It’s amazing how quickly things can change. Exactly a year ago mortgage rates were low and demand was high. It seemed like everyone was selling, buying, or refinancing a home. There’s no doubt that the summer of 2021 was hot for mortgage lenders, but everyone knows that the market must cool eventually. Recently, the Fed hiked interest rates by 0.75% for the second month in a row, and demand for mortgage applications has dropped to its lowest level since 2000. How can lenders maintain their profits in a tough economy? The solution might lie in new automation technologies.
When mortgage applications were coming thorough faster than lenders could process, some may have pressed pause on their digital transformation efforts. At the time, it made sense to postpone process changes when they needed “all hands on deck.” However, as demand shifts and applications slow, it could be time to rethink digital initiatives and begin investing in high-quality automation. Using the latest advancements in Intelligent Document Processing, mortgage lenders can accurately and reliably extract data from mortgage documents and practically eliminate humans from the data verification process. Whether it’s extracting and verifying income data on W2s, paystubs, and tax forms or ensuring the presence and authenticity of signatures on each document, new advancements in automation, now powered by machine learning, can handle it automatically.
Mortgage lenders can quickly apply automation to the loan process to increase loan throughput and reduce the cost associated with human involvement.
A single mortgage loan file often contains over 100 diverse loan forms and documents. Wouldn’t it make things easier if these documents could be classified, labeled, and sorted automatically? Again, today’s AI-driven automation is the solution. New document processing technologies leverage powerful Natural Language Processing systems to accurately find, classify, extract, and verify data in structured, semi-structured, and even unstructured documents. Combine these features into easy-to-deploy software, and mortgage lenders can quickly apply automation to the loan process to increase loan throughput and reduce the cost associated with human involvement.
In a changing lending landscape, automation can save both time and money by increasing the efficiency of the loan process while simultaneously reducing human error. For mortgage lenders who are wondering how to shave down costs during a period of reduced demand, machine-learning automation is starting to look like an attractive solution.
Parascript is an established innovator in AI-powered automation solutions for the mortgage industry. If you’re interested in learning more about Parascript’s Intelligent Document Processing software, reach out to our team today to schedule your free demo.