What Lenders Need to do to Speed Up the Production of High-Quality Loans
June 28, 2019
The mortgage industry has been known to be anything but fast. However, as lenders are moving towards leveraging cutting-edge technology to make the entire process more efficient, a shift in processing speeds is occurring. It is vital for a business to provide mortgage loans within hours rather than within days, given that all their competitors are embracing cloud computing, automation, and AI integration to rapidly reduce their delivery times. So what strategies can mortgage lenders employ to curtail their loan processing and production times? Here are a few important ones you can consider adopting to that end.
Automate Data Extraction
During the onboarding process, it is crucial that all the documents received by the lender contain complete and accurate data that is needed to verify and determine whether an applicant can secure a loan or not. Automation can help to this end as it can transform applications by retrieving data with accuracy, reliability, and speed.
Look beyond optical character recognition (OCR) to automated document recognition (ADR), which is powered by machine learning, to handle a broad range of document types (both unstructured and structured), to enhance mortgage document classification with ease and speed. Through specific guidelines and rule engines, this solution can also help identify data inconsistencies, errors, and missing documents so that pull-through rates continue to improve over time. Cycle times that are extended can lead to lower rates, so it is best avoided through the use of automation solutions such as MSuite.
Streamline Data Comparisons
In the past, lenders had their staff pore through a multitude of Office and PDF documents to compare different documents for data accuracy and errors. This was not only demoralizing for staff who were looking to do more fulfilling work, but also reduce accuracy rates due to human errors brought on by fatigue or boredom.
Automating the comparison of data across applications and data sources to evaluate the quality of a loan is by far a more effective method to incorporate. It is also vital that your new system creates an audit trail that can be tied back to the original documents submitted so that external audits are carried out without any hiccups or delays.
In having automated most of your back-end business processes, your key staff are left with more time to effectively work on their skills and help solve critical business problems with more analytical and creative thinking. Lower level employees can then be entrusted with more detail-oriented and time-consuming tasks that cannot be left to automation. It is by optimizing your workforce that you are effectively positioning yourself as an industry leader.
Efficient Application Packaging
When it comes time to package the mortgage application to deliver to a government or investor enterprise, a lot of the time, the final stage’s execution is slow or chaotic. It is just as important to aim for efficiency at this stage so that the whole delivery process does not suffer and production can be maximized. A good delivery system will come with a checklist of documents and approvals, will issue timely alerts should any problems arise, and provide you with notifications when your package has been successfully opened.
Effective collaboration has always been important in getting things done. Without it, there are major delays, undue complications, and severe disappointments that could have otherwise been avoided with the right processes in place. To deliver high-quality loans, loan officers need to engage in structured collaborations with their clients and with their peers. By easily accessing the same documents and tools through a shared workspace, lenders can look forward to improvements in production, while also reducing IT operating costs.
Though it is easier said than done, there are useful strategies that can be implemented to improve the production of high-quality loans. From workforce optimization, to data extraction automation, and effective collaboration, lenders have a few ways by which to gain efficiencies and improve overall production quality. To stay ahead of the curve, you may have to be among the first to invest in these technologies and processes, or risk falling by the wayside.