All you need to know about the importance of RPA in mortgage loans
April 11, 2022
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5 min
LENDING
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Processing mortgage loans requires tons of paperwork, followed by a lengthy waiting period for document verification, resulting in a tiresome customer experience. Automation, specifically RPA (robotic process automation), helps you perform these routine tasks more efficiently so underwriters spend more time doing what’s essential. With RPA, enterprises can reduce heavy expenses, fight against fraud and improve customer experience.

In this article,

So, let's jump right into it:-

How to use RPA in mortgage lending?

Mortgage lenders have to scan through a number of documents to check the borrower’s ability to repay the loan. The volumes of data and documents scanned for verification can be quite overwhelming which is where RPA steps in. Application interaction, data extraction, and reporting are merely automated tasks with RPA. 

Let’s have a look at how RPA eases complicated tasks.

  • RPA application integration helps you to deal with the time-consuming activities in mortgage application processing. From downloading the documents to uploading that documentation, RPA will help you to manage everything effectively. 
  • The technology is also useful at pulling information from different documents and pushing it to a structured database. 
  • RPA bots can also be used to send information to borrowers. With the advanced tool, you don't have to deal with every borrower individually. RPA makes sending encrypted files to the borrowers quite easy. 

RPA is, undoubtedly, one of the best ways to improve your mortgage lending process. It doesn’t just save time but also ensures task completion in real-time. It’s a great way to eliminate the cost of document classification that might come with manual processing. 

RPA use-cases in mortgage lending 

RPA is widely used in plenty of industries including the mortgage lending industry. It allows your employees to focus on the customers as well as on the methods that improve the bottom line of the company. 

Some of the best use cases in the mortgage industry include:

  • RPA in mortgage assists you in improving the process of loan origination and processing. This is the main reason why more and more mortgage lending industries are using modern and advanced bots.
  • RPA is effectively used in reporting and improving turnover time. The rule-based algorithms of the RPA will ensure that you get the accurate data to grow your business. 
  • The robot allows quality audit of documentation that ensures that you can automate the receptive task as well as improve the manual tasks. Moreover, it helps the lenders to determine the risk exposure and use effective measures to mitigate it. 

Benefits of RPA mortgage lending 

RPA is extremely useful at improving and systematizing mortgage loan processing in the mortgage industry. If you're still unsure about why you need to opt for digital transformation with the help of RPA, here are a few benefits of using it:-

1. Boost productivity

The mortgage loan process is often lengthy, daunting, and overwhelming. This is where RPA sounds like the perfect solution. It assists you in reducing the time that you spend on the loan approval. This, in turn, reduces unnecessary costs and results in enhanced efficiency. In short, having RPA software will help you to offer a high number of loans in less time. 

2. No errors

The error rate for manual data entry can be as high as 30%, whereas automated data entry using RPA bots are 99%+ accurate. RPA processes data with utmost accuracy with little human intervention required.

3. Simple auditing process

RPA can automate the auditing process of loan documents and other related processes. With the assistance of RPA bots, you can minimize the risks. Plus, you can handle the whole auditing process efficiently, ensuring that you get the most out of your investment. 

4. Improved customer satisfaction

Apart from keeping your in-house team free of tedious tasks, RPA helps you to improve customer satisfaction. When you don't have to deal with time-consuming tasks on your own, you can focus on your customers. 

5. Easy risk mitigation

RPA offers you a chance to identify the risks associated with the industry on your own. By using the software, you can verify the data being processed. This, in turn, will help you to get a high level of compliance. 

Final words 

RPA improves the mortgage loan processing workflow end-to-end ensuring that you remain ahead of the competition. The exclusive time-saving features of the digital robot are quite easy to use and help you to offer accurate reports, as well.

Written by
Pankaj Tripathi
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All you need to know about the importance of RPA in mortgage loans
RPA
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April 6, 2022
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5 min
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