How to reduce the loan life cycle leveraging technology

According to Fannie Mae the average closing time for a new purchase is 46 days, and 49 days for a mortgage refinance.  Common reasons for delays include incomplete loan application, missing documentation, low appraisal, delay in completing underwriting requirements etc. Mortgage companies can improve upon the existing internal processes and workflows using technology solutions that can eliminate days and potentially weeks of loan processing time. Automation and digitization at both ends – borrower end as well as lender end, is the key to achieving significant reduction in loan processing time.

Online Loan Application

• Electronic loan application which captures borrower information seamlessly

• A well thought out design for the application such that it’s easy for borrowers to complete and submit.

• Including the loan application as part of a point-of-sale application and not as a separate system.

• Employing AI solutions and business logics to create needs-lists for borrowers immediately after successful submission out based on the contents of the filled out application.

• Prompt Notifications and alerts integrated with the Loan application can inform borrowers about incomplete loan applications, document submission deadlines, errors in the submitted documents.

Document Collection

• Provide a secure and intuitive portal which can be accessed from any device for borrowers to upload supporting documentation.

• Requesting documents immediately through the same portal as part of the application process.

• Eliminate the need for manual uploading of documents by accessing data directly from appropriate data sources- bank accounts, investment accounts, payroll processing systems, tax return data, and other important data repositories using data integration through third party APIs.

• Employing AI and ML algorithms to further streamline document management by handling Data Extraction, Data Classification and Data Validation through intelligent systems.

eSignatures

• eSignatures help in completion of the sending and signing of disclosures as quickly as possible so that TRID-imposed disclosure deadlines are met.

• Send the Closing Disclosures (CD) and closing documents electronically and obtain electronic signatures on those documents.

• Obtain eConsent acknowledgment from the borrower early in the process, by embedding the eConsent form within the Loan Application.

Data Integration Platform

• Mortgage banking technology involves multiple vendors and players providing specialized dedicated services across various product types.

• To reduce manual intervention and cut down loan processing time, it is necessary for Mortgage Banks to have a data integration platform that provides secure integrations to value-added third-party vendors.

• Borrowers can expect quicker loan processing and funding with access to latest and accurate information from the source.

Tools/ software available for reducing the loan processing time

Following is a comparison between different tools available in the mortgage market which helps mortgage lenders process more loans faster, while offering customers a superior borrower experience.

Floify tops the list by providing an elegant point-of-sale solution that streamlines the loan process by providing a secure communication and document portal between the lender, borrower, and other mortgage stakeholders.

Looking for more information on Mortgage Tools/software to streamline your mortgage process or need help in choosing and implementing the right one, leave us a message.

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