Drive efficiencies in Lending and Mortgage with Intelligent Automation

by Navin Gupta, on Feb 22, 2023 8:33:23 PM

Estimated reading time: 4 mins

Key takeaways from the blog

  • Intelligent Automation generates a 360-degree holistic view of the Loan Mortgage cases.
  • It eliminates fraud and improves processing time across the loan origination, delivery, to recovery cycle.
  • The RPA-AI-Workflow combination is a game changer in the Mortgage and Lending value chain. 

Drive efficiencies in Lending and Mortgage with Intelligent Automation

Mortgage and Lending is a challenging business area in the Banking and Financial Services industry. The paper-driven labor-intensive space has a longer turnaround time due to a tedious evaluation process of borrower creditworthiness, regulatory compliances, and underwriting. The challenges aggravate when the mortgagee is not able to complete an in-person evaluation due to myriad reasons. Intelligent Automation enables Banking and Financial Services institutions to overcome these challenges and compete with born-in-the-cloud Fintechs while achieving a quick return on investment within a few months. 

How does Intelligent Automation enable Mortgage and Lending?

Intelligent Automation improves document- and process-intensive scenarios through the holistic use of Intelligent Document Processing, Robotic Process Automation, Artificial Intelligence/Machine Learning (AI/ML), Workflows, and Analytics. The ensemble extracts data from paperwork, validates it, and integrates it with the core processing systems. The AI/ML component works across all stages of verification and validation and unified data management of the mammoth data processing involved in each loan mortgage case. 

Intelligent Automation imparts high visibility to the data and improves transparency. The ensemble automates the complex machinery and enables quick decision-making in the Mortgage and Lending space through the strategic use of visualizations to highlight focus areas and outliers. Intelligent Automation is a game-changer in the complex and demanding Mortgage and Lending value chain. It enables integration of the existing IT investments to build an agile Loan Origination and Delivery system.

Mortgage & Lending – Benefits of Intelligent Automation

Intelligent Automation automates the entire Mortgage and Lending space and improves the scale, productivity, and efficiency of the process. The fulfillment of regulatory compliances before and after the loan delivery makes the area very challenging. Intelligent Automation enables Banks & Financial Services to audit the space and generate reports for faster statutory compliance. 

  1. Due diligence: Intelligent Automation analyzes each loan request and the mortgage collateral in a holistic manner. It improves the speed to decide go/no-go for a case. It also enables digital evaluation through video calls where the loan requester/mortgagee may not be able to fulfill in-person evaluation.
  2. Analysis of debt-to-income ratio: The technology analyzes the capability of the requestor to repay the debt by scrutinizing the mortgage collateral papers and financial capability papers and weed out the overextension of the debt fulfillment capability of the requestor. 
  3. Underwriting: It is the most complex aspect of Lending. Intelligent Automation extracts the details of the mortgage and the mortgagee and converts them into structured data that can be easily analyzed. By institutionalizing loan processing automation with AI/ML models and business rules, the ensemble augments human capability for faster underwriting. 
  4. Monitor mortgage limit: The federal mortgage rules related to limits for different categories of borrowers change from time to time. They take into account the credit ranking of the borrower. Many state and federal regulations directly influence the mortgage limit. Intelligent Automation enables lenders to efficiently monitor the process so that the mortgage that gets sanctioned is within the threshold and fulfills all the regulatory parameters.
  5. Speedy Loan Origination: The Intelligent Automation platform can launch an independent Loan Origination System (LOS). It can also power an existing LOS by integrating different siloes to ensure a faster turnaround time from Loan Origination to Loan Delivery. 
  6. High accuracy and straight-through processing: The digital platform improves the data extraction from paper-back documents, the extraction accuracy, and the integration with different systems. It eliminates manual error and reprocessing to improve straight-through processing that results in reduced cycle time. 
  7. Productivity: The Intelligent Automation ensemble improves the productivity and efficiency of the Loan Mortgage department. It transforms the Banking and Financial Services arena into a digital platform enabling Lending operations to Do More with Less.
  8. Scale: The AI/ML models atop the Cloud Native environment self-learn speedily over and above the initial model training. The ensemble allows to scale up operations and take on increasing workload even amidst a changing regulatory compliance landscape.  
  9. Revenue loss elimination: Intelligent Automation platform offers high data visibility across the borrower’s Credit Rating history in the public domain and the nuances related to the collaterals pledged for the mortgage. It also eliminates revenue-leakage scenarios leading to non-performing assets. 
  10. Efficiencies of scale: Intelligent Automation reduces operational costs across the business and its ecosystem. It eliminates rework related to manual processing while delivering operational efficiencies. It improves productivity and drives efficiencies. 
  11. Regulatory compliance: Intelligent Automation supports dynamic compliance with stringent regulatory rules to avoid penalties. It eliminates the scope of Fraud, such as the same mortgage collateral extended for different loans from different BFS institutions.
  12. Faster reporting: It supports faster internal and federal/state reporting amidst a volatile economic scenario. It supports process tracking across each node and offers an auditable platform for loan origination, delivery, to recovery.

Simply put 

Intelligent Automation improves productivity and efficiency across the Mortgage and Lending value chain. It improves the unified data management that involves mammoth data processing. It offers high transparency and visibility about a case along with the 360-degree details of the mortgage collateral and the financial ability to repay debt. As a result, it expedites quick decision-making across the complex Mortgage and Lending value chain. It enables Banking and Financial Services companies to transform and perform. 

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Topics:Banking, Financial Services, and Insurance (BFSI)DigitalIntelligent Automation

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