The mortgage origination process has always heavily relied on paper, and a typical mortgage origination package is usually over 500 pages long. Copying, faxing, scanning, printing, and manual keying of data is something that happens at nearly every point and there are many time-consuming steps involved, including correcting human errors, repeating mundane tasks, etc. But how do you resolve these issues or stop them from happening?
With the recent years of further technology and capabilities in the mortgage industry, we’ve learned that there are many ways to improve these processes since the paper age and stay relevant in the digital world.
Here are 5 ways to improve your mortgage origination process:
1. Go Paperless
Use technology to receive the deal electronically (via broker software integrations) and get the credit bureau. Data can also be entered manually if needed. In many cases, it can be set up to auto-populate. After the term sheet is issued, investor information is provided; lawyer instructions are available; compliance documents are available as well.
All of the information can already be stored in a software service, like Mortgage Automator. For instance, an application comes in via a broker software integration, and all of the info is already there and gets auto-populated in Mortgage Automator. If the borrower needs to provide their documents, they can upload them via the borrower portal, and everything automatically ends up in Mortgage Automator as well. This way, you have everything in one place. Items can be sent out and signed electronically as well.
2. Use Automation
Automation seems to be the latest industry buzzword, but it could be the answer to a lot of your current struggles with mundane tasks and human error. For example, automation helps to eliminate tedious tasks such as importing loan applications, LTV calculations, creating payment schedules for investors, payment processing, document preparation, tracking funds, outstanding payments and per diems, and generating quarterly and annual statements. Automation also allows you to create workflow efficiencies and work on your business, not in your business.
3. Improve the Customer Experience
The process should be frictionless for your borrowers. Features such as auto-populating documents, having your borrowers use a proper borrower portal where they can request draws, payout statements, and extensions, and also having information for every loan they have out with you offer a streamlined and systematic digital experience. A borrower portal will also show all loans, give you the ability to upload outstanding conditions, request draws, extension agreements or payout statements, etc. Having custom lead intake forms created for your website is also helpful.
4. Improve Turnaround Times
The lending process is very time-sensitive. Speed and accuracy are everything. People can’t wait around for days when it’s a matter of a multi-million-dollar deal. The origination process should be quick and efficient in all aspects: data importing, document generation and storage, and more.
5. Ensure Data Accuracy
Origination involves lots of data entry. If you automate and bring manual data entry to a minimum, your data is more likely to be accurate. There is less risk of human error and mistakes being made.
Origination doesn’t have to be time-consuming and mundane. It’s all about using technology and automation to your advantage, and thinking about the customer’s experience. It should be smooth, seamless and ultimately make the process much easier for everyone involved!