Posted by MeridianLink | August 30, 2022

What Can Automation Do for You in the Mortgage Lending Process? A Few More Key Benefits

In recent years, mortgage lenders have repeatedly had to learn the name of the game in mortgage loan processes: robotic process automation (RPA). Perhaps the term has become so oversaturated that it implies automation is 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. 

As shared in our previous blog, there are several benefits to the use of RPA in the mortgage lending process. In this post, we’ll highlight these three key factors to consider:

  1. Automation enables you to close loans faster.
  2. Automation helps detect fraud.
  3. Automation improves regulatory compliance.

1. Automation enables you to close loans faster

Because automation triggers itself, there is no more waiting on the loan process. RPA can run all of your services, pull information for the property from third-party services, enter it into your loan origination software (LOS), and execute tasks usually performed by your back office.

Closing times vary, but can take up to 60 days, according to The Mortgage Reports. With automation running 24 hours a day, 365 days a year, there’s no waiting on humans to execute tasks. And since the process is entirely predictable, it enhances the chances for a smooth and timely closing.

2. Automation helps detect fraud

Mortgage fraud is on the rise. In 2021, the risk of fraud was up 37% from 2020 levels and approximately 0.83% of all mortgage applications (about 1 in 120) contained fraud. In the first three quarters of 2021, every dollar mortgage lenders lost to fraud cost them $4.40, up 33% since 2019 when mortgage lenders lost $3.30 per dollar to fraud, and up 23.6% from 2020 when they lost $3.56 per dollar.

Consequently, mortgage lenders must do all they can to reduce the risks of fraud-related financial losses. Fortunately, automation, i.e., mortgage fraud detection systems, can help you prevent mortgage fraud, in part, by accessing and verifying borrower data, employer data, property data, and more. In addition, robotic process automation (RPA) bots can follow up on transactions that appear suspicious to rule out false positives.

3. Automation improves regulatory compliance

Mortgage lenders are required to comply with complex government regulations. Automation can help lenders improve regulatory compliance and minimize operational risks by utilizing automated file management and standardized templates for communication. Automation also eliminates the need to email sensitive customer documents, ensuring client information is safe and the business complies with all security regulations.

Automation at Your Service

Robotic process automation doesn’t have to be intimidating. With RPA technology, you can now assign your new virtual workforce to any task that used to be time-consuming and labor-intensive. Tasks that once required entire departments to complete, 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 providing a better overall work-life balance.

If you enjoyed this, be sure to read our correlating blog on the topic covering other key benefits.

You may also like:

Watch to learn more about Robotic Process Automation (RPA) and how one lender is benefitting from this integration within the MeridianLink Mortgage LOS.

Read our blog post on the topic “4 Mortgage Processes You Can (and Should) Automate Today”.

OR check out our eBook, “Automating Mortgage Services With a Point-of-Sale Platform”

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