Processing mortgage applications entails dealing with a massive pile of documents necessary to verify customers loan worthiness and clear approvals. This task is often carried out manually, resulting in reporting errors, missing documents, and an unending waiting period before closure. Furthermore, indexing, document sorting, and data extraction are other recurrent issues mortgage lenders face. This has consequences such as the loss of time, wasted employee efforts, and, eventually, a drop in the lender’s credibility to process a fast mortgage in time.
Although technologies such as Optical Character Recognition (OCRs), have been used by mortgage lenders to speed up the process to some extent, these still do not meet industry standards to assess complex documents required for mortgage approvals. These can be pretty strenuous for the lender unless the entire process is optimized for speed and accuracy. It is also tiresome for the customers, as the clarity over the time required for final approval reduces and may result in a decline in customer experience.
An intelligent mortgage document automation system can effectively solve this issue for you. It
can improve process efficiency and offer faster approvals with more accuracy. The solution,
Intelligent Document Processing, or IDP, carries out end-to-end mortgage document processing
and creates more impact during loan processing. In fact, automation results in improving employee productivity from 59% to 80%, which enhances customer satisfaction and experience.
Automation of document processing in the mortgage industry allows you to optimize the entire
value chain. It can
- Reduce operating costs
- Improve turn-around-time
- Offer higher accuracy
- Provide enhanced solutions faster
- Increase the degree of customer experience, driving retention and brand advocacy
These are clear and tangible operational benefits that improve customer satisfaction and can be
measured by metrics such as improvement in net promoter scores (NPS) and ROI due to increased efficiency and service quality.
A typical IDP based mortgage workflow process-
How do IDP solutions deliver value in the mortgage industry?
Leveraging IDP solutions in the mortgage industry allows you to utilize several tech-based capabilities that are key to improving efficiency and accuracy. The most effective technologies behind the IDP solutions are:
Computer Vision for image cleanup – When customers submit a copy of their documents, they may contain images that are often photographed or photocopied using an external device, making data retrieval difficult. IDP uses computer vision technology to ensure clarity in such documents by making them as clean and noise-free as possible. It helps improve data extraction by implementing accurate image preprocessing. It also offers preset options based on the type of documents, which lets you extract the right data and record it safely.
OCRs – Although OCRs have been in use for some time in the mortgage industry, the latest capabilities allow the IDP engines to enhance the impact by deploying multiple OCRs for data extraction. These are based on machine learning algorithms, which switch to the best-suited one based on the confidence and accuracy of the module. This maximizes your IDP coverage and accuracy in the documents processed.
Artificial Intelligence – The inclusion of AI in IDP solutions has been a game changer in improving the speed and accuracy of mortgage document processing. It effectively helps identify patterns, gather insights, troubleshoot anomalies, and does a lot more as it learns different aspects of its applications. AI imitates human behavior but offers unmatched processing power to gather intelligence and provide better solutions in document processing.
Machine Learning – Machine learning is one of the primary features of AI and the reason for AI being so efficient. It is a “self-learning” mechanism that identifies repetitive tasks and learns from patterns that evolved during the processes. Consequently, it improves the document and data extraction process quality by emulating tasks more efficiently. It also identifies any data gaps and raises an alert that allows lenders to improve accuracy. Machine Learning further utilizes another capability called NLP or Natural Language Processing to identify the ‘language’ of the documents, irrespective of the source, and finds its relevance to the process. Naturally, it helps index, analyze, and document the data in the ‘right order’ for accurate validation of mortgage approvals.
Maximizing your ROI in IDP depends on the following: –
Despite the technological advancement in Intelligent Document Processing solutions, ROI optimization depends on certain factors. The primary among these are:
- Implementation – The IDP solution you chose needs fine-tuning according to your needs and offerings in the mortgage industry, where the process and scope are defined optimally. Having generic processes might reduce the functionality or impact of IDPs. However, if you integrate the solution as per the specification of the lenders, it can offer faster implementation quality consistently according to specific use cases.
- Process Integration – IDP solutions should map processes, and processes should be tweaked to match the IDP. It’s a two-way street. You should identify specific business rules and set up the workflow engines in the IDP, based on the processes, to improve the ROI of an IDP solution.
- Adoption and Adaptation – IDP solutions are machine-based enhancements that improve operational and process efficiencies. However, you can leverage the process accuracy and generate maximum impact only with optimal organizational adoption. Further, you should identify subprocesses and implement the solution according to the required capabilities to improve the ROI significantly.
Before finalizing an IDP solution as per your requirements, you should ensure that it conforms to the above three factors. Automating your mortgage processing can ensure a faster turnaround time without compromising on accuracy and speed.
If you want to know how IDP solutions can improve efficiency of your mortgage processing and simplify lending workflows, get in touch with us here, or email us at (DocVu.AI@visionet.com).