Mortgage industry has started embracing API technology. The basic for a successful digital lending strategy is having the appropriate technological infrastructure. Banks and other lending institutions provide APIs to make it easier for consumers to explore their loan options. Let’s know about API and its benefits in mortgage industry.
Application Programming Interface (API)
- Application programming interfaces, or APIs, simplify software development and innovation by enabling applications to exchange data and functionality easily and securely.
- It enables companies to open up their applications’ data and functionality to external third-party developers, business partners, and internal departments within their companies.
- It allows services and products to communicate with each other and leverage each other’s data and functionality through a documented interface.
- An API is a set of defined rules that explain how computers or applications communicate with one another.
- It acts as a moderator between an application and the web server, acting as an intermediary layer that processes data transfer between systems.
- It help lenders and servicers streamline operations and improve communication, thereby delivering better customer service.
How does an API work?
- A client application initiates an API call to retrieve information—also known as a request. This request is processed from an application to the web server via the API’s Uniform Resource Identifier (URI) and includes a request verb, headers, and sometimes, a request body.
- After receiving a valid request, the API makes a call to the external program or web server.
- The server sends a response to the API with the requested information.
- The API transfers the data to the initial requesting application.
Benefits of API
- It offer convenience and time savings via workflow automation. Mortgage servicers can use APIs to automate reports and programs which in turn leads to reduction in human errors and saves time.
- APIs enable secure connections between loan origination and servicing software eliminating the need for manual entry of data in each system.
- API lets mortgage professionals seamlessly order fulfillment services from various service providers or share data across platform and allows lenders to remain in one system to provide support to their customers.
- APIs can be used both internally and externally to streamline data transfers.
- An internal API may help to simplify origination or servicing, while an external API allows borrowers to obtain or submit information.
- By utilizing APIs, lenders and servicers expedite processes and eliminate errors, allowing them to more quickly and accurately deliver updated statements and loan information to borrowers.
- Through API, Borrowers gain immediate, real-time access to their specific loan data and statements and can conveniently make online payments 24/7.
- An API Integration between the CRM and the LOS will keep both systems aligned in the data they are storing about the borrower.
Types of APIs used in Mortgage Industry
There are various types of APIs specifically developed for the mortgage industry. They are:
- Open Banking
- Digital identification
- Automated valuation
- Anti-money laundering
- Mortgage Application
- Property data enrichment
The Floify application programming interface is free for developers to use to create more software in the home mortgage industry.
Looking for more information on integrating Encompass 360 or need help in integrating with right API, 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.