Instant service and faster turnarounds are the expectations from customers today. Mortgage Process Automation and cloud-based loan processing systems are proving to be assets in the mortgage industry. Outdated legacy systems are slow in loan processing, and paper-dependent systems are prone to errors. Our previous blogs have talked about Mortgage Blockchain and Mortgage Process Automation transforming the mortgage industry. Here, we will explore how investing in mortgage automation, cloud-based systems will benefit your lending business.
FinTech Startups disrupting the Mortgage Industry
During the COVID-19 pandemic, many financial institutions shifted their businesses to online services to keep in touch with their customers. FinTech startupss are using mortgage blockchain to make loan applications faster and more affordable. There is transparency in the lending process. Some FinTech startups are providing Mortgage blockchain-based end-to-end solutions. It involves quick and secure data retrieval and validation from third-party providers, including government agencies. Mortgage blockchain technology is allowing the entire mortgage underwriting to be digital. FinTech startups have to meet customers’ expectations of speed, personalization, and transparency in the mortgage processes.
Image 1: Statistics in FinTech space in 2020 Image source: https://atos.net/wp-content/uploads/2018/07/ATOS_LOOK-OUT_BANKING.pdf
Mortgage Blockchain and FinTech
According to experts, the global FinTech blockchain market may grow to $9.2 billion in 2025 from $1.23 billion in 2020. There is an upward trend in using technology like Artificial Intelligence (AI) and Machine learning (ML), Blockchain, and RPA in financial services. According to expert opinion, these technologies will reduce the operational costs by 22% by 2030. Blockchain technology is helping in combating any advance cyber attacks in financial services. Mortgage Blockchain is countering the challenges faced in the mortgage industry by creating infallible transaction records.
Adoption of a cloud-based Loan processing system
A cloud-based Mortgage Loan Origination system enhances the entire loan origination process. Mortgage companies require cloud-based technology for the incorporation of encryption and security features in the Mortgage LOS platforms. Customers can access cloud-based LOS from any device such as a smartphone, tablet, etc. Cloud-based LOS has several benefits such, as
- Management of documents related to the mortgage process to be stored and secured in a centralized system
- Customer data and records are authenticated and verified by systems
- Improvement of customer experience by reducing paperwork and overall processing time, thus reducing the high processing fee
- Quick implementation of the cloud-based Loan processing system as there is no need to download software
- Ensures reliability to the user as the data is stored on a centralized server and made available at any time
- Easy accessibility of data as it is stored on a cloud server and is available on any device at any time
- Automation of all processes gives ample time to the lenders and borrowers for exploring other loan products
Image 2: Benefits of cloud-based mortgage LOS
Cloud technology allows flexibility to manage applications on the best-suited infrastructure. Legacy systems do not work in the cloud. By adopting cloud-based Loan processing systems, mortgage companies and financial institutions can cut operational costs. The mortgage companies can save the expenses required for hosting data on-site and on their servers. The mortgage lenders can transition to cloud servers with the right resources and technical expertise and reap the benefits. inflooens has the best mortgage LOS that meets the requirements of mortgage lenders. It provides the best customer experience and satisfaction and quick closing of loans.
Effects of Mortgage Process Automation on Mortgage Lending
Mortgage Process Automation tools contribute to a faster processing time of mortgage loans. Mortgage lenders are designing smart workflows to separate tasks between bots and humans. It is helping mortgage lenders utilize the highly valued human resources for tasks requiring human intelligence and judgment. Digital transformation of mortgage loan processing is vital for mortgage lenders in 2021. AI tools like voice assistants and chatbots have assisted mortgage lenders in weathering the COVID-19 pandemic. Mortgage Process Automation is at the forefront of meeting the needs of customers and loan officers. The advantages of using RPA bots enables organizations to tackle mundane, repetitive, and rule-based processes. Examples of these processes include verification of pre-funded data, services such as title, credit, etc. Robotic Process Automation (RPA) and AI provide audit trails and reduce compliance risks. Mortgage process automation has several benefits for banks by transitioning to online-based electronic forms and speeding up customer’s loan application processes. Mortgage Process Automation is managing various mundane but crucial tasks of FinTech firms. Mortgage lenders can improve the efficiency of their mortgage processes by ensuring data accuracy and facilitating regulatory compliance.
Image 3: Advantages of Mortgage Process Automation in Mortgage Lending business
With Mortgage Process Automation, Loan Origination Process is not as time-consuming as before. Documents such as appraisal reports, Title reports are verified, validated, and uploaded in a mortgage LOS. Mortgage loans are closed quickly and efficiently by stacking and indexing all the electronic documents. Each mortgage lending business needs to have to best Loan Origination System, which inflooens provides to its customers.
Mortgage lending businesses require mortgage automation and cloud-based systems to improve the effectiveness of services. They are transforming the mortgage lifecycle with shorter and quicker implementation. Mortgage Process Automation allows seamless, personalized loan processing. Cloud-based LOS decreases operational costs and increases process efficiency. Cloud-based Lending Systems are customized according to the lender’s needs by Inflooens.