Continued low-interest rates likely mean that 2020 will have the largest refinance volume in eight years, as per the latest forecast from Fannie Mae.
For the fourth week in a row, the Mortgage Bankers Association also reported an increase in purchase application activity, although it is still 10% lower than it was a year ago.
The spike in volumes is changing the way all of us are working and pushing several lenders to accelerate their digital transformation. Efficiency that technology-based solutions can drive can be the key competitive advantage for the lenders.
The other challenge, lenders are having to deal with, is the unavailability of skills and people to manage these volumes. With most people working remotely, or not working at all, this is further pushing the case for a faster digital transformation.
Reasons why Lenders should adopt Technology and Automation
One of the most important reasons to adopt technology and automation is to achieve agility and scalability. With AI-Driven solutions, the ability to scale-up when you have high volumes in the mortgage process becomes much easier.
With Technology-based solutions, Lenders can create a smooth, hassle-free, and seamless loan application process. Repetitive and labor intensive tasks can be automated to free-up the resources. Processing a large number of documents with automation requires only a fraction of time and the output is of consistent quality, saving a lot of unnecessary follow-ups in the process.
Improved Efficiency and Profitability in the Mortgage Process
With AI-Based tech solution, lenders will observe a reduction in the operating cost along with improved efficiency and profitability. Automation in document processing will reduce paper-work and will reduce human-errors leading to predictable and accurate results. This frees up employees to focus on customer-facing activities, boosting the effort in the high-value work that requires human intellect. It is estimated that the adoption of a technology-based solution will also lead to a reduction of overall loan origination costs by 25-40%.
Increased Transparency and Visibility
Currently, each mortgage transaction involves multiple stakeholders making the process inherently opaque and prone to data inaccuracies. With technology-based automation, the process becomes much more transparent and lenders have clear visibility into the entire process.
This is the time for lenders to act and adopt Automation/Technology solutions powered by AI/ML. It will be the driver of growth and competitive advantage for the lenders amid uncertain times.
Visionet’s VLR is a loan document processing solution that leverages AI/ML and accelerates loan processing while saving costs and time. For best results, partner with Visionet. Contact us today on firstname.lastname@example.org
Visionet is a leading digital technology solutions provider for the BFSI and Residential Mortgage industry. We are passionate to deliver exceptional business outcomes to our clients leveraging deep industry expertise and proprietary mortgage technology products. We post our views on mortgage technology and industry updates through this blog.