We are now heading towards 2022, after a rocky voyage through the pandemic with high hopes for brighter days ahead. The Mortgage Servicing Industry proved to be a silver lining in the midst of the global crisis. Mortgage lenders of all sizes achieved record-breaking refinance volumes because of historically low rates. This frequently leaves those of us in the mortgage sector wondering what the coming year holds for us all.
Mortgage Servicing Companies more than other segment in the mortgage servicing industries, continue to rely on ancient business processes. Such as complex legacy systems and fragmented databases, which often lead to information silos. High reliance on human labor for manual operations like data entry raises expenses, leads to costly human errors, and takes time away from staff who could be better utilized in improving the customer experience.
Mortgage Servicing Industry Challenges
Modern mortgage servicing companies are facing greater hurdles than ever before, as it is becoming increasingly difficult to run it efficiently and profitably in the face of escalating operational costs and regulatory changes.
Mortgage service providers face issues such as rising competition and regulatory expenses in addition to inefficiencies in their procedures due to dependencies on the legacy systems.
Customers demand outstanding customer service as well as near-real-time application judgments. Mortgage lending fees have been reduced, creating a pressing need for lenders to decrease loan processing expenses.
This is also the time when in most organizations, including Mortgage origination and loan servicing, employees are working from home due to which, their productivity has got affected, improving employee efficiencies is a top priority as the workforce represents 40% off all costs associated with loan servicing.
Role of Automation solutions in streamlining the Business processes
Fortunately, mortgage process automation can solve all the above-mentioned problems. Moreover, improved mortgage servicing processes leveraging automation can also reduce operational costs for organizations.
Tech-savvy organizations have been able to streamline their processes. Smart technologies have ensured that their employees working remotely with no disruption in services to clients, thus enhancing the customer experience and reducing operational costs, maintaining compliance, and reducing the risk of losing a client.
Service providers who have adapted to the automation solutions leveraging Artificial Intelligence (AI), Machine Learning (ML), Chatbots, etc. are able to manage current pandemic-related situations with minimized disruption to their operations. They are in a better position than those depending on the traditional operation & legacy processes.
The global mortgage servicing industry has been altered by the latest AI and ML-based systems, as well as cloud technology, bringing breakthroughs and major improvements to bring about end-to-end enhanced Experience, Efficiency, and Predictability.
From origination to acquisition to post-close and servicing choices, AI and ML are being leveraged. AI has benefited real estate professionals in a variety of ways. AI has been used to supplement communication between buyer and seller, resulting in a speedier response to the client without raising the cost.
Automation’s powered by AI has helped lenders address particular loan processing issues and boost productivity by up to 20%. Such technologies are proving to be major forces in the loan processing industry, helping to enhance loan processing speed, quality, compliance, and cost.
Many of us are familiar with consumer-facing chatbots.. RPA bots are incredibly useful and efficient tools that organizations use to simplify time-consuming and repetitive processes.
Mortgage companies are increasingly turning to machine learning to leverage predictability to help them become more efficient, profitable, and capable of providing a better customer experience, thus providing an end-to-end seamless services experience. It aids service providers in identifying documents and determining data accuracy, allowing them to service customer requests more efficiently.
For mortgage servicing companies cost minimization is a top goal. Service providers that use new technology for efficient business processes, automation, and AI/ML model-based solutions, are enjoying significant cost savings. A process that previously took hours of human interpretation is now streamlined and completed in seconds, with better accuracy. These organizations reutilize these saved human resource bandwidths for growth and better customer experience.