Mortgage Automation is not as simple as other businesses. The mortgage process is complex and often varies from one lender to the other. Today, customers expect digitalization of all services including the entire mortgage process. It is not possible to have complete Mortgage Process Automation without back-office optimization through digitization. In this blog, we will explain how mortgage process automation is transforming Mortgage back-office processes.
Automating the Mortgage Back Office
Having an efficient back office is essential for any business. Back office tasks do not require direct interaction with customers and can be performed efficiently offsite. Mortgage loan approval in traditional back offices usually involves paper-intensive and manual processes. In the absence of automation, there could be manual errors or misplaced documents. Based on the research done by Capgemini Consulting, 60% of customer dissatisfaction sources originate in the back office.
Some of the traditional back-office tasks include:
- Data Storage
- Recruitment of staff
- Customer communications
- Risk management; and more.
Automation of back-office services will reduce cost, improve customer experience, and comply with data regulation. Employees of companies will focus on value-added services as they will be free from mundane, repetitive tasks. Automation tools such as robotics, artificial intelligence(AI) are helping to improve the quality of work.
A typical mortgage lending process takes 7-8 weeks of processing time. Mortgage process automation is transforming the mortgage lifecycle by reducing the processing time to few days. By automating some of the manual processes, mortgage lenders can improve customer experience.
Mortgage Process Automation transforming Mortgage back office
Mortgage process automation is addressing mortgage back-office needs by improving data integrity and accessibility. Using Mortgage CRM that easily integrates with LOS is improving the mortgage lending process. Implementing mortgage process automation and data analytics with advanced back-office systems is a part of the Mortgage CRM. Robotic Process Automation (RPA) and Artificial Intelligence (AI) are transforming mortgage back-office services.
Robotic Process Automation
Robots (bots) address all the back-office operations of the mortgage industry. Bots seamlessly and accurately connect to third-party applications and reduce redundant tasks. Mortgage process automation allows scalability of operations and enhances customer experience. Robotic Process Automation takes care of Data entry, task assignment, Information gathering, and automated email notifications. Data storage and management are an integral part of mortgage back-office processes. It helps in communicating with underwriters, appraisers, lenders, and customers for optimizing the mortgage lending process.
Image 1: Benefits of RPA in mortgage back-office services
Mortgage process Automation can ensure compliance with all the necessary federal regulations. It helps in auto-validating mortgage records and hence reducing loan processing time.
Artificial Intelligence and Back-office efficiency
Operational efficiency and borrower experience in the mortgage industry is improving due to artificial intelligence. Artificial Intelligence (AI) can process documents and data, read and compile data from various sources. AI-based document processing handles document types, both structured and unstructured data. AI systems operate to provide responses to customer queries and improve lending operations from origination to servicing. AI is transforming back-office processes by streamlining data and helping to close loans faster. AI processes help in improving other stages in the mortgage lifecycle like underwriting and compliance workflows. Read more on this in our earlier blog.
Image 2: AI-improving back-office processes
Document management is one of the bottlenecks in mortgage loan processing. AI-powered systems that help remove bottlenecks in loan processing will provide an error-free and quality lending process to mortgage lenders.
How is Mortgage CRM transforming Mortgage back-end processes?
Mortgage back-end processes involve standardizing practices, maximizing teamwork, eliminate risks and compliance errors. Having a state-of-the-art Mortgage CRM reduces operational costs, improves resource allocation, and brings transparency to the systems. A robust mortgage CRM platform provides access to the necessary data to the parties involved in the lending process. Friendly and effective communications with the borrower improve the business-customer relationships. Mortgage CRM platforms help in managing processes related to customer relationships. It helps in giving accurate documentation of customers for faster closing of loans. We have explored the different nuances of an effective Mortgage CRM in our earlier blogs.
Mortgage lenders can automate marketing and stay in contact with their customers using a customized CRM platform. inflooens provides the best Mortgage CRM in the market that gives information at your fingertips.
Mortgage back-end services must work flawlessly in tune with the front office services. Toward this purpose, Mortgage Process Automation plays a significant role in transforming mortgage back-end services. It helps in bridging the gaps in the back-office processes of lending organizations. A customized Mortgage CRM that skillfully works with clients and understands business needs is vital for mortgage lenders. inflooens has the best-in-class services that cater to transforming your Mortgage back-end processes.