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How Intelligent Automation Is Re-imagining the Mortgage Business

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When Atlantic Home Loans needed to speed up their back-office processes for mortgage origination, they turned to an Agile Mortgage Solution to transform the way that the company processed its data.

The senior leaders of Atlantic Home Loans (AHL) were looking to make some changes. For too long, they had been listening to customers complain about how long it took to finance a mortgage, especially compared to almost every other financial service they enjoyed, and how opaque the whole process had become. AHL had invested in a slick front-end interface for onboarding new customers that worked well and people enjoyed using. But that great front-end experience only made the long wait for a result more glaringly obvious and unacceptable.

They decided to try and reimagine the whole business, using intelligent automation as a tool to transform all aspects of the mortgage business. 

Identifying the Issue

The thing consumers want most of all, according to most studies, is speed and efficiency – and AHL’s new system had not delivered that.

They realized that most of the bottlenecks in the system that were causing so many delays were in the back office with their employees who were tied up doing manual data capture tasks. So they set about integrating intelligent automation with their employees and their front-end interface to create a truly ground-breaking online mortgage process.

“Back office activities, such as those that include the collection, extraction, and verification of a borrower’s information have largely remained manual – meaning that while the initial application may be completed quickly, prospective borrowers are still forced to wait weeks for the mortgage to close,” explains Javelin in its new Agile Mortgages case study for AI Foundry.

Consumers have grown impatient with the nature of mortgage applications, and they are demanding change. The companies that can deliver on that challenge, whether an established financial institution or a fintech startup, will be setting themselves on the path to remarkable growth in the coming years.

Reimagining the Mortgage Business

When a company wants to break down its systems to put them back together again, it needs to “question every aspect and stage of the mortgage origination workflow.”

One of the first discoveries that Atlantic Home Loans made was that there was a number of “mundane, time-intensive tasks that contributed little to the customer experience or the sales success of the organization.” Quite the opposite, in fact.

Data extraction and calculation, two tasks that were tailor-made for automation, were slowing down the process and frustrating the staff tasked with working on them.

When an exhaustive review of the back-end processes was completed, it became obvious that any technology solution needed to be flexible enough to address a collection of issues all at once. The company entered into discussions with AI Foundry, and together they settled on an intelligent automation platform designed to help lenders optimize processes throughout the mortgage origination lifecycle.

The behind-the-scenes applications where Agile Mortgages is set to play a critical role include:

  • Appraisal Review: Extract data from appraisals and subsequently provide guidance to reviewers. Look for keywords that indicate potential problems and refer them to reviewers.
  • Insurance Requirements: Engage with the borrowers on their homeowner’s insurance requirements. Program the requirements into the system and direct users to a page that evaluates their compliance with those requirements.
  • Purchase Advice: Focus on B2B relationships with lenders. Automate receipt, extraction, and verification of data from investors’ purchase advice documents. Input each investor’s specific format into the Agile Mortgages platform and route it correctly to avoid tedious manual input.

Watch this short video to understand more about our Agile Mortgages Solutions.

Realizing the Benefits

Taken together as a bundle of efficient initiatives, the Agile Mortgages solution for AHL should result in a significant increase in the amount of time saved. It should also foster the development of a new workflow that will lead to new insights and dramatically reduce the importance of manual processes among staff such as underwriters and processors.

That level of daily, manual input among staff (the so-called stare and compare method) is responsible for many of the errors which creep into, and pollute, a data capture operation. It’s vital to minimize errors through automation.

As a result, those staff members can be redeployed to work on areas of the business where they can use their skills properly and add real value, rather than being stuck manually inputting data all day long. “Automating lower-value processes is anticipated to save 25% to 50% of team members’ time,” according to the Javelin case study of AHL.

Completing the Circle

Consumers are now fully immersed in the convenience and speed of living in a digitized economy, where big data, analytics, and mobile technologies combine to offer dazzling products and services. They see it in banking, and now they demand to see it mortgages, too.

Atlantic Home Loans saw the movement and responded in a smart, inclusive way.

When potential consumers experience a good front-end interface, they assume that the other end of the process has also been optimized. If it’s not, it undermines their faith and trust in the institution. Companies need to complete what they have started and deploy smart technology, such as Agile Mortgages, to deliver on what they have promised.

You can download the Agile Mortgages Case Study: Atlantic Home Loans right now.

To speak to AI Foundry about what they can do for your back office, get in touch with our customer support office today.