Mortgage Industry: Feeling the Pain of 2022

The current state of mortgage financing is unprecedented. The interest rate hikes have been felt across the board. Gone are the days of ‘free money’ and ‘Helicopter Ben’. With even more hikes looming, the clouds have darkened.

To survive and thrive in this market, lenders must offer a responsive, individualized, and automated experience to satisfy the wide range of client needs/expectations throughout the financial spectrum.

Mortgage lenders must keep up with technological developments in robotic process automation (RPA), artificial intelligence (AI), machine learning (ML), and APIs to remain competitive. They must also adopt mortgage technology that will best enable them to meet the changing needs of their clients.

In our most recent insight, we looked at technology trends used in this evolving fintech landscape and how they affect mortgage lenders, customers, and growth.

Manage Repetitive Tasks with Process Automation

Although many lenders are still hesitant about the advantages of implementing new, automated ways of working, the mortgage sector can be process-oriented.

Mortgage lending requires its personnel to have extensive knowledge-based skills and perform many repetitive operations while accurately handling many papers, forms, and compliance instructions.

Mortgage lenders can gain the following by embracing digital transformation and mortgage technology, which includes mobility, analytics, and paperless processing:

  • Saves time.
  • Reduce costs.
  • Higher productivity
  • Reduces mistakes.
  • Streamlining procedures
  • A rise in effectiveness.
  • Ensuring conformity.
  • Efficient administration of documents.
  • Increased auditable record visibility and openness.

Business process automation can significantly impact the sector by lowering administrative burdens on staff and enabling them to use their knowledge, skills, and expertise to provide better customer service.

Big Data and Analytics to Boost Insights

Big data is expanding; according to the World Economic Forum, by 2025, 463 exabytes of data—or 212,765,957 DVDs—will be produced daily globally.

Mortgage lenders can scrutinize loan applicants to a much greater extent by becoming more data-centric, enabling a deep dive into customer profiles at a granular level through tools that don't just look at databases but also at additional information like tweets and publicly available news clippings. Lenders can better understand these consumers, their financial behavior, and even the possibility that they will make repayments on time by mining data sources and analyzing the results. This immediately affects how mortgage lenders manage their accounts and can facilitate cross-selling and fraud detection. Lenders who keep an eye on emerging market trends and look for methods to boost profitability through data analysis may be more proactive, effective, and quick to act. For example, a bank's decision-making could be more informed with more data.

Advantages of AI and ML-Driven Risk Analysis

Massive improvements in the mortgage business are now feasible because of AI and ML. According to a Forbes survey, 55% of executives believe AI will boost competition at their company and across the mortgage lending sector. And 59% claim that strategic decision-making now heavily weighs the industrial impact of AI.Machine learning (ML) can help lenders boost accuracy, reduce expenses, and increase efficiency by automating human operations. Still, even though it resembles a black box and cannot communicate the rationale behind a decision in simple English, cutting-edge solutions are overcoming this disadvantage.

A mortgage lender can more accurately determine a borrower's creditworthiness and risk of default with more information about them. The use of mortgage loan origination system can aid in the risk analysis of loan applications, help determine the best approach to interact with a customer profile, and streamline the decision-making process.

How Can AgileSoft Systems Inc. Help You?

In a period of digital transformation where mortgage lenders frequently struggle with a lack of time and resources, increasing productivity through data collection and analysis, process automation, and connected technological systems is crucial.We at AgileSoft Systems Inc. know the interconnectedness between these technological trends, how they operate, and how we can support your company in taking advantage of them. As a result, banks may boost productivity, cut expenses, raise customer satisfaction, and successfully manage future market shifts by implementing the most recent mortgage technology.