In an environment of continuous operational and regulatory change, rising origination and operational costs, Business Process Automation (BPA) applications that execute routine, rules-based tasks without human intervention can significantly improve the mortgage loan experience and bring down the costs in Mortgage Industry.
Use cases of BPA in Mortgage Industry
Document Management :
Automatically read, compile and cluster data pulled from multiple sources and in multiple formats.Regulatory Compliance:
Processing audit trails on frequent intervals that demonstrate adherence to and deviations from updated rules and regulations.Workflow management:
Enhance the workflow management by sequencing the order of operations and managing the loan pipeline and tasking functions.Mortgage fraud detection:
BPA applications perform the fraud analysis tasks by employing configurable business rules to identify loans that require fraud analysis.Document Verification:
Automatically verifies accuracy of information on borrower forms, including validation of income information entered on loan applications and W-2 forms, identity and asset verification.Loss mitigation/foreclosure checklists:
Automating the process to pull data from the servicing system and third-party sources to create checklists for analysts to evaluate loss mitigation and foreclosure options.
Benefits of BPA in Mortgage Industry
Automation will reduce or eliminate inherent risks from manual processing such as keying errors, missed tasks, and misapplied rules.
Automation of manual processes can reduce operational risks ensuring higher quality and consistency in transaction processing.
BPA can mitigate the inherent risks involved in conventional data validation processes by using automated techniques for data gathering, automated rules- based validations, and data validations.
Automation increases availability of human resources to pursue higher level cognitive tasks.
BPA applications can provide a richer data environment that can support improved risk/exception reporting.
Automation will change the requirements for quality assurance and quality control testing, as automated components of the operations will reduce the human error risk and leave an auditable trail of records.
With workflow automation, Mortgage lenders have Improved Visibility into the Lending Process with ability to gather data for analytics.
Challenges in Implementing BPA in Mortgage Banks
Unstructured data:
With the level of unstructured data in a typical mortgage process, it requires an intense initial analysis to identify processes that can be subject to BPA.Managing process changes:
Business Processes automated using BPA needs to be updated on a constant basis to process changes and rapidly changing regulatory compliance requirements.Diverse data formats:
Multiple training modules need to implement in the processing involving document analysis since there could be different data formats used for exchanges between the lender and the customer during mortgage processing.
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