How can mortgage automation improve your lending business?

What is mortgage automation?

Mortgage automation is the process in which intelligent technology is used to reduce manual workflows, improve productivity and decrease risk in every aspect of the mortgage loan lifecycle.

Mortgage automation: Why it’s a big deal

From online tools and quick closings, to immediate responses and personalized support, today’s borrowers want it all. By leveraging mortgage automation, you can streamline your processes, fully optimize your most valuable assets – your team, and ultimately deliver the high tech, high touch experience borrowers expect. For more on why automation is becoming a critical tool for lenders, hear from Amy Cross, Director of Product Management at ICE Mortgage Technology, in the conversation, What’s driving lenders to make the change to automation?.

The key components of mortgage automation software

Mortgage automation is made up of multiple components and, depending on your unique mortgage process and team resources, you may choose to employ some or all of them, including:

• Rule-based systems: These systems consist of configurations or predefined directives that trigger specific actions without human intervention, based on the data received.
• Machine learning: This technology leverages computer software to learn and mimic the logic and problem-solving capabilities of the human mind.
• Robotic process automation (RPA): This solution is best for managing repetitive steps in the mortgage lending process. RPA trains software “bots” to perform repeatable, rules-based digital tasks.
• Application programming interface (API): Working as a software intermediary, APIs allow two pieces of software or platforms to “talk” to each other, and exchange information seamlessly.
• Marketing automation: This technology triggers targeted, personalized marketing communications to be automatically deployed when specific criteria are met.

Why mortgage workflow automation matters both to lenders and borrowers

When used appropriately, mortgage automation helps take over the manual tasks that slow your team down, freeing them up to focus on building relationships and delivering a great customer experience. Mortgage automation makes capital available by reducing the number of days a loan may occupy valuable warehouse capacity. The faster you can close and deliver a loan to an investor, the more you can increase warehouse capacity. Our blog, The race for mortgage automation offers a closer look at the benefits automation can provide for your business.

The greatest benefit of automation technology is the impact it has on the borrower experience. Simply put, automation allows lenders to deliver what borrowers want. According to data from the 2023 ICE Borrower Insights Survey, one in four borrowers said they want an equal blend of traditional methods and digital tools during their next mortgage experience. With mortgage automation, you’re able to deliver a fast, high-tech experience and give your team time to provide the human touch that is essential during the homebuying process. Additionally, through automated communications, your borrowers are updated on the status of their loan at each milestone and are never left wondering what comes next.

Important considerations when implementing mortgage automation software solutions

Now you know all about mortgage automation, but where do you begin? There’s a lot to consider as you map out your journey to adopt automation technology. The first step is to outline your overall business goals to ensure you’re leveraging a solution that’s right for your lending needs. For example, as some of your highest paid resources, many organizations are looking to maximize how their underwriters spend their time. By leveraging the right automation solution, you can ensure that they are not wasting time on manual or clerical tasks. This empowers your team to close more loans faster without added work or resources.

Whether you’re looking to increase volume, create better efficiencies or optimization, improve loan quality, deliver a better customer experience or all of the above, you will need to tailor your mortgage automation strategy to align with your goal(s). Learn more about the steps you need to take when beginning your automation journey in our Determining what to automate blog.