Setting New Benchmarks in Mortgage Processing with AI Engines

The mortgage industry is experiencing a new awakening. Technologies like Artificial Intelligence (AI) and Machine Learning (ML) are driving workflow automation and allowing lenders to enhance efficiency and deliver superior customer experience during mortgage applications.

Mortgage can be a tricky business to be in, especially with dipping loan productivity, ongoing Fed rate hikes and a looming recession. Cost rationalization and improving back-office efficiency are the critical drivers for lenders to automate the lending lifecycle. In fact, in 2023, there was a 73% increase in lenders who mentioned operational efficiency as the core motivation to adopt AI-led automation.

For CIOs and tech leaders, the role of digitization is evident on the origination side in enhancing the borrower’s experience. Apart from improving operational efficiency, there are many more things automation can do to streamline mortgage operations.

Digitally mature organizations are adopting new tools and technologies to achieve superior outcomes and delight customers. The relationship between borrowers and lenders is often built between credit approval and closure stages. During the countdown for the lender to complete the underwriting process and deliver the loan amount, technology can be a blessing to strengthen the relationship and foster trust.

Below are some of the advantages of using AI-enabled solutions for mortgage processing:

Breaking Barriers with Speed

In an industry where time is of the essence, swift processing isn’t an option but a necessity. An average lender who relies mainly on manual loan processing and underwriting could take around 40-50 days to close a mortgage. On the contrary, the top 25% lenders have reduced their mortgage cycle times by 30-50%.

What do the top performers do differently?

They embrace AI-powered automation to overcome the barriers associated with traditional mortgage processing and streamline workflows. As a result, the turnaround time reduces drastically. What took days or weeks can be accomplished in a fraction of the time, allowing lenders to stay ahead in a fast-paced market.

Accuracy in Data Capture and Extraction

Accuracy is non-negotiable in mortgage processing. Advanced technologies eliminate manual and paper-based processes, making data capture and extraction precise and error-free. Computer Vision often uses intelligent data capture with the help of a content flow and integrates it into your existing business flow and internal systems. It also offers secure data storage capabilities that help in data ingestion and capture from multiple sources.

You can extract data from multiple languages and classify documents using Natural Language Processing (NLP) and text analytics. Such intelligent infrastructure systems connect content from multiple channels – using information management, data capture, image repository, AI, and much more. Since it enables automation of various tasks that usually require human intervention, it saves time, too. In addition, AI and ML tools guarantee the highest accuracy levels, offering clients peace of mind and confidence.

Quality Assurance and Compliance

From data validation to document review, rigorous quality control measures ensure all processes meet the highest standards. Mortgage lenders often struggle with increasingly stringent compliance requirements, especially as regulations continuously evolve. Ensuring adherence to these regulations is essential as failure to comply can result in hefty fines and even lead to setbacks in operations.

While larger lenders have in-house compliance officers, smaller ones may choose to outsource compliance management. Automated software solutions can be invaluable in streamlining compliance processes and minimizing costs. Implementing such new-age technologies can help lenders mitigate risks associated with non-compliance and maintain financial stability and operational continuity.

Mortgage is a document-heavy process, and to drive efficiency, the processes need to be error-free, autonomous, and fast so that the fulfilment team can focus on high-value decisions instead of data-heavy chores.

Choose Visionet’s Tech-Forward Solutions for Process Efficiencies

Did you know that mortgage companies' NPS scores are around 30% lower than those of fintech SaaS companies? If you want to change this for your business, you can deploy new-age, tech accelerators from Visionet.

DocVu.AI, Visionet’s flagship IDP solution, converges advanced AI and document management to bring about a transformative shift in the mortgage industry. Using intelligent algorithms, the platform extracts and categorizes data with unparalleled efficiency, promising concrete return on investment for mortgage companies.

DocVu.AI has also received the Tech100 Mortgage Award by HousingWire, acknowledging our commitment to tailoring technology to meet the needs of modern enterprises.

At our AI/ML Lab, we help you enhance operations and speed up time-consuming tasks like gathering, reviewing, and verifying mortgage documents with cognitive abilities. Generative AI-based chatbots and virtual assistants offer personalized conversations and round-the-clock availability for your business. Similarly, conversational AI can be integrated into the software development lifecycle along with RPA/IPA for better efficiency.

Conclusion

Now it is possible for you to comprehensively address the challenges in efficiency and compliance by unlocking the potential of AI in mortgage processing with Visionet's cutting-edge solutions. With a successful track record of success and recognition from the industry’s best, Visionet truly empowers lenders to thrive in a dynamic market landscape. Stay ahead of the curve - partner with Visionet for dynamic, efficient, and customer-aligned mortgage operations.