Automation Technology is Critical to the Mortgage Approval Process
The mortgage approval process is complex and time-consuming. Slim profit margins, aggressive competition, risk-based decision making, and tight timelines challenge the mortgage industry today. As a result, mortgage lenders run the risk of reduced pipelines and decreased production with files that require in-depth level analysis.
This is especially true of applications containing self-employed borrowers, which add additional layers of complexity to the underwriting process. In large part, this is due to the copious amounts additional income-related documentation required to verify the borrower’s income. For example, additional documents may include:
1) Bank Statement’s
2) Tax Schedules
3) Profit and Loss Statements
And all indications suggest that the number of applications containing non-traditional (self-employed) forms of income will continue to increase. To learn more about the self-employed landscape, read out the latest white paper, “Bull Market of Self-Employment.”
To that end, it is critical to install automation technology in your mortgage approval process. LoanBeam’s self-employed income calculation software solves this gap by seamlessly integrating into certain applications within a mortgage lending environment.
Implementing LoanBeam in the Mortgage Process:
In today’s competitive lending market, automation of the lending process by leveraging OCR technologies streamlines your document management intake. Integrating automation in your underwriting process, in the long run, frees up resources to work on more pressing, mission-critical tasks.
Other reasons to automate include:
1) Using OCR technology. LoanBeam, for example, extracts self-employed income data to further calculate into a streamlined output. This results in a reduction of turnaround time required to process a loan. Introduction of time-saving measures increases customer satisfaction on loan files that would take weeks to process.
2) By automating the process, manual calculations are shielded by human error. Errors on the income section of loan files (including self-employed income), can be expensive for both parties if a lender is looking to obtain rep and warrant relief.
3) Reduction in overhead costs – automation of mortgage processing greatly eliminates the operational costs associated with mortgage processing, up to and including paper, printing, and labor.
For the most part, looking thru mortgage files can be cumbersome and daunting. However, automation is changing the direction of how mortgage lenders process their loans. As a result, lenders looking to increase efficiency in their internal process will benefit from software that reduces processing times and increases customer satisfaction.