October 7, 2020

Gut Renovating Mortgage Lending Using AI

The benefits of robotic text processing and intelligent process automation are impressive and numerous in every use case and industry. But when it comes to home loan applications and mortgage approval, the difference is not merely about speed and cost, but also about the very nature of the customer experience. Let’s examine the needs of a hypothetical mortgage originator and note the ways the right AI engine can inject quickness, flexibility, and enhanced security into the loan process.

First, the property sales contract must be analyzed. Dozens of separate data points must be extracted and filed or further scrutinized. Such analysis may include cross-checking data, fact-checking names and addresses, troubleshooting typos and errors, and, in rare but crucial cases, ruling out potential fraud line activity. When this work is done by a human workforce, it is repetitive, time consuming, and unfortunately not insulated against occasional error. When it is done by machine, using modern AI methods and engines, it is more immediate, more effective, and more accurate.

Decode the Layout for Meaning

However, it is worth noting that most machine learning systems trained for intelligent text processing “read” only the words contained in documents under scrutiny, extracting information from the semantic and grammatical contexts alone. This is a lot already, but it is not everything. In fact, one unique feature of Applica is that it additionally decodes the document layout itself for meaning, too. In practice, this means that Applica obtains, evaluates, and applies information from documents even more quickly and effectively than other AI systems on the market. Applica extrapolates data not just from raw linguistic input but also from the cluster structures of text that humans rely on for intelligibility and deploy intuitively in all writing, including the creation of documents.

The next step consists of generating a loan proposal based on the extracted data and issuing it to the interested party. When this unfolds as part of a traditional offline process, it can take a week or more from the time of the customer’s application. That is a long time for minds to change, second and third opinions to be consulted, and details of the original meeting or correspondence to be forgotten. Now imagine that a targeted and optimal proposal reaches the customer within hours or even minutes from the moment it is requested, because a scalable AI trained to do exactly the right thing can handle every step of the process with no lag time whatsoever. This is not only a matter of speed and efficiency, but also a completely new way of doing business in a restrictive, slow-to-act category.

What’s more, it’s a way to minimize the tedium and high cost of the astronomically high rate of non-acceptance, which is 90%, by most counts, across the real estate mortgage lending category. Cash savings for the mortgage originator can reach 50% thanks to the efficiency gained at this step alone, and of course other benefits bolster employee and customer satisfaction in ways that also deliver a bottom-line advantage.

Revolutionary Sensitivity to Meaning

From proposal acceptance to contract issuance and deal finalization there are further stages that similarly allow cognitive automation to close the loop more swiftly and more precisely than is possible for a human workforce, which is now free to serve existing, vetted or potential clients using those soft skills that AI can’t replace. Naturally, employees set free from the monotony of predictable paperwork have more time for meetings, calls, special case scenarios, and the kind of salesmanship that differentiates the great brands from the rest.

Depending on a lender’s needs, AI can also be trained to handle the sale and/or appraisal of mortgage-based investment products, as well as documents requested or issued by title companies at any stage of the property buying or selling process. In all such cases, Applica’s revolutionary sensitivity to the meanings carried by the appearance and structure of text enhances the effects of robotic text processing for a truly next-level intelligent document processing experience, with speed, savings, and strategic potential to match.

Care to learn more about how Applica can streamline and enhance your mortgage lending business while tremendously reducing your costs?

Connect with an Applica expert today.

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