Workflow Management with Mortgage Process Automation

By inflooens on February 13, 2021

workflow management with mortgage process automation


The mortgage lifecycle is a tedious process with many steps involved. Add to that compliance and regulatory issues, and you have got yourself a real task. Here is where Mortgage Process Automation comes to the rescue. With the help of tools like Mortgage LOS and Mortgage CRM, the mortgage industry is transforming the mortgage lifecycle and enhancing the lending and borrowing experience. We have talked about Mortgage Process Automation and Mortgage Transformation in our previous blog. Mortgage Automation relies on Workflow Management which deals with each task of the mortgage process. In this blog, we explore how workflow management is important.

use of mortgage process automation

Image 1: Use of Mortgage Process Automation Image Source:

Workflow Management in Mortgage Industry

The Loan origination process has several smaller workflows within it. This includes point of sale, acquisition, processing, underwriting, closing, funding, post-closing, and shipping. Each of these workflows is associated with a specific task and may also be linked to third-party services. Each of these workflows performs a specific task in the loan lifecycle and may also be linked to third-party services. Each person or party involved in the process has its own responsibilities. These tasks may or may not overlap. The need is to create workflows according to these requirements. This way it becomes easier to manage requirements and coordinate tasks. A very simplistic workflow diagram of loan origination process is given below.

simple workflow of loan origination system

Image 2 : Simple workflow of Loan Origination System Image Source:

Requirements of Workflow Management – Teams and Workflows

Since there are many stages of loan approval involving multiple workflows, there will be many different teams involved throughout the process. Let us look at the main teams in the loan origination process which should be considered for mortgage automation.

teams involved in loan origination

Image 3 : Teams involved in Loan Origination

Customer Relationship Team

This includes customer-facing employees like loan officers, call center personnel, and agents who serve as a bridge between the company and borrower. These teams navigate deals with the borrower and correspond with them to address any queries or issues that the customer may have.

Underwriting and Credit Team

Also called the risk team, because they evaluate the risk associated with the loan. Their functions include activities like checking the credit score of the borrower, underwriting, verification. After inputs from the credit team, the underwriting team decides on any particular loan application.

Legal Team

The loan transactions are subject to many legalities and compliance requirements. To fulfill these the legal team makes sure that all documentation is in order before the loan is granted.

Accounts Team

The mortgage industry is concerned with the handling of large amounts of money and transactions, day in and day out. Needless to say, the accounts team has a vital role in maintaining the cash flow and records of funds of a lending organization.

All tasks and functions of these teams have the potential for workflow management and mortgage automation to make for more efficient and reliable processes. For mortgage process automation, the workflows must be mapped out correctly to involve and connect the various teams and processes for optimum performance output.

Mortgage Process Automation in Workflow Management

Mortgage process automation relies heavily on artificial intelligence and machine learning. Once the algorithms for all workflows are created, they need to be trained and tested. This means that all possible scenarios for workflows are presented to the AI/ML systems for them to understand and learn the processes. Machine learning works in such a way that they can make logical decisions based on the previous data provided to them. For example, AI can be trained to reject applications below a particular credit score. So any application with a credit score of less than the specified value will be automatically rejected in the pre-approval process. Such mortgage process automation makes the task of human teams easier. We have discussed more about AI/ML and other technology trends in our previous blog.

Mortgage Automation for Exceptional Cases

With thousands of loan applications being processed each day, there are bound to be some cases that are a deviation from the normal. These cases are exceptional and may not be a usual occurrence. Nonetheless, they need to be accounted for and incorporated in the workflow management to avoid disruption of services and maintain a good customer relationship record. Sometimes these cases require manual intervention from teams like underwriting or legal teams. Lenders should try to include these cases in mortgage process automation as far as possible to reduce the chances of error and bias. Mortgage Automation also helps in reducing costs, avoiding redundancy, and increasing efficiency by enabling faster processing.

Here it will be useful to discuss some of the classic exceptional cases that occur in the mortgage industry.

Missing Documents

As many people are involved in the loan application process, there is a chance of documents being misplaced while being transferred from table to table. In a conventional process, the document collection needs to be done again causing delay and inconvenience to lenders and well as borrowers. With mortgage process automation, digital loan applications are possible. The document collection takes place online and negates the possibility of documents being misplaced. Also, any missing document from the borrower’s end can be procured through the online loan origination system without any hassles.

Loan Request Above Eligibility

The mortgage industry receives applications where the credit score of the borrower may be just slightly less than the requirement. In such cases, mortgage process automation may automatically reject the application without further consideration. With careful workflow management, these cases can be flagged by the mortgage automation systems and redirected to underwriting teams or credit teams for further evaluation. This can prevent the loss of potential customers who could be eligible borrowers but are only slightly shy of the requirements.

Manual Errors

Defects are common in manual processes. With mortgage process automation and workflow management computational errors can be avoided. This eliminates chances of data entry errors, missing documents, mathematical mistakes in underwriting, and incorrect categorization of loans. Mortgage automation saves time, energy, and costs for lenders further boosting bottom lines.


Workflow management is key for maintaining glitch-free services for the mortgage industry. Mortgage process automation makes the process reliable and efficient. Mortgage automation enables hassle-free processes for the lender and reduces workflow disturbance that in turn results in better customer satisfaction and better ROI. Companies like inflooens are successfully transforming the mortgage lifecycle by providing intuitive platforms that automate the mortgage process.

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