The need to meet the demands of tech-savvy customers is crucial for the Mortgage Industry. Innovation in Financial services is the only way forward. Mortgage Process Automation is bringing about innovation in the mortgage industry in a big way. Automation in the Mortgage Industry is increasing the productivity of Mortgage Loan officers. We have discussed how Mortgage Process Automation is disrupting the Mortgage Industry in our previous blog. Here, we will discuss how Mortgage Process Automation and the technology involved helps in increasing revenue.
Need for automation now more than ever
The COVID-19 pandemic has accelerated the adoption of digitalization in many mortgage firms. The topmost Loan Origination challenge faced by mortgage lenders was the health and safety of staff. According to Fannie Mae's survey report of Q2 2020, the impact of COVID-19 on the usage of digital applications by consumers is increasing. The use of electronic verification by lenders has increased to 58%.
Figure 1: Increased use of digital applications Image Source https://www.fanniemae.com/media/34111/display
Increasing revenue with Mortgage Process Automation
Mortgage lenders, both large and mid-sized, are looking at ways to increase their revenue by using technologies like RPA, AI, Blockchain, etc. Incorporating these technologies with Mortgage LOS will help lenders streamline their lending process, reduce operating costs, and improve productivity. Mortgage automation in the areas of underwriting, auditing, and compliance has more growth potential. The use of touchless automation is solving the problems related to manual documentation in mortgage loan processing.
Figure 2: mortgage-automation-stages Image Source https://www.housingwire.com/articles/untying-business-growth-from-the-housing-market-cycle/
Use of automation in Mortgage LOS for Positive ROI
Robotic Process Automation (RPA)
RPA uses “bots” or computer software to capture information such as processing a transaction, manipulating data, and triggering responses. These bots can interact with different IT systems at the GUI level and identify repeatable work processes. At present, the Return on Investment (ROI) of using RPA is close to 300%. According to research, the RPA market is expecting to grow by double digits through 2024. 50% of the lenders got a positive ROI for their efforts, and 80% of the lenders invested under USD 100,000 as per Stratmor Group’s Technology Insights Survey, 2019.
ROI on using RPA in the Mortgage Industry Image Source https://www.stratmorgroup.com/insights_article/i-robotics-robotic-process-automation-rpa-in-the-mortgage-industry/
The benefits of RPA in the Mortgage Industry are
- No programming skills are required
- No disruption to underlying legacy systems
- Saving time and money
- Improve paperless processes
- Keep a check on mortgage fraud
- Better Regulatory compliance
- Improve customer experience
Automate Workflow is overtaking the manually-intensive workflows. The role of AI helps to automate simple and repetitive manual processes. Artificial Intelligence helps mortgage loan officers close more loans and increase profit without working additional hours. The benefits of AI in the mortgage industry include
- Evaluating creditworthiness
- Reduce operating costs and cycle times
- Improve decision making
- Personalized customer experience
Blockchain and mortgage process automation is transforming the Mortgage Lifecycle. Distributed ledger technologies such as blockchain are bringing increased benefits for businesses. The ROI by using blockchain technology in the mortgage industry is unprecedented. According to ABI Research, blockchain technology will generate more than $10.6 million in revenue by 2023. More on blockchain for Mortgage LOS has been discussed in our previous blog.
Advantages of Blockchain technology in the mortgage industry Image Source https://www.stratmorgroup.com/insights_article/i-robotics-robotic-process-automation-rpa-in-the-mortgage-industry/
These technologies will be profitable for the Mortgage Industry. Mortgage lenders can slash costs by adopting these technologies in their mortgage businesses. The use of virtual assistants or “chatbots” is slowly becoming a common feature in most FinTech company websites. Inflooens is accelerating the loan process with an easy-to-use client portal that gives information at your fingertips.
Integrating Mortgage CRM with Mortgage LOS to increase revenue
Automated Mortgage CRM with integrated Mortgage LOS is transforming the Mortgage Lifecycle. We have earlier discussed selecting the best Mortgage CRM for growth in the mortgage business. The factors that are influencing the increase in revenue by choosing the best Mortgage CRM are
- Saving time on repetitive administrative work
- Building personalized customer relationships
- Real-time alerts and automated follow-up with customers
- Ease of calculating payment data in real-time and accurately
- Automation of the onboarding process having features such as e-signatures, status updates, etc.
- Seamlessly, calculating the credit scores of prospective customers.
Moreover, by syncing Mortgage LOS with Mortgage CRM, the entire loan process is streamlined, from pre-qualification to closing. The best Mortgage CRM has advanced security policies and end-to-end encryption features that are beneficial to mortgage lenders. Inflooens’ has the best Mortgage CRM with outcome-focused automation as one of its features.
Many Financial institutions are using cloud-based software application systems. Mortgage CRM is one such application of these software services. Mortgage Process Automation is providing a higher ROI to the mortgage industry and also giving tremendous customer satisfaction. Mortgage process automation is enabling organizations to make better decisions. Investing in the right Mortgage CRM is necessary for Mortgage companies to stay ahead out of competitors. Inflooens provides the best Mortgage CRM that enhances borrower-lender communication with complete satisfaction.