How to make mortgage lending process more efficient with AI & ML

In today’s evolving mortgage ecosystem, advanced technology is a must-have to successfully process huge volumes of loan applications. On average, the time taken to close loans is 47 days, according to Ellie Mae Origination Insight Report Data. However, consumers expect much quicker turnaround times.

Automation technologies like Artificial Intelligence (AI) and Machine Learning (ML) are known to effectively speed up the time-consuming tasks of gathering, reviewing, and verifying mortgage documents effectively. As a result, the process becomes faster and more accurate increasing the overall productivity and improving the customer experience.

According to a recently published report by a leading services vendor, AI could boost average profitability rates by 38% and lead to an economic benefit of $14 trillion by 2035. It is a widely agreed fact that AI and ML hold great promise across all industries, and, specifically, in finance.

There are three major areas where AI and ML are being leveraged by lenders to gain a competitive edge in the industry: cost, compliance, and customer experience.


To Optimize Efficiency and Costs

Currently, many lenders are still using archaic systems that rely on manual processes, in combination with some form of technology which is not only time-consuming but expensive as well. This is where technologies like AI and ML come in.

AI and ML can make a difference in two areas: costs and cycle times. Since they have the ability to read, comprehend, and draw conclusions based on context, AI and ML-based systems can perform operational functions more efficiently and at scale. The algorithms are capable of extracting data from images, pinpointing glitches, and taking decisions faster than humans.

They can also work on many labor-intensive, repetitive tasks performed by humans in mere seconds that could have taken hours otherwise. This helps saves the time and money that lenders would otherwise spend by having their employees read documents and retype what they see into their systems.

Also, AI and ML-powered technologies can help avoid last-minute delays by prompting lender’s staff to take early action when there is an issue, ensuring the process keeps moving. By using AI-powered technology, the staff can utilize the time saved to focus on other core business tasks and delivering a more positive consumer experience.


To Enhance Compliance

Compliance is a major reason for cost escalations and delays in the lending cycle. While the existing compliance systems that lenders use are able to identify and reduce errors by kicking non-compliant loans for further manual review, they however end up increasing the costs as well as turnaround time.

Automation helps provide data validation systemically verifying the compliance of the data before it ever hits a document. AI ensures easier compliance in a very complex regulatory environment.

AI and ML-based systems automatically check for compliance with federal and state requirements in real-time. They help reduce errors and thus ensure accurate processing. These systems combine domain expertise with borrower data, business rules, and predictive analytics to identify errors and flag compliance violations. They also offer advice on corrective actions to be taken with respect to procedures and workflows – to help plug in the gaps. Through the process, they ensure compliance while checking that there is no compromise on speed or efficiency.


To Boost Customer Experience

In the changing mortgage industry, competitive markets have led to the need for improved customer experience. Satisfied clients are important for lenders and they have to proactively react to emerging consumer demands.

To accomplish this, AI and ML-based platforms can go a long way in helping lenders identify consumer needs, design new strategies, and deploy purpose-oriented best practices. AI-based tools like chatbots and virtual assistants are proficient at effectively guiding customers through the lending process and delivering customized experiences. Through the use of these technologies, there are also lesser fewer iterations in processing since there are fewer errors. This means the process is faster leading to more satisfied customers.

AI and ML platforms can also help lenders stay ahead of the competition in terms of approval volumes, service response, fraud detection, and predictive personal interactions.



As the mortgage market becomes more tech-oriented, it is time that lenders move faster towards solid digital experiences to stand strong. To thrive in this evolving landscape, lenders must put customers at the core of their operations, and transform their lending process using AI and ML. But it is also very important to choose the right partner who can offer effective technology that helps enhance customer experience and ultimately move ahead of the competition.

Companies like Visionet adopt an all-encompassing technology-based approach that promises maximum profitability to clients, helping them metamorphose their operations while scaling effectively.

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