Mortgage Automation - A strategic priority

 Mortgage Automation should be a well-known term if you work in the Mortgage Industry, and especially if you deal with Loan Origination Systems. One of the first workflow engines for Mortgage Automation was granted a patent in 2002. Since then Fintech Startups have taken on the challenge and made digital loan origination systems a common industry practice. Some global banks have gone as far as to condense the loan origination process to just 3 minutes for application and 1-second approval with superior workflow management. So if you are not on the mortgage automation train yet, this blog will tell you why you need to make it a strategic priority for lending. We have discussed the concept previously in our blogs.

Why Mortgage Automation?

Consumer experience and behavior are the most important factors in decision-making for any business. This is also true for the mortgage industry. Surveys and statistics suggest that consumers prefer lenders who provide ease of application, error-free processes, and faster loan processing.

Speed, customer service and getting things right first time are critical 'battle zones' to differentiate and win in mortgage

Top Drivers of Consumer Preference

Figure 1: Top Drivers of Consumer Preference


Mortgage Automation allows lenders to provide all these opportunities by enhancing the loan origination process. The benefits of digitizing the loan process include faster application, fewer errors, and an improved underwriting process that ultimately translates to higher consumer satisfaction. Lenders can see as much as a 3 times increase in loan origination volume by automating up to 85% of standard loan tasks, as per studies.

inflooens is a reliable and efficient mortgage automation platform that incorporates all these functions in an easy-to-use setup.

Fintech Startups and Legacy Systems

Many lenders are running processes on systems that are decades old. The apprehension of making the shift with mortgage automation is understandable. But these systems are expensive to maintain and not flexible. They also do not offer benefits like quick processing and fast release of new features or products. Fintech startups are transforming the mortgage lifecycle, especially the loan origination process, with new and innovative solutions.

Legacy systems are making it difficult for traditional lenders to compete with digital mortgages. This is also shown by the fact that the digital lending platform market has shown steady growth to become worth $3.5 billion in 2018 and an expected CAGR of 20.7% from 2019-2026.

US Digital Lending Platform Market Size


Figure 2: US Digital Lending Platform Market Size

One step at a time

Despite all the benefits of Mortgage Automation, it may seem overwhelming for some lenders to overhaul the entire mortgage lifecycle at once. Even though end-to-end digitization would be the best thing for a future-ready loan origination system, it is possible to gradually introduce digitization to mortgage processes. This allows the organization to adapt to new systems and make the most of this opportunity.

Let’s look at the areas where paced adoption can be introduced.

1. Loan applications

This is possibly the first process that can be easily automated. Collecting customer information online through dedicated systems results in reduced errors or missing documents in applications, a lower requirement of operational staff for the application process, and providing a single source of information for lenders and loan officers.

2. Application processing

Mortgage Automation can help in faster sorting of applications using advanced scorecards. These are based on traditional knowledge of credit data and alternate sources like financial information submitted by the customer. This helps in identifying credit-worthy customers faster and more accurately.

3. Risk evaluation with Predictive Analytics

AI and ML have revolutionized the way we use data. With platforms like inflooens, it is possible to evaluate large volumes of data to make accurate predictions about loan applications. Predictive analytics can be displayed using intuitive dashboards that provide a 360-degree view of the entire loan process.

4. Underwriting

Automating the underwriting process saves valuable time for lenders and allows underwriters to give real-time decisions. Automation will also help in staying compliant and consistent while increasing productivity. More on this topic in our previous blog.

5. Loan Approvals

From loan decisions to disbursement, mortgage automation can make the task of lenders easier and faster. Straightforward and simpler cases can be handled by the mortgage platform while teams can focus on more complex applications. Also, status updates can be provided to loan officers and customers for transparent loan processes.

Mortgage Automation is the best strategy

By now it must be clear that lenders need mortgage automation to improve their processes and customer satisfaction. Depending on their adoption capacity, lenders may go for complete digitization or a gradual transition. Mortgage automation is the new normal for the mortgage industry and it should be an important part of a lender’s strategy. Fintech startups like inflooens have proven to be the right partners in briging the gap between legacy systems and mortgage automation

Location: United States

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