Why is Mortgage Automation Important to the Mortgage Underwriting Process

Mortgage automation has proved to be a boon for mortgage enterprises because it enables the enterprise to cut down the time required to approve a loan significantly. Mortgage underwriting automation helps loan seekers to submit documents such as credit scores, income statement etc any time of the day. This empowers the mortgage provider to analyse the borrower’s credit worthiness very fast. The mortgage providers are able to provide crucial information such as the loan rates, loan closing rates etc, to the borrower in a very short span of time.

Mortgage automation has improved the working experience for mortgage underwriters by taking over their back-office operations such as income verification, or assessing loan to value ratio. Mortgage automation has helped mortgage underwriter improve their focus on loan decision making.

Benefits of mortgage automation in the mortgage underwriting process

·         Better productivity

Mortgage automation has given underwriters all the tools, data and support they need to perform their jobs efficiently. They are no longer burdened with basic and receptive tasks like verifying documents, rules checking etc. This helps the mortgage underwriters to make accurate and risk-free credit decisions.

·         Improved Customer Experience

Prior to mortgage automation, the underwriting process were limited to the bank’s working hours. It took the underwriting weeks to either approve or deny the loan. Mortgage underwriting enabled the loan seekers to upload the necessary documents online, anytime.

·         Cost-effective Solution

Mortgage automation has done way with the need for hiring a lot of people to do all back-end tasks associated with mortgage underwriting. The cost of automation is a fraction of the cost that the mortgage enterprise would have to incur to maintain staff to do all these jobs.

·         Compliance and preventing frauds

Robotic Process Automation has eased compliance demonstration. It seamlessly recognizes irregularities such as multiple addresses and employment gaps, in the documents submitted by the loan seeker.  Underwriters can easily recognise fraudulent activities with the help of mortgage automation. This reduces the lending risks associated with mortgage loans.

·         Forecasts

In the absence of mortgage automation, underwriters would have to go through mountains of paperwork to find any information. Mortgage automation has enabled underwriters to pull-out any data they need with a click of a mouse. This easy access to data has empower them to accurately forecast variables such as profits & losses, and upcoming opportunities and threats.

·         Higher rates of Accuracy

A loan file might have over 700 pages, and it is highly likely that manual processing of such files will have many errors. While the chances of a mortgage automation tool committing errors are next to zero

The benefits of mortgage automation have ensured that it is here to stay. It is hardly a surprise that most mortgage providers want to move the mortgage experience to turn 100% digital.


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