Mortgage origination is a labor-intensive as well as time-consuming process. On average, it takes anywhere between 35 to 40 days to close a loan. The need of the hour in 2021 is a strong mortgage processing solution that can help tackle and manage origination costs.
Mortgage lenders target closing as many qualified mortgage loans as possible— and in the whole process ensuring that they remain compliant. Over the years, costs in originations have increased significantly. Lenders can work in a number of ways to tackle this origination cost while consistently seeking newer methods to streamline operational procedures and reduce the cost of conducting business.
Outsourcing To Scale Up While Reducing Costs
Outsourcing the process to a reliable partner company that can offer robust mortgage processing support is an effective way to tackle the cost of origination. In a market where talent is costly, lenders need to find solutions to save on resources so that the process can be cost-effective. The mortgage process does not remain the same all through the year. It faces several vagaries depending on geographies, market conditions, time period, and different types of loans.
Lenders may sometimes require acute manpower and sometimes the requirement may be extremely low. In times of comparatively lighter workloads, investing in permanent hired resources may prove to be expensive. It makes more business sense to partner with a mortgage processing service provider who can provide staff whenever required.
Leveraging Digital Capabilities To Reduce Costs and Compliance Risks
In today’s competitive mortgage landscape, lenders can benefit by embracing digital technologies such as Machine Learning (ML), Artificial Intelligence (AI), Robotic Process Automation (RPA), Chatbots, etc to gain an edge. AI-powered RPA can help lenders solve specific processing problems and increase productivity by as much as 20%. These technologies are proving to be driving forces helping improve on loan processing time, quality, compliance, and tackling origination costs.
Tech-enabled solutions can be used for mortgage document processing right from the process of loan boarding. Through the application of rule-based algorithms, these tech solutions can ensure that the data is accurate, can reduce turnaround time and lower origination costs. This can be achieved by automating repetitive and time-consuming manual tasks. It makes business sense to outsource to mortgage loan processing companies that have a strong digital footprint and who can help in improving loan processing time, quality, compliance, and cost with the right technology.
Utilizing AI/ML-enabled VLR Solution
Lenders have to deal with a host of mortgage document processing filled with paper documents like loan applications, forms, legal letters, etc. on an everyday basis. These need to be processed and managed accurately and on time. The right kind of mortgage document processing solution is an essential requirement. Data from all these documents need to be made available in the Loan Origination System. This is where companies like Visionet can offer stellar mortgage processing solutions to lenders to deal with origination costs.
Visionet’s VLR is an AI/ML-based document processing solution for the mortgage industry. This can help speed up loan processing by over 30% while delivering over 98% accuracy. It leverages over a decade of product refinement and industry operations with hundreds of long-standing customers. It uses the triple-pass methodology to strip and validate content using NLP, OCR, and multiple big data stacks. The system further trains itself using ML algorithms to provide progressively accurate results.
Availing Pay-As-You-Go Models
VLR can start delivering ROI from day one and has no upfront capital cost involved. The flexible “pay as you go” pricing model eliminates the need for dedicated internal infrastructure and converts the servicer’s cost model from fixed price and capital-intensive to variable price and capital efficient. This means lenders have an excellent mortgage document processing solution that allows them to only pay based on what they use instead of going for permanent costs.
Lenders can benefit a lot in tying up with the right kind of mortgage processing solutions partner. They can tackle the rising cost of origination and also close faster. Companies like Visionet offer a complete range of digitally enabled services that drive global digital transformation. The company provides implementation services for total client success. The scalable, high-ROI solutions continue to deliver superior performance for continued success.