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Productivity Leads to Profitability: Four Ways Technology is Transforming Mortgage Origination Systems

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Lenders across America are experiencing an unprecedented wave of new applications. In the wake of the coronavirus, record low interest rates and a surge in unemployment, people are looking towards the value of their homes as an asset they can leverage.

Refinancing is at record highs and showing no signs of slowing down.

The Financial Times calls it ‘a tidal wave of refinancing demand’ and notes that lenders are ‘adding staff to cut through the massive backlog of applications and cutting back on marketing to slow the stream of incoming business.’  

Productivity is the key to success during these unprecedented times. Lenders need to be working at a higher, more efficient level than ever before. As a team leader of a financial institution, how can you help your loan officers achieve better results? We believe that it’s by enabling them through technology. At AI Foundry, we have spent the past few years developing Artificial Intelligence and Machine Learning solutions that transforms the workplace experience for loan officers.

Here are four ideas that will help you break the logjam, get back on top of your process and take your performance to a new level. 

1. Identify Weaknesses & Bottlenecks

The first thing you need is a clear understanding of your loan process, from start to finish. Where is it working well and where are the problems? Which parts of your back-office process are slowing the rest down? Once you know that, then you can start the process of changing and building in efficiency.

Processing large amounts of data is one of the core functions of a loan originator. Time and again, we see that the ways in which data is ingested, handled and stored makes all the difference when it comes to speed and agility. The back office ‘stare-and-compare’ approach is often tedious, riddled with errors and requires a lot of back and forth communication between the borrower and loan processor. AI Foundry’s solution is to use software robots to perform a preliminary review of data and documents, in order to verify in seconds that the information submitted by the borrower across all the application forms is accurate.

Discovering and rectifying errors early in the application process is a sure-fire way of saving time and money in the long run.

2. Don’t Be Afraid to Shake Up Your Process

It’s one thing to identify weak points. It’s quite another to do something about them.

Companies that thrive are the ones that are unafraid to make change in an orderly, measured way. By building in a robust application process that incorporates sophisticated AI, you are minimizing most of the borrower follow-up, reporting and tedious customer service that is a drag on your loan origination system.

How can software help? Let’s take the application process as an example. Using AI Foundry’s Agile Mortgage solution, the platform automatically files loan documents as they are uploaded.  During this time, the cognitive robots review the application for completeness while also performing a general eligibility audit on the initial application submission.

Utilizing these cognitive robots helps lenders:

  • Improve customer satisfaction
  • Retain control over the application process
  • Gain universal visibility into the status of loan applications

Find out more about Agile Mortgages right here.

3.  Set Ambitious Targets That Showcase Your New Processes

Show your employees that you are confident in the new process by setting bold, yet achievable, targets. Once they get a sense of the speed, accuracy and efficiency that is expected of them, they should be able to rise to the challenge. In the process of automating many of the repetitive, low-value tasks that accompany a mortgage origination process,  loan officers can simultaneously accelerate certain aspects of the origination process to close loan more quickly, better scale their capacity based on demand, and also reassign their more experienced staff to improve quality of service that borrowers receive.

4. Take Your Staff on the Journey with You

It’s natural that certain members of your staff could feel threatened by this new technology.

Part of your job as a leader is to make them comfortable with the technology and reassure them about its role, and theirs, in your organization. Make them feel part of the innovation. Reward them for using the technology and listen to their feedback on what’s working and what’s not, and how to make it better. Great things can happen when the people who really understand the system also understand the tools that are available to fix it.

What this technology can do is break down barriers between departments and foster a better sense of collaboration.

Agile Mortgages Solution with Cognitive Robots blurs the boundaries between front and back-office operations and can improve loan processing times by up to 50%.

Get your loan officers invested in the technology, show them that it works and encourage them to use it. A recent story in stated that ‘sharing key company metrics, benchmarks and goals allow loan officers and entire teams to link their own performance with that of the company, to personally invest in and own their role in helping the company reach the desired outcomes.’

Productivity is the easiest and the fastest way to drive profitability in an organization, and the technology has reached a point where it is powerful enough, and user-friendly enough, to make a real difference to a company’s process. AI Foundry guarantees a 2-hour turnaround utilizing any cognitive robot and a 4-hour turnaround to complete a correspondent loan package. All with 99% accuracy out-of-the-box.

Get in touch with AI Foundry today and discover what our technology can do for your loan officers’ productivity right now.