Mobility + RPA = A Quicker Route to Digital Mortgage for Mid-Size Lenders

By October 5, 2017 April 27th, 2019

We all know that the mortgage industry is dominated by relatively small technology firms and there is no “Google of Mortgage” today. The traditional LOS developers largely repurpose and reskin their legacy, cash cow applications in an attempt to retain market share and remain compliant. There are some bit players who provide specific black boxes to fulfill a new niche, need, or gap. New integrations are grudgingly provided by the vendors themselves if regulators insist or if the money is right or for a fee by specialty third parties lucky enough to have the right relationships, or by lenders themselves via trial-and-error if no one else will listen.

On the other hand, the millennials are clamoring for speed and don’t care about the mortgage industry’s underbelly. This is exactly the reason there are dozens of new startups working on brand new “FinTech” systems purporting to streamline the process and enhance the user experience. Eventually they will have these new systems ready for the market and some will wildly succeed. These startups hope that this happens before the next downturn in the industry.

Assume that one of these systems is a perfect fit for your company. Will it have the ROI for your origination volume? How long will it take to train your workforce? Do you have the required IT and business process governance to manage such a change? Is your new FinTech option secure enough to meet your company’s requirements and guarantee protection of consumer data? These are all difficult questions lenders face on a daily basis.

If the answer is “maybe,” then let us look at how new technologies enable you to offer a digital experience to your customers without spending a fortune on unproven new technology.

Visionet has built a standard accelerator to connect your LOS to a mobile platform. A millennial can complete the application, upload documents, view application status or respond to requests for additional information on their mobile device. With today’s mobile technology, this is a no brainer. Your origination front end will be digitally enabled in a matter of weeks.

The problem is in the back office where dozens of vendors and hundreds of workers struggle to operate in a seamless digital fashion. Unfortunately, the digital revolution begins and ends with the smart phone. But Visionet has found a better way to efficiently and economically integrate the back end and complete the digital journey.

Robotic Process Automation (RPA) is marketed as a robot to replace humans. However, we believe RPA is best suited to digitize the back office while subjective and high risk tasks continue to educated and experienced humans. We view RPA as a tool to make people more efficient – thus reducing the overall cost and time to complete a set of tasks. We claim this in the context of midsize lenders with limited technical know-how and tight budgets.

Consider the following example of a digital journey in origination. The customer is asked to provide a certain document via text message on his phone. He takes a picture of the document and sends it via email. The software robot parses the email, sizes the image, uploads the image in a specified repository, then scans the document. If the document is unrecognized or of poor quality, it is routed to an operator for QA. The Bot then types the information into the legacy LOS, sends a notification to the next bot or human processor and politely informs the customer that the document has been received and verified. It’s these mundane, often repeated, non-value added tasks that are ripe for automation via RPA. RPA allows humans to delegate this “heavy lifting” to the robot and concentrate on more high value, complex efforts.

Visionet has done numerous end to end lending optimization projects for midsize lenders, which have resulted in significant time and cost reductions. Our pragmatic approach facilitates phased roll outs of digital strategies to enable faster realization of benefits than with traditional, long runway, blue-sky, high-price-tag integration programs.