Traditional mortgage lending is a complicated, time-intensive, and paper-heavy process. Indeed, the average loan application requires a staggering average of 500 pages to complete — a virtual filing cabinet of tax returns, income and asset records, and a host of other financial documents.
To complicate matters, many lenders still rely on analog processes and legacy systems to process mortgage applications, often leading to a slowdown in data collection and loan approvals. At a time when consumers expect faster and more streamlined digital lending experiences, traditional processes may no longer cut it.
That’s where mortgage automation can help. Many lenders may be familiar with mortgage automation software, given the wealth of features they offer that improve upon outdated workflows. But typical solutions within this space are limited to a fraction of the lending process. A mortgage automation platform goes beyond, offering many of the same benefits lenders expect (and some more) across the lending journey.
How mortgage automation software streamlines lending processes
Mortgage automation software benefits both lenders and consumers by modernizing the loan process. These tools connect lender and borrower ecosystems, providing a single interface for uploading documents, signing paperwork, and monitoring the progress of loans. Automating many of these steps also simplifies the application process, supporting faster approvals and a shorter time to close.
Here’s a closer look at the benefits of mortgage automation to both lenders and consumers.
How mortgage automation software benefits lenders
Speeds up loan applications and helps catch errors
Mortgage automation software harnesses automated document recognition (ADR) and optical character recognition (OCR) to identify and “read” documents.
Enhances the productivity of loan teams
Mortgage software can also increase the productivity of loan teams by allowing them to harness the power of automation instead of relying on paper documents and manual processes.
How mortgage automation software benefits consumers
Provides a smooth and seamless lending experience
Mortgage software takes the borrower through a clear, logical process that guides and prompts them through each step. And because it’s a digital process, consumers can apply for a loan at any time of day or night over their preferred device.
Gives consumers a one-stop portal for their loan
Mortgage automation software provides a central location where borrowers can upload documents, sign documents and disclosures, and monitor the progress of their loan application in real-time.
Mortgage automation offers many clear benefits. But the prevailing option — mortgage automation software — is more limited than many lenders may realize. Enter the digital lending platform: the next level of mortgage automation with the ability to connect the home buying journey from end-to-end.
Benefits of a unified digital lending platform vs mortgage automation software
Unlike narrower mortgage automation software, a unified digital lending platform (DLP) offers a broader solution that covers the entire application process, including: working to automatically verify data, using data previously provided by the borrower to pre-fill fields on the application, and being able to provide human assistance at every step of the loan process.
By contrast, mortgage automation solutions typically only focus on the beginning of the loan process. They support a borrower up to the point of pre-approval letter and disclosure package, but usually don’t go any further, stopping before underwriting and clear to close steps.
How Blend’s holistic approach goes beyond expectations
Blend originally started as a product for mortgage automation, but over time has grown to handle that and much more. While mortgage automation is focused specifically on streamlining and automating paper-based processes, Blend looks at the bigger, more holistic picture of the homebuying journey.
More than just a mortgage automation solution, Blend’s digital platform:
- Works to verify data automatically
- Integrates with technology to aggregate data from tax offer platforms and payroll providers
- Supports a variety of verification services (such as income, assets, employment, etc)
All of these pieces working together results in greater efficiency and a shorter loan cycle, saving your business time and money in the process.
Blend offers one of the industry’s best holistic digital mortgage solutions. We bring automation to the key workflows for loan officers, processors, and the broader stakeholders responsible for getting a loan to close. Our platform is flexible enough to meet the needs of a variety of operating models, including direct-to-consumer and retail. To ensure you’re staying at the top of your game, we’re constantly innovating and adding new services to the mix.
To learn more about how Blend can help transform the entire homebuying journey, visit our Mortgage page.