Accelerating Mortgage Processing: How Automation Transforms Loan Origination

Boil down the Mortgage processing time faster than industry average

It's a time world, and loan origination is no exception. However, in this time of technological nirvana, 65 percent of the process still consists of human labor and mental work, consuming an average of 35 to 40 days for loan closure. This additional time is gnawing away at the lenders’ profit margin since production costs are escalating, including salaries (employees), overhead for various equipment, commissions, and operational costs. To remain competitive, lenders need to transition from outdated processes to advanced, digital solutions for lenders that not only reduce processing times but also improve efficiency, accuracy, and the overall customer experience.

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The Need for Automation in Mortgage Origination

The first stages of the loan origination process usually tend to have the maximum paper load and time-consuming elements. By adopting loan automation software, lenders can eliminate bottlenecks, simplify workflows, and reshape their business model to be more digitally focused.

Here’s how lenders can leverage automation to redefine loan processing:

• Automating Data Capture and Collection:

Replace manual data entry with automated software that pulls information and verifies it live while reducing human involvement, hence cutting down on the chances for errors and improving speed.

• Facilitating Digital Verification:

Implement end-to-end digital solutions for lenders to validate documents, credentials, and borrower identities seamlessly.

• Processing and Underwriting Streamlined:

Let AI and machine learning tend to the underwriting processes so they can handle decisions fast with accuracy.

• Enable Document Generation and Electronic Delivery:

Digitize the process of generating and delivering various important documents such as initial disclosures and closing statements to the involved parties in a timely manner and efficiently.

• Real-Time Stakeholder Integration:

Use centralized loan automation software to connect lenders, service providers, and settlement agents, facilitating smooth data flow and improved collaboration.

• Inauguration of E-Closing Solutions:

Promote e-closing, recording, and vaulting processes so that transactions can be performed electronically without causing delays.

• Automation of Workflows:

Stabilize intelligent workflow systems within the LOS for autonomizing repetitive jobs, thus releasing human resources for strategic work.

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The Operational Benefits of Automation

By combining a host of advanced technologies such as APIs, microservices, artificial intelligence, and machine learning, lenders can revamp operations to produce demonstrable results:

1. Accelerated Pre-Approvals: Poll borrowers with enough data, allowing pre-approval with a single click, thus eliminating weeks from the initiation of the loan process.

2. Faster Refinancing: Complete refinancing in mere days using purely digital verification processes.

3. Reduced Time to Process: Reduce processing time by a bare minimum of 50% for purchase loans while maximizing operational productivity.

4. Better User-Experience: Offer borrowers a pipeline-less, digital-first experience that provides better satisfaction and loyalty.

5. Optimizing Costs: Maximize process efficiencies, which enables lenders to manage the operations with less manual effort, which in return allows them to realize savings in action.

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The Future of Loan Origination

Automation is not only a solution but also a necessity to survive in this competitive marketplace. Investments in digital finance and accounting solutions for lenders and loan automation software are increasing worldwide, as forward-thinking organizations recognize the transformative potential of automation. At One Point One Solutions, we understand the challenges lenders face in a rapidly evolving environment. With extensive experience in BPO and technology-enabled solutions, we empower financial institutions to embrace automation and modernize their loan application processes.

One Point One Solutions provides a comprehensive suite of capabilities to help lenders maximize operational excellence, ranging from streamlining data capture to implementing intelligent workflow systems. We can help to reduce the time taken to process loans, increase customer satisfaction, and open up new avenues of growth.

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