The automation revolution is finally reaching mortgage loan origination. Cross-industry data shows enterprises spanning all walks of life seriously investing in automating as one of the central functions of their business models. But, as we know, the mortgage and loan profession often plays by a different rulebook to other sectors – the ad-hoc, changeable nature of each individual account means that streamlining loan origination processes is only possible with advanced, custom-built technology.
Fortunately, those tools are now becoming more widely available, and lenders are reaping the automated rewards. In this article, we dive into four ways automation is already shaping mortgage loan origination practices and helping mortgage professionals in their quest for efficiency and customer satisfaction at each step of the process.
Fast-tracking Mortgage Loan Origination Practices
Have you noticed, that unlike professionals from other industries, many lenders still deal with manual systems and paper-based operations? Doing business with an increasingly digitized audience means the long wait times and over-complicated processes are resulting in frustrated and dissatisfied customers (and unnecessarily high labor costs). These outdated practices have made consistency difficult and the auditing process unnecessarily lengthy.
But through automation, loan originators are moving away from cumbersome spreadsheet-driven methods. From indexing and extraction to filing and credit, using software like ReadyPrice to reliably manage small to large tasks is leaving lenders with time for more high-value priorities.
Effective Customer Portfolio Management
Vetting new clients and collaborators is an integral part of the loan origination business which can now be automated. Traditionally, collecting data for this process consisted of time-consuming form filling and, quite frankly, moving piles of printouts back and forth for firm collection. Beyond the inefficiency, these practices come with a greater risk of inaccuracies and data protection breaches.
Automation is playing an important role in speeding up the data collection process. Some software, including ReadyPrice, even facilitates the online onboarding of new and existing clients and collaborators through a customized online platform for a lender’s business. Now, additional documents and sensitive information can easily and securely be exchanged at the click of a button.
Facilitating Credit Presentation & Decision-making
Credit applications; long delegated to manual operations and resulting in an endless and mind-numbing collection of forms and documents. Consumers know it’s unnecessary when they can access their credit score so easily on other industries’ platforms. Along with dragging out what could be a much quicker ordeal, manual processes take up a lot of the loan originator’s brainwork that could be better spent on other parts of the MLO process.
At the loan approval stage, automation now helps loan professionals make quicker credit decisions thanks to accurate, real-time data. The same data can also be used to project best and worst-case scenarios. This way, loan originators are making informed decisions and conducting thorough risk assessments before moving to the next step.
Optimizing Covenants and Monitoring
Decades of manually-kept records can really get in the way of efficient risk assessment relative not only to the loan originator process, but the asset itself. Spreadsheet records are not up to the task of collecting financial data for tickler systems and covenants in a fast and secure fashion. Then, there’s the matter of storing and protecting them.
The automation of covenant/tickler processes can ensure all information is up-to-date and easy to access. Furthermore, it keeps all parties in the loop and alerts them of any breaches or missed deadlines, keeping the process on schedule.
Remaining Relevant in an Ever-Transforming Landscape
It’s inevitable that the loan originator business will continue to evolve in the years to come.
While some companies remain attached to traditional methods, the trickle-down effect of holding onto legacy practices is inefficiency that eventuates in the loss of business. This is because, as competition becomes fiercer, clients and prospects shy away from joining forces with brick-and-mortar firms in favor of those leveraging more agile, secure, and automated processes.
Adopting latest-generation loan originator technology is becoming paramount for the success of any modern-day lending enterprise.
ReadyPrice is dedicated to empowering MLOs; not only to take back control of the loan process, but also independently manage pricing and take advantage of automated methods of streamlining and simplifying operations. Their innovative digital ecosystem for loan pricing, underwriting, and delivery frees up professionals to refocus their energy on what matters most: customer relationships, risk assessment, and exploring new possibilities for growth.
If you are interested in unlocking your business’s potential and discovering new opportunities to utilize state-of-the-art automation specifically designed for mortgage loan origination, ReadyPrice can help.
Contact ReadyPrice here to schedule a meeting, demo or start a free trial.