Mortgage industry is witnessing a paradigm shift where traditional processes are giving away to digital innovation and AI driven solutions. Far sighted leaders who helm the mortgage banks must embrace these new technologies to stay competitive in this current mortgage marketplace. In this comprehensive blog, we will explore five key game changer technologies which transform the way mortgage banks currently operate and serve borrowers.
Artificial Intelligence and Machine Learning
- AI powered UW engines can look through the data of the borrowers (banks statements, credit report, tax returns, and income statements) at breakneck speeds to determine the creditworthiness of the borrowers.
- Natural Language Processing (NLP) can extract data from the documents submitted by the borrowers and populate that information in the right places within the LOS (like Encompass 360) for swift processing.
- AI powered fraud detection systems can analyze borrowers’ documents and profiles to flag any suspicious activities in application data or identity theft.
- Intelligent workflow routing algorithms can automatically assign the loans to loan officers and loan processors based on complexity, workload and individual specialization.
Robotic Process Automation (RPA)
- RPA bots can automate repetitive, rule-based tasks like ordering credit reports, title searches, flood certifications without human intervention.
- RPA tools like Microsoft Power Automate integrate with the existing systems without requiring sophisticated custom development or infrastructure changes.
- Quality control bots can look through the loan files for missing data, loan completeness, and compliance misses prior to loan closing.
- Data entry bots can extract and populate the data from loan documents into multiple systems eliminating duplicate data entry and reducing manual errors.
Block chain technology
- Smart contracts built on blockchain technology can automatically execute when preset conditions are met thereby accelerate the closing process and reducing manual intervention.
- Digital distributed ledgers accessible to all parties – borrowers, lenders, investors, title companies – increases the transparency with real time access.
- The tamper proof, immutable nature of the block chain solutions enhances audit trails and compliance documentation.
Advanced analytics and BI platforms
- Real time dashboards with advanced analytic features will help mortgage banks and lenders to take data driven decisions based on the insights provided by these business intelligence tools.
- Lenders can get a bird’s eye and drill down real time visibility into the different aspects of the loan operations from loan officer performance to loan profitability to pipeline health.
- Predictive analytics can predict the loan performance and loan volume based on past trends and historical data, considering the current market scenarios.
- Customer analytics will identify the marketing channels which gave the better ROI in terms of lead quality and loan profitability.
Digital Mortgage Platforms with advanced features
- Digital mortgage platforms enable borrowers to complete the entire mortgage application online at their convenience thereby meeting the borrower expectations.
- These platforms help borrowers to securely upload their documents online, view the disclosures in a separate borrower portal and e-sign them.
- The integration with LOS platforms, title companies, settlement agents, closing agents, and title agents will make sure that data flows seamlessly between the platforms.
Looking for structuring your systems and tech for modern mortgage age or need help with implementing any technology solution within Encompass, leave us a message.
