When we think about automating the mortgage process, it may seem similar to automating any other office. But the lending business is a different beast. In this post, we’re comparing typical office automation with mortgage tech automation. Discover not only the difference between the two but also elements of outstanding mortgage tech automation.
Mortgage Tech Automation vs. Basic Office Automation
Data Storage and Management
Basic office automation typically involves collecting data and storing it “virtually.” Yes, even data entry into a Google spreadsheet is considered office automation.
Here’s an insider secret that may shock you: most digital 1003‘s in the market use the same prehistoric spreadsheet premise –collecting data, storing it, and that’s it.
How well does that work for mortgage needs? It doesn’t!
Mortgage tech automation works differently. The best digital mortgage tools go beyond typical data collection and storage. Yes, it even goes beyond automated email notification and cloud-based retrieval.
What today’s mortgage office needs is the ability to collect data, store it securely, AND do so in a meaningful way (more on that later). You also need the ability to store MASSIVE amounts of data. In other words, data entry, document collection, and consolidating the information are just the beginning. Task assignment, data routing, email notifications, and processing –the requirement of data storage and management in a digital mortgage process are extreme.
Data entry, consolidating information, assigning tasks, and automated email notifications are just the beginning. There are also the variables of pulling data from multiple sites and systems, storing the data in a secure manner that preserves the data for rerouting to another network while causing zero disruptions to existing processes.
That’s vastly different than a standard office automation system and way beyond the capabilities of most office automation products.
But let’s circle back to accuracy because this is vital and the most crucial part about a digital mortgage. Connecting two rule-based systems is challenging enough. Now let’s add validation and compliance requirements –and the ability to simultaneously do it with multiple systems. Of course, this example is the simplified version. The requirements of a digital mortgage platform are extraordinarily complex and beyond the scope of this article (sign up for a free mortgage point-of-sale demo with CEO Rocky Foroutan, and he’ll touch a little more on it).
The complexity of making all of these platforms communicate accurately and securely has been one of the major hindrances of the advancement of a mortgage tech. And even today few companies get this right –and fewer still that offer a mortgage borrower experience that makes the lead generation capabilities skyrocket.
Here’s a quick overview of mortgage tech automation and how it improves accuracy:
- Reduced Human Errors – According to the Institute for Robotics Process Automation (IRPA) for every 100 steps in the digital mortgage process, humans will conduct 10 mistakes. It may not seem like too high of a number, but are you willing to risk 10 mistakes on your next loan?
- Reduces Possibility of Fraud – Along with increasing accuracy is reducing the incidence of fraud. One of the benefits of a digital mortgage platform is the ability to securely connect to One Certainty by Ellie Mae to verify sensitive info accurately and at digital speed.
- Improved Compliance -There is zero flexibility when it comes to compliance, how confident are you in the “traditional” way of processing a loan given the right rate of human error?
In short, mortgage tools help you to get more. Whether that means more loans, more income, or more freedom to choose how you will spend your extra time, mortgage tools help you to get MORE.
The right mortgage tools are the ones that seamlessly and accurately connect to third-party applications, reduce redundant tasks both for you and your consumer. The result is more time for you as well as less abandoned applications due to frustrated consumers.
Automated productivity in today’s terms also means mobility. Whether desktop, tablet, or smartphone, the best mortgage tools are those that are just useful and robust on the road as they are in the office –24/7.
Another thing to consider in automating the mortgage process enhancing in-office productivity is connecting your team. Collecting info, sending docs, verifying, clarifying, certifying –there are many things to check off and follow-up.
Mortgage tech is more than just a checklist that employees check off as they complete tasks. It’s a management system that securely stores, transfers, and tracks the process.
Scalability and Customer Experience
Here is another notable difference between traditional office automation and mortgage tech automation –the latter is built to scale, meaning that whether you’re a single loan officer or multi-loan officer brokerage, your mortgage tech automation should fit YOU and help you to grow your business the way you want
Speaking of building your business, one of the surest ways to beat out the competition in a digital world is to kill it with your customer experience. While traditional office automation is focused on the inner-workings of the office, mortgage tech automation (at least the good ones) put just as much care into the customer experience.
When it comes to automating today’s mortgage office and team, you need more than traditional office tools.
But wait! Does that mean you need a whole end to end platform? Well, that’s entirely up to you!
With LenderHomePage’s stackable digital mortgage platform, you choose which mortgage tech tools you need to fill in the gaps in your office automation. From mortgage website to mobile mortgage apps to mortgage point-of-sale system, you choose what you need to get more done.