How Mortgage Automation Can Improve Loan Processes

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In our highly digital world, customers for every industry expect information at their fingertips, and the mortgage industry is no different. For this reason, it is essential for mortgage lenders to cater to these tech-savvy clients, and mortgage automation software is the answer. Mortgage automation uses automation software to automate many different mortgage marketing processes and procedures, allowing mortgage agents to focus on direct customer service, analytics, and closing deals. But what is marketing automation and how can it help your business grow and succeed?

Key Takeaways

  • Mortgage automation is using technology to automate the mortgage marketing process.
  • Mortgage automation enhances productivity, improves accuracy, provides a comprehensive view, improves customer experience, and streamlines workflow.
  • It also makes audits easier, enhances scalability, predicts revenue, and improves regulatory compliance and fraud detection.
  • Best practices for mortgage automation include knowing your audience and testing and updating your automation strategy.

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What is marketing automation?

Marketing automation is the process of using technology to automate many different areas of the mortgage marketing process. This can include communications between your business and prospective customers as well as with current and past customers. By connecting with customer information within your customer relationship management (CRM) platform, these communications can include personalization and be triggered by specific events throughout the marketing process. These communications can include emails, phone calls, text messages, and social media posts and interactions.

How does marketing automation work?

In order for marketing automation to work, you must have a good understanding of the messages you want to send to your prospects or clients for each step of the marketing process. Once you understand this and create your unique messages, automation can begin. When a client reaches a specific step, it triggers an action. This can be an email marketing campaign, a trigger to a loan agent to place a follow-up call, or some other action you set within the automation.

10 benefits of mortgage automation

Leveraging mortgage automation tools allow mortgage lenders to expedite many steps within the lending process without sacrificing quality service. In fact, taking advantage of automation allows you to focus more directly on your customer service and your customers. Here are some of the many benefits mortgage automation offers.

Enhanced productivity

Let’s be honest. There are not enough hours in the day for more mortgage lenders to accomplish everything they need to by hand and still have time to focus directly on their clients. Automating certain areas of the mortgage loan process can help lenders recover some time lost during the day to manual work and give them the extra hours they need to be successful.

Improved accuracy

Human error happens and it is not uncommon for errors to happen during the loan process. Automated processes, on the other hand, help to eliminate these human errors or oversights when they are programmed with the established rules and parameters in mind.

Comprehensive view

With a simple click of a button, you can prepare a comprehensive view of all the documents that have been received, verified, or potentially flagged for a necessary follow-up without having to track down missing documents. Everything stays in a central location helping to streamline the entire process.

Improved customer experience

Processing documents during the loan origination process and closing can take weeks to months for loan agents to process. Mortgage automation can speed up this process, allowing documents to be processed 24/7 without the need for direct processing by the lender. This helps to eliminate human error and make closing much easier and more streamlined for your customers.

Streamline your day-to-day workflow

Without automation, the daily workflow of a mortgage loan agent is not clearly defined or established and can become a whirlwind of data entry, documentation collection, email notifications, email creation, and tasking assignments. BY adding automation to the majority, if not all, of these processes, you create a smoother daily workflow that is more efficient for all loan agents and employees within your organization.

Make audits easier

When you automate your documentation and loan processes, you and your employees can easily and quickly respond to potential risks, easily mitigate them, and implement necessary changes that stay within compliance guidelines.

Enhanced scalability

As demand increases, training new staff to understand data analysis, document stacking, data extraction, and more takes an incredible amount of training and time that your business may not have. Automation reduces these training demands, as well as the risk for potential human errors and mistakes that can impact your business’s success. This automation also reduces the overhead costs associated with this necessary training.

Predictable revenue

With a mortgage automation system in control, a lender can easily predict their revenue streams. The automation system can help determine the likelihood of a lead closing and allow the lender to estimate when the process will mature and predict future loan income.

Improved regulatory compliance

All mortgage lenders must comply with state and federal regulations in all aspects of the lending process. Within an automated process, loan applications and documents can automatically be assessed for compliance, helping to reduce the risk of human error and improve borrower communication and transparency.

Improved fraud detection

Mortgage fraud is a steadily rising problem that mortgage lenders face. With the help of mortgage automation, lenders can leverage Loss Origination Systems (LOS) and the predictive analytics it offers to help determine risks associated with specific loans and buyers.

Best practices for mortgage automation

When you decide to add mortgage automation to your business, there are a few things to keep in mind in order for the process to be successful.

Know your audience

First and foremost, you must understand your audience and use your automation to meet their needs in their current situation. As you consider the different steps, think about what your specific audience would do at each step and cater your automation response to those likely scenarios.

Test and update

No mortgage automation program works perfectly at first. The best way to ensure you are developing a successful automation strategy is to test your results and make changes as needed. For example, if you are finding a specific email message that is not receiving the outcomes you expected, consider changing that component and see how your results change.

Let mortgage automation boost your business

Adding mortgage automation can take your business to the next level, all while giving you the opportunity to focus on more direct contact with your clients. Here at Good Vibe Squad, we understand your desire to grow your business with automation and we are here to help. 

Schedule a strategy call today!

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