The ever-evolving mortgage industry is currently grasping the rapid revolution to meet the digital demands of tech-savvy clients. Enhancing efficiency and minimizing the cost of operation while staying compliant is more of a need than being wishful. The digital transition has impacted the mortgage industry on a big scale. Over the past few years, technology has been at the frontline of orchestrating mortgage servicing industry. Lenders are embracing inventive technologies such as robotic process automation (RPA), artificial intelligence (AI) to gain a competitive edge.
On an average in the US, per-loan cost to originate a mortgage is close to $8000 and the entire process kills 45 days. The aforesaid statistics and the given process-aligned nature of this industry, the RPA has transpired as the technology mostly impacting the existing structure. Nevertheless, it has been a powerful drive to help lenders improvise their cost challenges, loan processing time, quality servicing alongside help them identify a faster time to achieve the desired ROI. Although comparatively new on the horizon, robotic process automation has already commenced to resiliently streamline the mortgage lending process.
What do we understand of RPA in the mortgage industry?
In this scope, RPA (robotic process automation) replicates the activity of a human user with AI software/bot for performing the same errands at a larger scale. The software implemented helps the company automatize mundane and repetitive task across the apps via existing user interfaces. RPA introduction incorporates front-end integration without changing the existing IT infrastructure.
This industry runs the most complicated processes, which are not only complex but also compliant stricken along with multiple systems; RPA is impressively productive in such scenarios. The AI software bots act as a support in bridging the gap generated by incoherent systems without extending integration needs or making a hole in the IT budget.
Well, consider a situation wherein a customer is requested to share a specific document to support documentation of their mortgage loan. In reply, the customer mails a snap of the document to the loan officer for further processing. Now, the loan officer needs to open an attachment, enter the details on all systems and finally inform the customer about the successful update. Now, visualize the entire procedure on repeat for hundreds of customers that too indefinite document category. With RPA, all such tasks can be settled by AI algorithms and any exceptions can be handled by the loan officers. Did you spot the low hanging fruit for implementing RPA? Yes, you do get to skip mundane and repetitive tasks.
All said and done, we know how mortgage lenders expectation work when it comes to demonstrating the risks allied with compliance while keeping up with the complex government statues. So here we can implement AI and RPA for risk and compliance oversights. Previous pilot projects resulted in minimization of risks from human errands and sought to risk mitigation and robust compliance reporting.
Who knew AI with RPA would change the game for under-writing, as we know AI can aid RPA to collect and process data connected to the applicant be it external or internal sources? So, this frees up 20% of an underwriters hours impacting faster TAT, that too perpetuating 100% accuracy. Besides, the implementation of any cognitive process automation to under-writing activities would allow the lenders to improve on how they could ascertain and underwrite their vulnerability to risk.
Advantage of implementing AI and RPA in the mortgage industry
The elevated standards of traditional processing in this industry are expensive and collide with compliance, revenue realization and customer loyalty. The financial institutions are looking at RPA as a prospective solution to the burning challenges they face with regulatory, financials and operations. The wider aspects where RPA demonstrated an impact on this industry are as follows:
Faster loan close: Delivering more loans in less time is an industry-wide thirst, if robotic process automation is implemented it can remarkably reduce the average time taken to process a loan impacting in cost reduction and increased efficiency.
Distinctive data accuracy: Human errands are error-prone, if automation is adopted then it allows to identify and eliminate errors automatically resulting in improved data accuracy.
Exceed customer expectation: Automation relieves minimum 20% manhour of an employee, hence the employee can focus on improvising customer experience and enhance the services levels.
Risk mitigation: Unverified data are costly mistakes, by implementing automation it improves the quality of verified data impacting on a better level of compliance and increased standards of risk mitigation.
This industry commenced scratching the surface of benefits of robotic process automation, nevertheless, the optimal value can be achieved by strategizing and investing in the robotic workforce for delivering enhanced servicing experience.
Automation carries a lot of clouts and would help the mortgage industry improvise the efficacy of services at a lower cost and faster turn around time in comparison to the current modus operandi.
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The ever-evolving mortgage industry is currently grasping the rapid revolution to meet the digital demands of tech-savvy clients. Enhancing efficiency and minimizing the cost of operation while staying compliant is more of a need than being wishful. The digital transition has impacted the mortgage industry on a big scale. Over the past few years, technology has been at the frontline of orchestrating mortgage servicing industry. Lenders are embracing inventive technologies such as robotic process automation (RPA), artificial intelligence (AI) to gain a competitive edge.
On an average in the US, per-loan cost to originate a mortgage is close to $8000 and the entire process kills 45 days. The aforesaid statistics and the given process-aligned nature of this industry, the RPA has transpired as the technology mostly impacting the existing structure. Nevertheless, it has been a powerful drive to help lenders improvise their cost challenges, loan processing time, quality servicing alongside help them identify a faster time to achieve the desired ROI. Although comparatively new on the horizon, robotic process automation has already commenced to resiliently streamline the mortgage lending process.
What do we understand of RPA in the mortgage industry?
In this scope, RPA (robotic process automation) replicates the activity of a human user with AI software/bot for performing the same errands at a larger scale. The software implemented helps the company automatize mundane and repetitive task across the apps via existing user interfaces. RPA introduction incorporates front-end integration without changing the existing IT infrastructure.
This industry runs the most complicated processes, which are not only complex but also compliant stricken along with multiple systems; RPA is impressively productive in such scenarios. The AI software bots act as a support in bridging the gap generated by incoherent systems without extending integration needs or making a hole in the IT budget.
Well, consider a situation wherein a customer is requested to share a specific document to support documentation of their mortgage loan. In reply, the customer mails a snap of the document to the loan officer for further processing. Now, the loan officer needs to open an attachment, enter the details on all systems and finally inform the customer about the successful update. Now, visualize the entire procedure on repeat for hundreds of customers that too indefinite document category. With RPA, all such tasks can be settled by AI algorithms and any exceptions can be handled by the loan officers. Did you spot the low hanging fruit for implementing RPA? Yes, you do get to skip mundane and repetitive tasks.
All said and done, we know how mortgage lenders expectation work when it comes to demonstrating the risks allied with compliance while keeping up with the complex government statues. So here we can implement AI and RPA for risk and compliance oversights. Previous pilot projects resulted in minimization of risks from human errands and sought to risk mitigation and robust compliance reporting.
Who knew AI with RPA would change the game for under-writing, as we know AI can aid RPA to collect and process data connected to the applicant be it external or internal sources? So, this frees up 20% of an underwriters hours impacting faster TAT, that too perpetuating 100% accuracy. Besides, the implementation of any cognitive process automation to under-writing activities would allow the lenders to improve on how they could ascertain and underwrite their vulnerability to risk.
Advantage of implementing AI and RPA in the mortgage industry
The elevated standards of traditional processing in this industry are expensive and collide with compliance, revenue realization and customer loyalty. The financial institutions are looking at RPA as a prospective solution to the burning challenges they face with regulatory, financials and operations. The wider aspects where RPA demonstrated an impact on this industry are as follows:
This industry commenced scratching the surface of benefits of robotic process automation, nevertheless, the optimal value can be achieved by strategizing and investing in the robotic workforce for delivering enhanced servicing experience.
Automation carries a lot of clouts and would help the mortgage industry improvise the efficacy of services at a lower cost and faster turn around time in comparison to the current modus operandi.