How AI is helping mortgage lenders save time and money

AI is driving significant change in the financial services industry, transforming providers’ operations and optimizing the lending process.

AI-driven document automation enables lenders to improve the efficiency of their operations. Teams can manage their processes without frequently adjusting their workforce, infrastructure, or expenses. This is particularly valuable to mortgage lenders, whose operations, staffing, and investments have traditionally scaled alongside the changing housing market.

AI-powered document automation significantly impacts how mortgage lenders manage time and money. Document automation gives lenders an edge in a highly competitive industry by streamlining workflows and providing deep insights for faster, smarter lending decisions.

AI-driven operational efficiencies

The efficiencies gained with document automation begin with its benefits in reducing the manual effort traditionally required for document review. AI-powered solutions help protect mortgage underwriters against “stare and compare” fatigue, biases and distractions by incorporating automated workflows to enhance their work’s speed and accuracy.

By using AI to index and extract data from borrower documents automatically, lenders reclaim valuable time previously spent on manual data entry while minimizing the risk of costly errors. This allows loan officers to focus on building relationships and providing a seamless borrowing experience.

Powerful analysis for all borrower types

The structured data extracted by AI-driven document automation can fuel in-depth analysis that provides meaningful insights into borrowers’ repayment capabilities. This advanced technology gives lenders a comprehensive understanding of borrower profiles, optimizing loan approvals while managing risk effectively.

Automation introduces further efficiencies when calculating income. As borrower income profiles become more complex due to the gig economy and other non-traditional income streams, lenders can use AI to automate income calculation and verification. This allows for the extraction of crucial data and the simultaneous execution of numerous calculations, ultimately speeding up the loan approval process.

A deeper understanding of borrower profiles also enables underwriters to serve a wider pool of applicants, including those with non-traditional income sources. This inclusivity, combined with the faster approval process, enhances customer satisfaction and opens up new opportunities for borrowers and lenders.

How automation saved time and money for Hometrust

North Carolina-based bank Hometrust faced significant challenges with the time-consuming tasks of manual income calculation and document handling. The process involved relabeling loan documents and organizing large files and countless keystrokes, slowing their operations and increasing the risk of human error.

After integrating Ocrolus’ AI-driven document automation, Hometrust significantly reduced processing and underwriting times and boosted its efficiency. Hometrust estimates annual savings of 8,500 hours across their loan processing teams and $90,000 saved through streamlined document handling.

In addition to document automation, Jessica Fitchie, VP of Consumer Credit at Hometrust, has found AI training an indispensable resource for underwriters aiming to stay competitive. She shares, “Ocrolus’ AI-Empowered Underwriter Certification has completely transformed our underwriters’ mindsets. Instead of fearing that AI is a replacement for underwriters, we’ve come to see it as an essential tool that enhances our capabilities. This certification has empowered our teams to leverage AI effectively, making work more efficient and impactful.”

By adopting Ocrolus within its mortgage lending workflow and equipping its team with AI expertise, Hometrust has saved time and money, positioning itself as a forward-thinking leader in the mortgage lending industry.

With Ocrolus’ mortgage offering, lenders can automate a significant portion of their workflow, saving time and money while making more confident, informed underwriting decisions.

Book a demo today to see how advanced AI-powered solutions can enhance operational efficiency and reduce the risk of human error in your mortgage workflow.

Key takeaways

• AI-driven document automation improves operational efficiency for mortgage lenders by reducing the need for constant workforce, infrastructure and expense adjustments.
• Automating data extraction and analysis provides deep insights into borrowers’ repayment capabilities, enabling mortgage lenders to make faster and smarter lending decisions.
• AI-powered solutions help mortgage lenders save considerable time and money by minimizing manual data entry and reducing errors.