The following post is part of a series of blogs written by MeridianLink Partners who will be attending the MeridianLink LIVE! User Forum in May 2022. To learn more about the event, click here.
By: Mortgage Automation
In recent years, mortgage lenders have repeatedly had to learn the name of the game in mortgage loan processes: Automation. Perhaps the term has become so overused that it implies automation has become easy or even applicable to every facet of the loan process. The problem is that most of the time, automation as it’s being defined isn’t really automation at all. For example, just because you have a process that automates your property validation, doesn’t mean it is adding to your overall business strategy and goals.
True mortgage automation requires delivering on three major initiatives:
- Automation must save you money.
- Automation must make your loans higher quality.
- Automation must enable you to close loans faster.
Let’s break each of these down further:
1. Automation saves you money
One of the main tenants of automation is that you can leverage technology to achieve the same tasks currently being done manually, but at a substantial savings. It’s estimated that the minimum average savings that automation can achieve is 25-30% less than what you are paying today.
2. Automation makes your loans higher quality
Working with automation, you can take repetitive tasks and be assured that accuracy and quality control is applied to every loan. That means less touches by underwriters, less problems with the investor, and smoother loan fundings. Automation allows you to audit each loan, and since a robot is executing your workflow, you can expect to have 99% accuracy on your loans.
3. Automation enables you to close loans faster
Because automation triggers itself, there is no more waiting on the loan process. Automation can run all your services, pull information for the property from third-party services, enter it into your loan origination software (LOS), and execute tasks that your back office normally does. With automation, there is no waiting on tasks because it works 24 hours a day, 365 days a year.
Robotic Process Automation (RPA) doesn’t have to be intimidating or anything to fear. With RPA technology, you can now take any task that used to be time and manpower intensive and assign your new virtual workforce. Tasks that used to require entire departments, can now be automated and virtualized requiring no human intervention. This frees up your staff to focus more of their efforts on delivering a quality, modernized borrower experience while also allowing for a better overall work-life balance.
For more information, visit http://mortgage-automation.com.