Steps of the Loan Origination Process That Can (And Should) be Automated

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The loan origination process is one that was once seen as too complex for smaller businesses to take care of. There were too many steps to take and there would be a need for many hands on deck to ensure the process went smoothly.


But that was then. And although then seems like forever, it was only a few short years ago that this was the case.


With rapid technological advancements in our field, this has changed. Now, automation has allowed smaller businesses—and even one-person shows—to not only join the industry but to be a real competitor with the big banks.


When starting a mortgage brokerage, it is now possible to eliminate the need for the added staff big banks typically employ. Instead, automation tools are a game-changer that open up opportunities for smaller companies.


Which steps of the loan origination process should be automated

Imagine the manual processes banks and loan originators needed to go through before technology entered the picture. Mounds of paperwork lined the desks of bankers and lenders and had to be sorted through and manually read.


Automation tools have been the answer to an inefficient process—not to mention the environmentally friendly answer, saving tons of paper in the process.


With the right tools working for you, a promising mortgage brokerage is attainable for a company of any size. Some of the biggest time- and money-savers are:


  Loan origination. From the application process through the risk, underwriting, and the decision-making, automation tools can relieve so much of the tedious paperwork and manual processes. AI (Artificial Intelligence) algorithms help with risk assessments and technology platforms to keep your loan status organized.  

  Servicing and reporting. Service your loans through an online platform to stay organized and keep track of progression. Statements can be digitized, credit bureau updates generated, and account management tasks can be updated automatically. As a lender, you will need access to a full line of reports and automated tools free up time that would otherwise be spent on these tedious tasks. 

  Collection and communication. Payments, action plans, emails to and from your client—these are all things that an automation tool can help you with. On top of relieving you of some of these duties, a platform will also house this information and keep everything organized and accessible to both you and your customer.


How they can help

According to Ellie Mae, it takes an average of 45 days to close a home loan as of June 2019. But that simply won’t do. There are too many advancements in our world making every system operate quicker and more efficient.


Automating your loan origination process can help


  Keep you more organized

  Keep your client up to date on their loan status

  Ensure all steps are completed in a timely manner

  Close loans faster

  Get you better reviews and more referrals


If you want to compete with the big banks and brands that have large advertising budgets and a team of marketers, you’ll need to blow away the customers you’re able to work with.


Having a seamless process that has few flaws and gets the loan approved quickly is the ideal loan origination process for an MLO.


Want to know how to start utilizing these available tools? Head here for a free demo.