How mortgage automation streamlines mortgage underwriting

The process of mortgage underwriting is complex and demands time and specialized efforts. And factors such as low-profit margins, high operating costs, aggressive competition, high risks, and the tight timelines add to the pressure on the lenders. However, as other industries embrace modern technologies to tackle their daily operational challenges, the mortgage industry is also showing its intent. In particular, many lending firms are harnessing the possibilities of mortgage automation to improve their efficiency and gain a competitive edge. With the right integration of automation with the underwriting process, the tedious and repetitive tasks are streamlined by technology and the resources are left with enough time to focus on the more pressing areas of the business.

Here’s how mortgage automation helps the mortgage underwriting process

Simplifies the process

If right and accurate information is fed into the system, automation allows the right approval of loan applications through a binding commitment. This significantly cuts down the time required to verify the information in the loan applications and the overall approval process also gets markedly shorter. With accurate information, the system generates the underwriting report within minutes, enabling the lender to offer a short time frame from the submission of the application to its approval.

Loan underwriting is a very critical mortgage process that calls for maximum lender attention. As it involves analysing all the information provided by an applicant, a flawed or biased report can cause things to go horribly wrong for the lender. So, it’s imperative for lenders and credit unions to outsource loan underwriting to underwriters or a loan underwriting company, that can ensure each loan meets the secondary marketing guidelines.

Expert Mortgage Assistance (EMA) banks on experience and advanced tools to deliver accurate, cost-effective and time-bound residential mortgage underwriting services to lenders and credit unions. As a part of the mortgage underwriting process, we analyze mortgage loans, evaluate applicant credit worthiness, assess applicant risk class, price the loan at par with market rates, and take care of all related activities as well.

Reduced dependency on resources

As the bulk of the processes are subjected to automation, it relaxes the dependency of the management on its human workforce, implying substantial savings on operating expenses. Technologies such as RPA and Cloud facilitate efficient handling of various underwriting processes with an impressively high accuracy rate. Also, since underwriting involves several repetitive tasks that are also time-consuming, it’san ideal candidate for automation. With enough time for the resources to focus on the closure process, they can close more applications in a short period.Automation also lets the stakeholders respond effectively to risks and adhere to industry regulations easily.

Consistent processes

Loosely-defined workflows are a big concern for mortgage lenders since they can cause confusion and errors, leading to longer closing times and business losses. But with the introduction of rule-based automation in mortgage underwriting, processes such as document collection and verification, case triaging, timely communication, assigning of tasks, and the like are efficiently streamlined. Value-adding functionalities such as alerts for anomalies and machine analysis of workflow data help in fine-tuning the various processes to meet the changing dynamics of the industry.

Scalability

The opportunity to scale up and down the business operations is perhaps one of the significant benefits that technology has delivered. As resource-intensive processes like document classification, data extraction, document and data management, and information analysis are automated, it gives the mortgage companies a readily scalable platform to grow their business both horizontally and vertically.

By smartly leveraging automation in the mortgage underwriting process, lenders not only make their lives easier but also extend conveniences to their business partners, customers, and applicants. However, while considering automation, they must have the objectives clear and choose the right value-chain processes to realize the desired outcomes and maximize the ROI.