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Mortgage document automation for the AI-empowered underwriter

31 Aug 2023
featured mortgage document automation for the AI empowered underwriter

In the dynamic mortgage lending landscape where efficiency, accuracy and compliance are paramount, the emergence of document automation powered by AI presents an invaluable opportunity for loan underwriters.

By harnessing the capabilities of AI, document automation doesn’t just automate previously manual processes like data entry – it provides underwriters with a powerful assistant, enabling them to make better informed decisions with improved efficiency and confidence.

Embracing automation is not only a means of streamlining operations, but a tool for professional growth, allowing underwriters to remain agile and adaptable in a competitive mortgage landscape.

With the assistance of AI, underwriters are empowered to shift their focus from tedious, time consuming tasks to critical lending decisions and proactive customer engagement, ultimately fostering a more scalable, efficient mortgage workflow.

Streamlining qualification for complex cases

Income verification is as equally time consuming as it is important to lenders, and while every applicant is different, those with non-traditional income, such as self employment, can present specific challenges for lenders determining creditworthiness.

As mortgage lenders increasingly look to cash flow data rather than credit scores to qualify non-traditional borrowers, underwriters are looking for efficient ways to analyze up to 24 months worth of bank statements and other financial documents. For applications that include multiple borrowers or employers, this process can be even more complicated.

Automated income verification enables underwriters to streamline complex income calculations across borrower types by analyzing income documentation such as pay stubs, bank statements, W-2s and tax forms. This means lenders can process applications faster – and offer a smoother overall experience for applicants.

For example, non-QM lender Deephaven Mortgage services non-traditional borrowers who have been locked out of the GSE market due to certain standardized requirements like non-W-2 income or short credit histories. By partnering with Ocrolus to automate bank statement analysis while obtaining a more accurate assessment of borrower income, Deephaven saved over 2 hours of underwriter’s time for each mortgage application.

Customized calculations for informed decision-making

For traditional and non-traditional borrowers alike, accurate income calculations are vital. A precise understanding of a borrower’s income provides lenders with a reliable metric to gauge their ability to repay a loan.

There is no one-size-fits-all approach for calculating applicant income for both traditionally and non-traditionally employed borrowers. Lenders need to be able to estimate and verify income across a variety of use cases including salary, gig employment, hourly income and more.

Income verification technology powered by intelligent document automation enables lenders to quickly analyze and calculate applicant income on a case-by-case basis based on multiple income calculations. This helps ensure lending decisions are calculated accurately, objectively and consistently across borrower types, minimizing future risks.

Simplified note and comment tracking

In mortgage lending, effective communication isn’t just a nicety – it’s an absolute necessity. Each step in the lending process relies on clear interactions, especially between loan officers and processors. Given the sheer volume of data and details in play, ensuring everyone involved is on the same page helps save time spent on duplicative work and reduce errors due to gaps in communication.

Ocrolus document automation technology offers mortgage lenders a simplified and centralized hub for note and comment tracking throughout the life of a loan file. This enables loan officers and processors to leave notes, ask questions and share updates in real-time, helping provide vital context and clarification while increasing efficiency and collaboration between teams.

Seamless integration with LOS technology

Efficient mortgage operations require tight-knit integration between various systems. Integrating AI-powered document automation and the loan origination system (LOS) helps provide a unified mortgage ecosystem for lenders.

Loan officers can promptly retrieve and view critical information, loan processors are equipped with comprehensive details to move forward and underwriters benefit from a consolidated data pool, facilitating informed decisions. This not only streamlines the operations but also optimizes the entire mortgage processing workflow, making it more reliable and efficient.

Automation of manual tasks for increased efficiency

Repetitive tasks in mortgage document review can be time-consuming and divert underwriters’ attention from important work. Intelligent document automation efficiently handles these routine tasks, enabling mortgage professionals to concentrate on lending decisions and providing tailored customer service.

By reducing the manual workload, underwriters can focus on tasks that require critical human analysis and problem-solving. As a result, document automation streamlines the lending process, ensuring it’s both efficient and aligned with customers’ needs.

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Embracing the future of mortgage lending

Automation is a tool, not a threat, for underwriters. By adopting automation, underwriters don’t just simplify tasks but elevate their professional capabilities, giving them a competitive edge.

Rather than merely keeping up with technological advancements, embracing automation gives underwriters additional job security. By enhancing their skills and becoming an AI-empowered underwriter, mortgage professionals can position themselves as valuable, forward-thinking employees in a rapidly evolving industry.

More than mere adaptation, it’s a strategy for underwriters to excel, ensuring they remain a vital part of the mortgage industry and continue to provide unmatched value to borrowers.

AI-powered automation is setting the stage for unprecedented efficiency and precision in the mortgage lending industry. Underwriters, equipped with these advanced tools, are not only able to streamline operations but also pivot their focus towards customer engagement and making more informed lending decisions.

Integrating intelligent document automation within their lending technology stack enables lenders to improve efficiency and flexibility while minimizing risks and enhancing customer experience. As the industry continues to evolve, embracing these technologies is not a mere trend but a necessity, positioning underwriters and lenders at the forefront of a tech-driven, customer-centric future.

Book a demo to learn how Ocrolus can help your team build an efficient automated mortgage workflow. 

Key takeaways
  • AI-driven document automation is revolutionizing the mortgage lending landscape by enhancing speed, precision and accuracy, empowering underwriters to shift their focus from routine tasks to strategic decision making and direct customer engagement.
  • Automation streamlines the complex process of income verification, especially for non-traditionally employed borrowers. Examples like Deephaven Mortgage illustrate the time-saving benefits of automating bank statement analyses, highlighting improved efficiency and more accurate assessments of borrower income.
  • Integrating intelligent document automation with LOS technology offers lenders a unified ecosystem to ensure accurate income calculations, access real-time notes and comment tracking and ultimately make more informed decisions while enhancing the customer experience.
  • By becoming an AI-empowered underwriter, mortgage professionals can help secure their future and grow their career by embracing technology in a rapidly-evolving industry.