The mortgage lending process can feel incredibly fragmented. There are varying roles within the lending process itself, communication with borrowers and realtors and a wide range of adopted technology used by each of these parties. Somehow, bouncing among these technologies at varying stages of maturity, all the data and documents have to make it to closing. And to add to the chaos, things need to get faster.
Enter: artificial intelligence (AI). By harnessing the speed and adaptability of computers to create operational efficiencies, your team can focus on what borrowers want: More human interaction with their lender.
Improve Operational Efficiencies
At its core, AI incorporates computer algorithms to perform tasks usually completed by people much more quickly and efficiently. You may have also heard of machine learning, a subset of AI. Machine learning is the ability for AI to not only automate tasks but to continually refine processes in a system based on new incoming data. This means things like underwriting can not only become more efficient, but also more predictive of your particular business. AI can be used for document recognition, data scraping and task routing to complete manual tasks in real-time. Of the 27 percent of lenders in a 2018 survey who said they were already using AI, 42 percent said improving operational efficiencies was their primary objective with these tools.
Predictive AI tools can help detect fraud early in the underwriting process, saving valuable time and dollars. They can also perform risk assessments to determine the probability of a borrower defaulting on a loan. Lenders can take proactive steps earlier in the process to mitigate these risks.
Enhance the Consumer and Borrower Experience
As data flows through a stream of multiple interfaces and programs, maintaining integrity and semantic clarity is crucial for borrowers and lenders. At a minimum, different programs need to understand each other. At best, they will synergize for a seamless user experience, on pace with the expansion of smart devices and the Internet of Things (IoT).
Consumer-facing AI tools such as those integrated in the application process and borrower portals can help create a personalized user experience. This means more specific, useful data for your team. Responsive, intelligent application questions can dig into specific areas of interest for borrowers, allowing your team members to know them better from the beginning. This helps improve the lending process as a whole and creates a positive experience for customers who may be more likely to return somewhere they feel seen and heard.
Predictive algorithms can also help with more accurate property valuation by assessing location and demographic data.
It’s no wonder 58 percent of lenders said they expected to adopt some AI solutions within the next two years.
While technology integration can be a challenge when implementing AI tools, cloud systems and open API are making interoperability easier than ever for the mortgage industry. This allows not only an open door to smart tools but additional widgets and services farther down the line as business and needs grow and adapt.
Learn more about how Lodasoft’s smart enterprise workflow solutions can give you complete control of your ideal process.