. Processing a loan packet is voluminous in nature and requires several manual tasks, which make mortgage processing slow and inefficient.


Overall, an efficient process can lead to a shorter loan processing cycle time, a shorter cycle time can help loan originators close within the initial rate lock period, helping borrowers or lenders to avoid unnecessary extend rate lock fees. It is clear that the internet is starting to play a major role in loan lenders.

Rapid technological advancements have clearly led to increased competition in the industry. With the emergence of different online loan providing platforms, backed by multiple major players has increased the difficulty for ancient mortgage lenders. However, no one can deny that automation is the key to the much-needed digital transformation in the industry. It can help in speeding up the work-process and keep more customers satisfied! The technological intervention in the mortgage industry is the need of the hour and must not be overlooked.

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