Mortgage lenders are embracing disruptive technologies such as Artificial Intelligence (AI), Robotic Process Automation (RPA), Chatbots, etc. to gain a competitive advantage. The revolution in automation is also driving changes in loan origination, helping financial institutions like yours improve loan quality and decision- making, reduce costs and fight fraud.
The average per-loan cost to originate a mortgage in the US is around $8,475 and takes around 46 days. Given the above statistic and the process-oriented nature of the mortgage industry, the Robotic Process Automation (RPA) has emerged as the technology most impacting the industry. Let’s touch base Robotic Process Automation.
Robotic Process Automation (RPA)
- It assigning a software robot based on AI to perform routine tasks which are workflow-driven and rule-based aimed at automating business processes.
- It is a software technology/ Business process automation that allows anyone to define a set of instructions for a robot or ‘bot’ to perform.
- It is easy to build, deploy, and manage software robots that emulate humans actions interacting with digital systems and software.
Benefits of Robotic Process Automation
- RPA provides organizations with the ability to reduce staffing costs and human error.
- It streamlines workflows, which makes organizations more profitable, flexible, and responsive.
- It also increases employee satisfaction, engagement, and productivity by removing mundane tasks from their workdays.
- It can be rapidly implemented to accelerate digital transformation.
- It’s ideal for automating workflows that involve legacy systems that lack APIs, virtual desktop infrastructures (VDIs), or database access.
Robotic Process Automation (RPA) in Mortgage Industry
RPA implementation in mortgage banks would allow the employees to focus on strategic, value-added activities which can result in better customer experience, while the bots can be leveraged to significantly improve loan processing. RPA represents an incredible opportunity to fundamentally change the way mortgage lenders work.
- The main area where RPA can be leveraged for Mortgage is in Loan origination and processing.
- Through the application of rule-based algorithms, RPA solutions can ensure data is more accurate, increase turnover time and implement better reporting.
- The verification of pre-funding data, tasks related to ordering services such as credit, title, flood and the Quality audits of documentation submitted are areas where RPA can be used as these can be achieved by automating repetitive and time-consuming manual tasks.
- RPA can be applied in the mortgage industry is Risk and Compliance oversight as it helps in the reduction of risks from human errors, but it has also robust compliance reporting and risk mitigation.
- RPA can gather, and process data related to the mortgage applicant from both internal and external sources, it would result in freeing up 20%-30% of underwriters time resulting in faster time and more accurate reports.
- The application of Cognitive Process Automation to underwriting would enable lenders to improve how they determine and underwrite their exposure to risk.
Benefits of Robotic Process Automation (RPA) in Mortgage Industry
One of the strongest benefits of RPA in mortgage processing is that it helps to systematize, standardize and rigorously define all processes within a lender’s operations.
- Enhanced Productivity – RPA would help in reducing the average time required to process a mortgage loan resulting in reduced cost and increasing the efficiencies. This also helps in delivering more loans in less time.
- Higher Data Accuracy – Implementing RPA would result in higher data accuracy as the automation would help remove the errors that creep in because of human intervention.
- Better Customer Experience – Deploying RPA enables an organization to dedicate the time of their employees to ensure the optimal customer experience is delivered. It also helps in increasing the services levels.
- Better Fraud Detection – RPA implementations results in higher quality verified data, which produces a higher level of compliance and a higher degree of risk mitigation.
- Disruption to existing systems – Given that RPA is built on top of existing systems and hence there is no need to replace/upgrade existing systems, applications or infrastructure.
- More Consistent and Defined Workflows – RPA allows to define and regularize the entire process for better efficiency. from data entry, to document collection and routing, task assignments, email notifications, processing, etc. there are way too many variables for lenders to set up particular processes for.
- Easier Auditing – RPA process automates documentation and other lending processes, it enhances the ability to respond quickly to risks, mitigate them and implement better and more cohesive compliance guidelines.
Mortgage RPA software provider:
“Early adopters of technology often have the greatest to gain as a result of driving innovation, but change cannot be ignored and the mortgage approval process will always evolve to meet the expectations of the market.”
Robotic process automation solutions can help mortgage banks improve the effectiveness of services faster and at a lower cost than current methods.
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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.
