Change is tough but there are solutions
The US market generated over $4 Trillion in mortgage origination volume in 2021. That number is expected to be well below $2.5 Trillion in 2022, with refinancings plummeting an estimated 80% year over year (Mortgage Bankers Association).
The mortgage achilles heel has long been the cyclicality of the industry (e.g., sensitivity to interest rates) combined with manual review of documents, requiring the rapid scaling up and down of employees for both front and back office tasks.
Automation helps drive efficiency critical to your survival
While front office hiring and tech investments are typically more of the focus for mortgage banks, the back office deprioritization presents both a challenge and an opportunity in times of change.
The complexities of the business, requiring hands-on reviews of loan data, credit checks and approvals, result in long turn times, accuracy issues, and a lack of scale. Tech-centric mortgage companies have long known this, and now more of these and other forward-looking organizations are positioning themselves for what’s next by further investing in back office automation supported by process improvements.
One approach gaining momentum, “intelligent automation”, is a combination of artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA) that enables companies to offload repetitive “swivel chair” tasks to digital workers, enabling valuable resources to deliver services higher up the value chain.
After all, a mortgage is a commodity product, and mortgage companies must differentiate through efficiencies, lower costs and customer service.
Leaders are using these times of change to prepare for what’s next
Leaders in the mortgage lending space are using the 2022 market slowdown to invest in intelligent automation, allowing them to better weather today’s storm, and position themselves to win tomorrow. One technology-forward MOZAIQ customer has not laid off a single employee as of late September, 2022, thanks to their prescient strategy of investing in intelligent automation for back office processes from day one.
By using automation to compress the overall loan cycle time, organizations not only help decrease their turnaround times and reduce costs, but also increase efficiencies by freeing up employees to focus on higher ROI work, helping to gain scale by building and adopting new processes, and leveraging additional technology automation to continually drive improvements.
The key result is customers receive approvals and funding faster, with cost savings passed on to them with easier, faster, more accurate, lower-cost lending, boosting the lender’s brand and enabling scale.