Mortgage lenders are looking to optimize their Mortgage banking Ecosystem in a fast-changing landscape. The transformation of the Mortgage industry’s is imminent. Coupled with advancements in technology and evolving consumer expectations, today’s lending landscape is as complicated as ever.
- Mortgage lending is a collaborative venture. Lenders partner with an array of service providers including credit, flood protection, fraud prevention, compliance, appraisal, title and insurance providers, along with income, employment and asset verification providers.
- Traditionally, this has been paper-based work, with information passed between partners in documents and forms. This process created significant time delays and mistakes that led to inconsistent and inaccurate data resulting in low quality files and higher loan origination costs.
- Failure to provide accurate loan status information to applicants is one of the leading causes of poor borrower satisfaction. When loan status automation is lacking, staff may be unable to confirm precisely where the loan is in the process when a borrower contacts the lender directly.
- Frequent requests for information previously submitted can make applicants feel like the lender is not taking adequate care of their sensitive private information.
By creating a Optimized Mortgage Banking ecosystem around the lending experience, lenders have the opportunity to streamline processes and exceed borrower expectations. In this article, we will explore ways lenders can make the kinds of changes that are needed to Optimize Mortgage Banking Ecosystem.
Rules-Based Workflow – System Integrations:
Automation plays a critical role in the Optimized Mortgage Banking Ecosystem – for increased productivity and dramatically enhanced customer experiences.
- Lenders should partner with third-party providers like Encompass 360 to complete the loan origination process, the data moving through third-party systems will flow into the lender’s LOS.
- Connecting systems and speeding workflow provides immediate near time benefits.
- Integrated servicing for continuity in customer service.
- Quality data sources for better lending decisions.
- A faster process allows lenders to respond to qualified applicants faster and capture more loans.
- Replacing manual steps with automation results in a more integrated task flow that reduces transaction costs.
Robust APIs and Data Access:
- An API-based architecture enables lenders to automatically obtain data for the borrower, property and loan by querying data providers and analyzing, validating and presenting the results they return.
- This allows lenders to close loans faster by automating routine activities and focusing staff time on work that requires human intervention and analysis.
Borrower-Focused, Web-Based Experiences:
- A holistic lending ecosystem allows borrowers and users to self-serve but remain connected in real time to the loan officer, the loan processing department and closing personnel.
- By being selfserve but providing the option of getting help at a moment’s notice on any device, borrowers are able to be supported while also being in complete control.
- Communication methods are subscribed to and automated to ensure the applicants are continuously updated with the appropriate information and to the right media.
Optical Character Recognition (OCR) and Intelligent Character Recognition (ICR):
- OCR and ICR are common deployments of artificial intelligence in the lending process.
- Efficient platforms are capable of electronically obtaining necessary information from documents when they are not already digitized to support the process of aligning file documentation with the LOS record.
- Automated work queues should route work to the right party and provide status information in real time.
Digital Compliance Analysis:
- Adhering to compliance rules set by the lender and/ or its compliance partners automatically, based on loan file and program characteristics, is an important component of a digital lending ecosystem.
- An ideal system can automatically generate reports, audit trails and trending data to streamline systems and bring process flaws to light.
- The challenging objectives such as Fair Lending requirements due to the nature of increased future file scrutiny that is sure to come with enhanced regulatory reporting.
- Specifically, new HMDA reporting data will allow regulators to analyse rate, fee and file decisioning activities against protected classes.
- Competitive lenders will embrace a holistic approach that drives every digital process, aggressively removing paper through e-signing and automated document routing systems that ensure accurate data flow to end investors and servicing platforms.
- Such an approach can speed up the loan origination process and reduce costs and errors by providing electronic document processing and electronic signatures from end to end, completely avoiding the manual processing of paper forms.
- This complete e-lending process will also require support for notary, recording, investor delivery and e-vaulting.
An Optimized Mortgage Banking Ecosystem is designed to provide optimal benefits including the following:
- A streamlined mortgage origination process resulting in better borrower experiences and higher data quality.
- Lower loan origination costs with the aim of full compliance.
- Seamless integration with third-party data providers resulting in an ecosystem that ensures success for all parties, including the borrower.
Please refer “TOP 3 MORTGAGE BANKING BI TOOLS AND ITS IMPORTANCE“.
Looking for more information on integrating Encompass 360 with Velocify or need help in integrating right technology, leave us a message.
Take Five Consulting is a technology company, based in Virginia U.S., that specializes in the Mortgage Banking vertical especially LOS implementation and application development. Take Five Consulting creates and implement mortgage technology and software specifically for Mortgage Industry.