Mortgage Process Automation – A Mortgage Audits Perspective

By inflooens on October 21, 2020

mortgage process automation a mortgage audits perspective


In the Mortgage industry, technology is playing a vital role in enhancing the way lenders and borrowers are interacting with each other. The tedious and vital tasks for Mortgage Audits have also been revolutionized by the use of technology. Digitization is transforming the mortgage CRM industry, as explained in our previous blog, Digitization of the mortgage industry.

inflooens’ smart Mortgage CRM is transforming the customer experience and lenders’ capabilities in the mortgage market. Mortgage process automation and the role of technology in mortgage audits are explained in this blog.

Audits in the Mortgage Industry

An audit is a formal process for checking whether the organization is following a compliance management system (CMS) in line with federal regulations designed to protect consumers from unfair lending practices. Mortgage file audits serve as quality control measures for internal purposes. These mortgage audits are an external validation for companies that report to regulatory agencies including federal agencies such as the Consumer Financial Protection Bureau (CFPB),Fair Housing Act (FHA).

Some of the major laws onMortgage, implemented by regulations of federal agencies are:

  • Dodd-Frank Act-to prevent unfair, deceptive, or abusive acts or practices (UDAAP) in the mortgage industry, concerning mortgage originators interaction with consumers
  • The Real Estate Settlement Procedures Act (RESPA), Regulation X- require lenders or mortgage brokers, for mortgage origination, to provide borrowers with disclosures regarding the nature and costs ofthe real estate settlement process.
  • The Truth in Lending Act (TILA), Regulation Z-requiresdisclosures related to credit transactions.
  • The Equal Credit Opportunity Act (ECOA), Regulation B-prohibit creditors from discriminating against any applicant concerning any aspect of a credit transaction
  • The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act), Regulation G-require registration and licensing of residential mortgage loan originators
  • The Home Mortgage Disclosure Act (HMDA), Regulation C-require mortgage lenders to report certain information about loan applications, originations of loans, home improvement loans, and refinancing loans for each calendar year to the federal regulators
  • The Gramm-Leach-Bliley Act (GLB), Regulation P- requires covered entities to provide privacy notices and limit information sharing in a particular way
  • The Fair Credit Reporting Act (FCRA), Regulation V-require mortgage lenders to disclose information from a consumer reporting agency to determine a consumer’s creditworthiness
  • Mortgage Acts and Practices – Advertising Rule (MAP Rule), Regulation N-requires non-depository mortgage lenders prohibitmisrepresentation in any commercial communication concerning terms of mortgage loan products.

Compliance, From Loan Origination System to Post-close

Mortgage lenders in the mortgage industry have to comply with these federal mortgage regulations. These regulations start at the point of origination of a mortgage loan, cover each stage of the mortgage lending and servicing processes, and closing.

Usually, mortgage companies employ the services of third-party experts to perform internal audits of the lending practices and operations. It is an added cost to doing business as it sometimes requires additional staff to be trained in managing compliance rules for audits to be carried out smoothly.

Transforming the Mortgage Lifecycle and the Audit Process

Technology plays a vital role in minimizing the added costs of auditing for the Mortgage Industry.The application of Artificial Intelligence (AI) and Machine Language (ML) algorithms are essential tools for Mortgage Process Automation. It gives real-time reports, eliminates manual processes by 40%, and streamlines the quality control processes.Machine learning is helping lenders classify documents and assess data accuracy, so they can process loans faster.

digital mortgage journey

Figure 1 - Digital Mortgage Journey Image source -

By adopting AI and machine learning tools, the underwriting process is streamlined and eliminate any penalties during audits. These technological tools are used by mortgage lenders in compliance monitoring. It helps in mapping of risks and Regulatory Examination and Findings management. Using mortgage audit software, a person can automatically uncover any violations of the mortgage loan through mortgage process automation.

Here are the types of Mortgage Audits.

types of mortgage audits

Figure 2 - Types of Mortgage Audits

inflooens’ Mortgage CRM with its convenient and superior quality control audits provides mortgage process automation support from Loan Origination Systems to Post-closing.


Having information at your fingertips makes life easier in the mortgage industry, and certainly for Mortgage Audits. This can only be done with the efficient use of technology and mortgage process automation. Artificial Intelligence (AI) and Machine Language (ML) applications in the mortgage industry are helping streamline operations during auditing. The use of AI in audits garners benefits to users like faster data analysis, reducing audit time, better compliance, increasing productivity, and efficiency in the Mortgage Industry. inflooens is the Best Mortgage CRM and Loan Origination System that helps in convenient and superior Mortgage Auditing Processes.

inflooens is the world’s first “Loan Team Optimization Platform”. This next-generation, cloud-based, integrated mortgage platform aims to transform the entire Mortgage Process and enhance the customer experience. Learn more about the platform on

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