Transform Mortgage Loan Origination with Intelligent Digital Solutions

Today mortgage lenders face unprecedented challenges in this fast-paced and competitive marketplace. The need to streamline operations, optimize costs, and provide a seamless user experience has become more crucial than ever. As per McKinsey, digital transformation practices and enhanced customer experience result in about 20-30% customer satisfaction and up to 50% profits.

Indeed, digital transformation cannot occur overnight, but lenders can adopt some fundamental solutions to start their journey.

Digital Solutions for Mortgage Lending – Key Benefits

1. Maximize efficiency with automation

Banks and lending institutions see automation as a synonym for savings, i.e., saving time, money, and effort. They’re embracing low-code and no-code solutions, including Robotic Process Automation (RPA) and AI-powered document extraction. With the help of automation tools, mortgage lending businesses can streamline their labour-intensive processes, reduce costs, increase the team’s overall productivity, and quickly scale with demand.

From digital boarding, document management, and underwriting to calculating real-time mortgage pricing options, meeting industry standards, and staying compliant, intelligent automation solutions can improve the overall mortgage loan origination process.

2. Make informed decisions with data analytics

The mortgage lending industry has to deal with large volumes of data daily, which consumes immense time and effort. Advanced analytics solutions based on predictive analysis techniques, machine learning algorithms, and business process automation enable accurate analysis of customer information, anticipate risks, and make informed decisions. Here are some ways in which advanced analytics has revolutionized the traditional mortgage lending process:

1. • Analyze data to recruit the best human resources
   • Improve lead generation and management
   • Live monitoring of loans across products and channels
   • Steer large-scale pre-approvals and instant loan decisions

3. Enhance user experience with Conversational AI

Implementing AI, ML, and NLP is the new revolution in the mortgage lending industry. To maximize the user experience, industries are delivering truly ‘phygital’ lending experiences. From chatbots, virtual assistants, and smart dashboards, to responsive UX and contactless payments, lending institutions are aggressively investing in advanced technologies to deliver ultra-personalized customer service from the moment the homebuyer lands on the website. Some advantages of advanced interactive technology are:

1. 1. • Round-the-clock services
      • Human-like interaction
      • Accelerated response time
      • Personalized experience
      • Increased lead generation possibilities
      • Cost optimization

4. Accelerate mortgage experience with APIs

Mortgage lenders are implementing mortgage software using application programming interfaces or APIs to increase efficiency and provide comprehensive services across the ecosystem of borrowers, regulators, and partners.

While many mortgage lending companies struggle to maintain margins due to costs, low-interest rates and emerging competition, APIs revolutionize the mortgage process to increase productivity and overall turnover. Here are a few benefits of APIs:

1. 1. • Speed up application development
      • Seamless integration with existing and new features and technologies
      • Data consistency and accuracy
      • Better compliance
      • Automated workflows
      • Better monetization via data or service ordering

Adopting Digital Solutions for Mortgage Loan Origination

Mortgage lending is heavily data-driven, from initiating and underwriting to post disbursal and servicing. It is imperative for mortgage lenders to capitalize on digital solutions to streamline their procedures and efficiency.

With intelligent digital solutions, mortgage lenders can optimize the loan processes and meet compliance with the ever-changing regulations, deliver services in a shorter time, and maintain robust systems for consumer data security.

The Digital Knowledge Operations (DKO) ™ framework is a tailored solution approach that helps mortgage lenders and other financial service providers transform their business and technical operations in a customized and cost-effective manner.

For example, the DKO™ approach helped a US-based mortgage lender re-engineer the business processes to enable agile service delivery. It also helped the company adopt optimal digital solutions, including the RPA tool and SMART dashboard, enabling approx. 15% improvement in the closing cycle time and 20% efficiency improvement.  Read this case study for more details.