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Effective Ways to Reduce Loan Processing Time & Increase Efficiency
Aritas Mortgage Solutions
August 10, 2023
Contents
According to Ellie Mae, it takes roughly 47 days to close a mortgage loan in the US. High loan processing time and the paperwork involved can make the process frustrating for your clients. The demand for mortgage loans is expected to rise in the upcoming quarters of 2023. Leveraging the latest tools and loan origination systems can significantly expedite the entire process, reduce loan processing time by up to 40%, so you can focus on improving customer experience.
Here are five ways to implement an effective mortgage loan processing system and boost your customer Net Promoter Score (NPS).
#1. Automation
Mortgage automation can help lenders properly organize unstructured data, speed up income verification, assign tasks and reduce loan processing time.
Automation can be helpful at every stage—starting from loan processing to granting and eventually authorizing the final agreement. At the outset, the system ensures data accuracy and compatibility in accordance with the established rules. It also integrates with the lending engine for credit decisions.
#2. Artificial Intelligence (AI)
AI and Machine Learning (ML) can together transform loan operations by increasing loan origination, enabling you to keep a check on compliance and expediting online lending.
AI systems can increase mortgage loan processing efficiency by highlighting trends and offering insights to enhance workflows and reducing turnaround time. As a result, you can speed up the process of loan disbursement and improve customer experience.
#3. Data Integration
Mortgage loan processing systems offer integrated access to information such as applicant’s economic data to verify applicant information and assign credit rating. It allows you to maintain an efficient loan processing system and remain aligned with your customer’s goals.
#4. Digitization
Digitization can help reduce turnaround times for borrowers. It can also reduce loan processing time by allowing lenders to access customer data conveniently on mobile platforms. Digitization has allowed personal loans to be disbursed within 48 hours with complete documentation. Auto loan sanctioning has reduced the turnaround time from four days to six hours.
#5. Lending and Portfolio Analysis
A loan processing system can provide insights into the loan lifecycle. It can also help interpret the applicant’s portfolio performance. Using analytics lenders can examine complex loan processing steps, observe productivity trends and identify risks.
Portfolio analysis helps reduce costs as well as loan processing time while simultaneously accommodating market changes and regulations
Conclusion
Loan processing plays an important role in the success of mortgage loan providers but the process can often be tedious and error-prone.
Aritas Mortgage Solutions has extensive experience providing impactful mortgage processing solutions to mortgage brokers and professionals. Our range of services include pre- and post-closing audits, loan processing and documentation and indexing to name a few. We’re here to help simplify mortgage processing for you. If you’d like to maximize efficiency and minimize hassle, get in touch today.
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