Credit unions, like all mortgage lenders, are under pressure to meet their members’ expectations for fast, secure, and convenient digital experiences across the board. Credit unions must meet and exceed the requirements of their members to remain competitive. And to do that, credit unions need to automate the lending process. To help credit unions on their automation journey, here are five mortgage processes they should automate now:
Typically, appraisals are among the longest, most expensive and most essential parts of the mortgage process. Automating assessments offers benefits to both credit unions and their members. For example, credit unions can use data analytics tools to analyze factors such as comparable home sales to determine home valuations in seconds, saving their members the cost of hiring evaluators. Appraisal automation also speeds up the mortgage process because members don’t have to wait weeks for their credit unions to receive their appraisals.
As competition for new members intensifies from traditional and non-traditional financial institutions, integrating cross-selling products has become advantageous for creating revenue and increasing member retention. Credit unions are more likely to know their member base, and there’s never been a better time to leverage that knowledge to deepen existing relationships.
Debt optimization is an example of an automated process that a credit union can tap into before closing a mortgage loan. This automation analyzes a member’s financial data to determine if there is any existing consumer debt that can be consolidated or refinanced within the credit union, allowing for the possibility of a lower mortgage rate or better loan .
While this option may not benefit everyone applying for a mortgage with the credit union, there is always the possibility of cross-selling during the post-closing process. By clicking a button in the Mortgage Origination System (LOS), the member’s information is automatically populated into the consumer’s LOS to promote other consumer loan products such as credit cards, auto loans prequalified and personal loans.
Collaboration is only possible if credit unions implement automation technology that enables integrated operations. With automation, credit unions can work together across all product lines to provide more efficient and best-in-class home buying experiences for their members.
Providing accurate information to borrowers at the right time is an essential part of the home buying process. Thus, credit unions depend on their loan officers to prepare the closing documents and send them to their members. However, relying on humans to carry out this step of the process can often lead to mistakes. For example, credit unions pay the price if their loan officers underestimate or overestimate the fees associated with loans.
Credit unions that automate the disclosure process can send accurate disclosures to their members almost immediately.
4. Collection of documents
It takes a lot of time and effort for borrowers to manually collect and send the necessary paper documents to their credit unions. From there, credit unions must manage the time and effort of manually reviewing documents submitted by their members. This takes credit union employees away from their main job and increases loan processing time.
Automating the process of collecting all necessary mortgage documents helps credit unions reduce costs and stay competitive. Automated document collection systems allow credit unions to set up customer portals to process, track, share and collect required documents.
Automation makes it easier for credit unions to approve documents and allows their members and loan officers to view the status of requests and quickly approve or review document requests. Additionally, automation helps credit unions comply with federal, state, and industry regulations by providing standardized templates for communication, automated file management, and eliminating the need to send sensitive documents to members via email. -mail.
5. Loan validation
Data-driven decision making is key for credit unions to improve their operations and better serve their members. However, manually collecting financial and other mandatory member data, including government monitoring information, is labor intensive, time consuming and difficult to achieve. Additionally, the greater the volume of data that credit union employees must enter and re-enter, the greater the risk of introducing transcription errors.
Credit unions can mitigate the delays and inconsistencies associated with manually collecting financial and other mandatory member data by automating data collection. And after receiving this data, credit unions can also create business rules that can automate the next steps in the process.
Ensure the right technology stack
A key part of automation is ensuring that a credit union has the right technology stack in place to support these processes, especially a configurable LOS with a smart and open allowing integrated solutions.
For the processes mentioned, an API-enabled LOS will allow third-party vendors to integrate and help deliver a point-of-sale platform, optical character recognition, and robotic process automation, among other components.
Automating repetitive, high-volume, low-interaction processes from employees allows these workers to focus on improving interactions with members and developing and using innovative technologies, which which in turn leads to increased approval rates, increases revenue opportunities, and enables credit unions to create lifetime financial management. relationships to support a member’s entire financial journey.
Ian Goldsmith is senior vice president of product at MeridianLink, a provider of loan origination systems for financial institutions based in Costa Mesa, California.