How Mortgage Automation Can 10X Your Business

In the beginning, automation takes time. However, with the right systems in place, you can multiply the number of clients you serve, raise the quality of your services, and close loans faster without hiring additional staff. Setting up just one effective automation process today, will continue to help grow your business for years to come.

There’s little doubt that automation has completely transformed the mortgage industry. But is it for the better? Today, most financial services providers are aware of backend issues that could use better handling. The problem is finding the time to plan, execute, and update existing workflows

So what’s the catch? Well, the mortgage business is a zero-sum game. If someone closes more loans with automation, someone else closes less.

That’s why it’s paramount to invest in the mortgage automation workflows that are truly the best fit for your business—and it’s critical to do it now, before the competition catches on. In this article, we’ll cover the main benefits of automating your mortgage processes, as well as the specific workflows you can use to 10X your mortgage business.

Leveraging intelligent technology and artificial intelligence, few digital tools are as effective at facilitating better decisions, optimizing marketing strategies, and streamlining manual processes. When used in tandem with customer relations management software (CRMs), you can workflow automation and usher in a digital transformation of your mortgage business.

In this article, we’ll cover the main benefits of automating your mortgage processes, as well as the specific workflows you can use to 10X your mortgage business.

Why should lenders consider mortgage loan automation?

Lenders should consider mortgage loan automation because it streamlines mortgage processing, reduces human error, improves efficiency, and enhances customer experience. Automation allows lenders to handle a higher volume of loans, increase productivity, and ultimately grow their business exponentially.

Table of Contents

1. What Is Mortgage Automation?
2. What is RPA mortgage automation?
3. What is automated mortgage underwriting?
4. What are the key features of mortgage automation?
5. What are the challenges of implementing mortgage automation software?
6. Top 5 benefits of mortgage automation
7. The A to Z of mortgage automation: Grow your lending business with a scalable system
8. The Power Of Smart Automation

What is mortgage automation?

In a nutshell, mortgage process automation allows you to run parts of your mortgage business on autopilot. Using the right combination of automated tools, workflows and software, you can convert otherwise complex data into simple digital translations. The upshot? You can process more loans in less time.

But the real power of automation is that it can be applied to many different aspects of your mortgage business.

• Are you struggling to consistently follow up on your clients?Set up automated campaigns so that no lead in your database is left unnurtured.
• Recipients not opening emails?Automated drip campaigns can boost your open rates by up to 80%
• Loan officers spending too much time on non-selling activities?Automate routine tasks and save up to 55% of the time employers spend on non-selling activities.

Mortgage process automation transforms your business into a more efficient machine. By integrating mortgage automation software, intelligent document processing, you can run parts of your mortgage business almost on autopilot. This innovative approach not only streamlines the loan process but also enhances loan quality and decision-making.

What is RPA mortgage automation?

RPA (Robotic Process Automation) in mortgage automation streamlines the repetitive tasks in loan processing. Think less the Dalex from Doctor Who, and more like C3P0 is your personal mortgage expert. RPA simplifies mortgage processing, streamlining procedures like data entry and borrower assessments, as well as reducing paperwork and speeding up document verification. For mortgage lenders, RPA enhances efficiency in application processing, data extraction, and reporting.

It’s not only a time-saver but also cost-effective, reducing manual processing expenses, aiding in fraud detection, and ultimately elevating customer satisfaction. Ultimately, RPA can be a strategic asset for mortgage businesses, optimizing processes for better results.

What is automated mortgage underwriting?

Automated mortgage underwriting is a process where computer algorithms are used to analyze and evaluate a borrower’s financial information, credit history, and other relevant factors to determine their eligibility for a mortgage loan. This automated system replaces the traditional manual underwriting process, which involves human underwriters reviewing and assessing the borrower’s application.

The algorithms used in automated underwriting consider various factors such as income, employment history, credit score, debt-to-income ratio, and property value to assess the borrower’s risk profile and determine whether they meet the lender’s criteria for a loan. While automated underwriting can expedite the loan approval process, it is important to note that not all borrowers may qualify through this system, and some cases may still require manual underwriting for further evaluation.

What are the key features of mortgage automation?

Mortgage process automation tools cover a broad spectrum. before we explore the benefits of automation systems and how they can help, here’s a quick run down of some notable features:

• Integrated LOS – Streamlines loan approval by seamlessly connecting with origination platforms.
• Intelligent automated decision-making – Enhances loan evaluation accuracy and efficiency using machine learning.
• Automated processing tools – Facilitates quick and precise underwriting.
• Workflow efficiency – Reduces manual errors and increases process efficiency.
• Automated document processing & management – Ensures accuracy and compliance in financial document handling.
• Regulation adherence – Maintains compliance with regulatory bodies automatically.
• Fraud detection mechanisms – Identifies and prevents fraud attempts in loan processing.
• Data trail accuracy – Provides reliable records for auditing and compliance.
• Enhanced customer service – Mortgage automation streamlines processing and improves accuracy, enabling customer service departments to respond more quickly and effectively to client needs.

What are the challenges of implementing mortgage automation software?

Implementing mortgage automation can come with its challenges, such as resistance to change from employees, the need for proper training and integration with existing systems, potential security risks, and ensuring that automation processes align with industry regulations and compliance standards.

Implementing mortgage process automation tools involves several challenges, each requiring a nuanced approach for effective resolution. Cutting-edge mortgage technology like Shape can help you face these challenges with confidence.

1. Integration with Legacy Systems – Mortgage business often operates on legacy systems which can be incompatible with modern APIs, creating integration difficulties. These outdated systems can impede the effective use of new technologies, necessitating complex workarounds. Shape provides seamless integration with existing Loan Origination Systems (LOS), such as LendingPad, ensure a smooth transition and effective synchronization between old and new systems.
2. Cost and efficiency – Investments in technologies like LOS and RPA can be undermined by poor data quality, leading to inefficiencies and high cost-per-loan metrics. Shape tackles this issue by automating various processes, enhancing data quality, and streamlining operations to improve overall efficiency and reduce processing costs.
3. Need for intelligent automation – Despite some advancements, manual processes remain prevalent in the mortgage industry. Even when steps like data extraction are automated, manual reviews are still necessary, especially during underwriting. This highlights the urgent need for more sophisticated, intelligent automation solutions that can enhance efficiency and accuracy while reducing costs. Through its intelligent automation tools, Shape greatly reduces the need for manual interventions, thereby enhancing accuracy and efficiency
4. Scalability and staffing – The mortgage industry is subject to seasonal fluctuations, which can create challenges in managing manpower effectively. Balancing staff levels to match varying loan processing volumes without incurring excessive costs is a persistent challenge.This issue is particularly acute for smaller lenders who may lack the scale to effectively manage these fluctuations Through its automated lead management and task prioritization features, Shape can help your mortgage business weather these fluctuations, scaling your operations in line with demand without incurring excessive costs.
5. Resistance to change and training – The introduction of new technologies can be met with resistance from employees accustomed to traditional practices. Shape’s user-friendly design and comprehensive training resources make the transition smooth for loan teams, ensuring valuable hours aren’t wasted.

5 Benefits of automated mortgage processing

1. Outpace the competition

According to the Harvard Business Review, chances of qualifying a lead when responding within the first five minutes are more 21 time higher than when responding within 30 minutes. Yet only 26% of companies manage to respond within 5 minutes.

You can easily outpace the competition by setting up simple automated onboarding emails and texts to instantly greet every new lead as soon as they share their contact details.

If you have a team, automation will also help you distribute incoming leads between your agents so that the ones that are the most qualified are aligned with the right prospects.

2. Consistently nurture your leads

The money is in the follow up. In fact, some studies suggest that 80% of sales occur after at least five follow-ups with a prospect.

The good news is, almost every follow-up can be automated. For example, you can send highly-personalized email and text drips to your leads with a predefined cadence. This allows you to nurture relationships and build trust with prospects, even before they decide to do business with you.

Automation helps you easily segment leads based on their location, last action, or areas of interest so with the right system you can follow up with the best offer for a particular client.

3. Boost your loan processing speed

Automation lets you process loans faster. According to the Federal Reserve Bank of New York, lenders reduced loan processing time by around 10 days with a little help from technology. And with the rise of online loan applications, borrowers expect loan processing times to decrease even more.

To supercharge your loan processing speed, you can integrate your CRM system with loan origination software and automatically trigger actions and notifications whenever loan status updates.

Additionally, automation allows you to reduce room for error when processing loans and potentially save thousands of dollars in compliance fines and penalties.

4. Increase your referrals

Ramping up referrals is one of the most powerful lead generation tactics you can employ. But when you focus on closing as many loans as you can in the moment, keeping in touch with past clients often becomes an afterthought.

And yet 60% of customer referrals happen within the first six months after the loan is closed. Automated referral campaigns allow you to stay in touch with your past clients and increase your referrals, without lifting a finger. After a loan is closed, simply set up an automated series of post-loan emails designed to keep the client relationship strong and help you stay top of mind.

5. Easily scale your mortgage business

It’s pretty difficult to scale a mortgage business that has many manual tasks and workflows—and the last thing you want to do is scale your messy and chaotic systems. People make mistakes, and unfortunately, without the right mortgage processing system in place, these mistakes will only multiply as your lead count grows.

In other words, when there are cracks in your systems, you can expect at least some of your leads to slip through them.

On the flip side, when critical aspects of your business are automated, there’s really no limit to how many leads you can work with at the same time. What’s more, this automation will give your marketing teams more time to focus on growth.

Even if you decide to invest in new marketing channels or lead databases, you can rest easy knowing that smart automation has your back. If you want to turn your lead flow on full blast, you can easily and automatically qualify and nurture every lead.

The A to Z of mortgage automation: Grow your lending business with a scalable system

Automated Dialer: Get your LOs on the phone with the right prospects

Ever thought about how much time you spend punching a dial pad?

With an automated dialer, you and your loan officers can automatically run through a large database of leads in much less time, increasing productivity by 200% to 300% compared to manual dialling.

But how can an automated system possibly know who to call when?

Glad you asked. Some sales platforms (Shape included) offer a smart lead prioritization system, which ensures that every call the system makes for you will be targeted to the most promising lead, at the most optimal time.

At Shape, we use a lead prioritization algorithm that analyzes each lead in your database based on a list of 27 key criteria to instantly connect loan officers with the leads most likely to convert.

Here are just some of the benefits of an automated dialer for your mortgage business:

• Contact more leads in less time.Save hours by making sure your reps aren’t wasting time manually dialing every lead in your database.
• Convert leads faster.Consistently follow up on your hottest leads at exactly the right time.
• Distribute the right leads to the right people.Automatically distribute via round robin or your own custom rules to ensure optimal performance across the team.
• Instantly plug in new lead sources.Quickly work through large databases of potential clients and easily scale lead gen and prospecting up or down as needed.

SMS + MMS: Skyrocket your opening rates

According to a Gartner survey, SMS open rates can be as high as 98%, compared to a mere 20% for emails. Additionally, the majority of people respond to SMS within just 90 seconds.

Here’s how you can use automated SMS texts to boost lead conversion rates:

• Improve customer experience.Automatically notify clients with texts whenever their loan status changes by integrating your CRM with your LOS.
• Increase engagement with new offers.Send your best offers via text or MMS to maximize engagement.
• Use top-performing automated sequences.Combine emails and SMS texts into powerful marketing sequences to keep your leads engaged over time.
• Personalize your texts.Customize your SMS texts by directly using contact details pulled directly from your central CRM or sales system.
• Stay compliant.Use a fully compliant platform to make sure your messages aren’t being flagged as spam. In Shape, we queue your messages to send just one text every 4 seconds to mimic human texting behavior for maximum engagement.

Automated email marketing: Send emails that generate real business

When it comes to ROI, not many marketing channels beat email. In fact, research shows that every dollar spent on email marketing can yield as much as $42 in return.

But achieving the highest possible ROI is only doable if you send the right email to the right person at the right time. Thankfully, this is something automation can help you achieve.

Here are just some of the benefits of automated email marketing:

• Higher open rates.Set up automated emails triggered by specific user actions and get up to 141.6% higher open rates than your standard business-as-usual emails.
• Boost revenue with automated lead segmentation.The right mortgage CRM will help you segment your leads based on your own custom criteria and send highly-personalized emails that drive 18X more revenue.
• Create powerful email drip campaigns.According to KissMetrics, marketing automation paired with sequenced email campaigns leads to up to 20% more sales.
• Convert more leads by personalizing your emails.Personalized emails deliver 6X higher transactional rates. Use your CRM system to automatically personalize relevant emails for every lead.

Call recording: The power of tracking from a central system

According to Hubspot, the majority of businesses use call recording mainly as a way to increase customer quality service or dispute controversial events. But there are other benefits that call recording provides for mortgage businesses.

Here’s why it’s important to have an automated call recording system for your mortgage business:

• Focused salesAllows your sales reps to focus on the prospects and actively engage with their pain points rather than taking notes during conversations.
• Advanced trainingYour CRM gives you a full history of conversations with every lead across all channels so that new agents have the full context for every recorded call.
• Protect your businessStay compliant and avoid potentially paying hundreds of thousands of dollars in regulatory fines by monitoring all marketing and sales activities from one central, compliant platform.

eSignature – Manage mortgage documents seamlessly

According to Fannie Mae, 66% of homebuyers would prefer to handle their mortgages entirely online.

No wonder the number of eSignature transactions has increased tenfold within just five years.

Integrate e-signatures directly into your loan management process to gain the following benefits:

• Save time on paperwork for you and your clientsAdd and edit eSignature documents directly from within your CRM
• Process loans fasterAutomatically change lead status in your systems as soon as your lead signs, automatically schedule follow up actions in your calendar.
• Improve customer satisfaction ratesTrigger emails and follow-ups based on a change in eSignature status to keep the transaction pipeline moving.

Unlocking the power of smart mortgage process automation

Wrapping up, it’s clear that moving away from outdated tools and embracing innovative mortgage automation platforms is a smart move for you as a mortgage specialist or financial service provider. This shift to simpler, digital solutions and smart technology is a game-changer in refining your business processes. It’s all about making the loan process smoother and guiding you towards smarter decisions. By adopting intelligent document processing and the latest in automation technology, you’re set to handle data fields more efficiently, cut down on processing costs, and stay aligned with regulatory demands. This isn’t just a step forward; it’s a leap into a future where your services are better, faster, and more client-focused.

Clearly, the role of automation in separating the best from the rest will be crucial. And yes, automation does take time and effort upfront. But after you set your mortgage processing in place, it’s only a matter of making small adjustments that make a very big impact for your clients and your business as an expert loan originator.

Ready to see for yourself? Find out how an automated mortgage marketing and sales platform can remove the bottlenecks from your transaction pipeline and help you consistently generate more leads.

Sign up for your free trial of Shape today!