Benefits of Automation in Mortgage Lending

Amidst a host of challenges such as elevated interest rates, headline inflation, declining interest from mortgage customers, and more, lenders have resorted to adopting creative ways to keep their businesses afloat. For some mortgage business owners, this means extreme measures like exiting channels and shrinking portfolios. 

But did you know you don’t have to minimize opportunities to excel in business? With automation, you can cut down on unnecessary costs while increasing efficiency, accuracy, and customer satisfaction in a single shot. But that’s not all. Here’s why you should automate your mortgage lending processes:

1. Reduce Cycle Times

The process of disbursing a mortgage loan is constituted of a series of steps, ranging from application assessments and information verification to submitting the files to underwriters, and so forth. Before the loan is finally deposited and the homebuyer is given the keys to their new home, a lot of time and effort will have been used, since most of the processes are manual.

That’s where automation comes in. By using upgraded mortgage processing technology from a top-rated provider, you can shave off as much as 33% of the total time required to accept and process a loan application. Floify is the industry standard in mortgage automation software, and in addition to automating your processes, they will equip you with the power to customize and brand your processes for more personalized experiences.

2. Lower the Likelihood of Human Errors

Did you ever think that humans have an astonishing likelihood of causing as high as 10% errors throughout the various loan processing stages? That can be attributed to lower concentration spans, predisposition to exhaustion, and other human factors that are significantly hard to control.

While automation won’t get rid of your human employees completely, it will make their work easier and more precise. A process that would have taken hours to complete can be completed in minutes, thanks to faster processing times and consistency, which also contributes a lot to the reduction of errors.

3. Reduce Overall Costs of Processing Loans

One of the more immediate and most impactful benefits of mortgage processing is overall cost efficiency. Automation in mortgage processes has been linked to as much as a 50% reduction in labor costs and time savings that go up to 96%, keeping in mind that the more time you save, the higher the number of applications you can process.

Besides, mistakes have direct monetary costs and other types of costs that are indirectly related to financial losses. Being able to reduce the occurrence of these mistakes and being efficient in your processes can save you as much as $100,000 to $1 million in losses.

4. Enhance Customer Experience

Mortgage loan processes can be lengthy, arduous, and boring for customers. Though the average time varies from one firm to the other, it’s obvious that the businesses that use manual processes have lengthier and less user-friendly processes. In an age of ‘caveat venditor’, the last thing you want to do is load your customers with slow services and other problems surrounding that – they’ll switch loyalty, and fast!

By adopting an automated workflow made possible by automation software, you help customers enjoy the entire loan processing journey, with very few challenges arising along the way. Enhanced customer experiences bring return business and increase the chances of earning referrals.

5. Makes Auditing and Improving Easier

Automated mortgage technology can make it easier to audit your internal processes and improve your business where necessary. That’s because you will comply with regulations more effectively and have the necessary documentation within reach.

What’s more, the reports and analytics that come from your software will help you determine what’s working and what’s struggling. That way, you can make the necessary changes and optimize your processes to deliver success.

To Sum It All Up,

Automation in a mortgage business is paramount for lenders that want to stay ahead of the competition. By working with a reliable mortgage technology provider like Floify, you are setting yourself up for a favorable outcome and optimizing your business to handle challenges even in the future.

Take action today and reap the benefits continuously!