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In the ever-changing world of mortgages, how do you increase efficiency, reduce costs, keep up with the changing rules and regulations and drive more sales?
The answer is simple, you focus on mortgage process improvement.
You may ask, how can I improve my business processes without hiring and training additional staff?
Your friend Millie owns a cosmetics manufacturing business; her facility can produce 50,000 units of makeup every day. The business is at breakeven point, so she plans to increase production capacity. Here’s the catch—the value-chain is operating at optimum capacity in terms of both manpower and machinery. For this reason, Millie contacts a business process consultant to look for a solution. The consultant suggests automating repetitive tasks: loading raw materials in machinery, mixing ingredients and extracting the finished product. It helps shift the staff’s focus to more critical activities like marketing, research and development; production increases by 20% and Millie starts to make profits.
Hopefully, you have your answer—better process can help optimize operations and improve customer experience.
Ready to scale your business and reach new heights? Here are four powerful ways to improve mortgage processing.
Tips To Improve Mortgage Process
#1. Automating Prequalification
Prequalification is the first step in mortgage loan process. It involves a lot of paperwork and documentation which makes the task time consuming. Automating prequalification can help you save time.
Here’s what you can do. Build an effective marketing strategy to invite your clients for a prequalification round. It will not only introduce potential applicants into your sales pipeline, but also shield them from hard inquiries from your competitors. Once you onboard applicants, help them become aware of the various steps involved in the lending process and offer support with the application (if they are interested). This is where you showcase your knowledge and expertise to gain their trust.
As you focus on strengthening your relationship with clients, automate the documentation process by shifting document and information submission, online. Now that you and your team don’t need to spend time verifying each application for loan eligibility, you end up saving both time and money.
#2. Index Stacking
It can be challenging to simultaneously manage multiple loan applications and portfolios. This is where index stacking comes in. It is the process of organizing specific loan documents and categorizing them for storage For example, you can categorize income proofs due for verification by deadlines and stack them together. However, just like processing documents for prequalification, manual stacking can also be a time-consuming process. Automate the process to reduce turnaround times and increase accuracy as well as efficiency. Technologies like machine learning (ML) can improve data processing, management and facilitate faster onboarding.
#3. Cloud-Based Loan Origination Systems
You can also use a loan origination system (LOS) to improve operations.
What’s an LOS, you ask?
It’s a software that facilitates end-to-end mortgage processing right from origination until closing—it can execute a range of functions right from loan origination and eligibility checks to providing loan estimates.
An LOS is powered by artificial intelligence which helps reduce turnaround times, speed up document processing, identify and mitigate risks, provide uninterrupted data access and simplify team collaboration. In addition, it can also help you identify suspicious applications and deliver superior customer experience.
#4. Consistent Communication and Updates to Applicants
The mortgage loan process involves an enormous amount of paperwork—often a cause of inevitable delays. Delays can understandably make your clients anxious but there’s nothing worse than leaving your clients in limbo about the application process.
That’s why it’s important that you communicate the loan processing timeline upfront and update your client about its progress regularly. Explain all steps in the loan application process and tasks you need to undertake to complete each of those steps. It will help you retain potentially big accounts and not lose business.
Program your LOS to send weekly progress alerts to clients and arrange a direct communication platform where applicants can directly ask questions.
Conclusion
We hope that these mortgage processing tips will help significantly improve operations. Remember, the trick is to strike a perfect balance between the use of human intelligence and automation.
You may also consider outsourcing your operations to improve processing capability, enhance quality and productivity and improve turnaround times to help scale your business.
At Aritas Mortgage Solutions, we have been simplifying mortgage processing for our clients for over 15 years. We help you effectively identify bottlenecks and streamline operations.
Transform your mortgage process, optimize operations and drive more sales. Get in touch today.
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