Intelligent Mortgage Automation

The Three Waves of Mortgage Processing

Mortgage banks have adopted innovative staffing models, technology and automation over the course of the past two decades in order to better manage loan volume variability, accelerate loan application turn around times and contain loan origination costs, all the while trying to maintain margins in a highly competitive environment. ​

This has manifested itself in what we have identified as The Three waves of Mortgage Processing.

In parallel with the adoption of some of the first standardized loan origination systems, Wave 1 consisted of Mortgage banks hopping on the BPO, or Business Process Outsourcing, bandwagon. But there was a problem – Wave 1 consisted of generic outsourcing providers without any knowledge of the vertical mortgage business – this resulted in initial cost savings from a headcount perspective, as certain tasks were sent offshore to be performed, however, these savings were negated by the lack of efficiency, where routine tasks as well as exceptions had to be routed back to the US and ultimately this became the norm, forcing the mortgage banks to outsource the more menial, non-domain specific processes, never achieving the savings and efficiencies that were promised.

Wave 2 was different. It was still predicated on outsourcing but this time to domain-centric providers that could scale up the more complex origination processes including loan pre and post underwriting. This unlocked the power of the offshore workforce and several mortgage banks have been successful at managing these relationships, whether captive operations or third parties, allowing them to gain the efficiencies and savings that they sought. But there was still a problem. The Wave 2 companies still had to scale with people, even though some technology was tactically deployed to alleviate the strain on the human workforce.

Enter Wave 3. With advances in automation, artificial intelligence (AI) and machine learning (ML) technologies, the opportunity to accelerate the “loan origination to close” processes while containing costs and driving efficiencies has arrived.

Companies like Automation Anywhere, Google, Microsoft, all tout automation platforms that can extract data from documents, interpret the data using proprietary IP, and deliver cost savings and improved efficiency.

Or can they? There is one final problem, one that had been partially solved in Wave 2 but left by the wayside. That was the vertical domain-centric solution. The AI/ML platforms listed above are generic, good enough when deployed as point solutions i.e., solving one single problem, but inefficient when it comes to understanding the domain-specific requirements of the Mortgage vertical and integrating into the Mortgage ecosystem. In Wave 3 it’s not just about building and deploying BOTS1, it’s about ensuring that the domain knowledge is embedded into the solution so that the platform can be stood up faster and can accelerate the ROI for the Mortage processor.


The MOZAIQ team has been working in the Mortgage ecosystem for over twenty years. We were one of the first to build both a generic (Wave 1) and domain-centric (Wave 2) business process outsourcing (BPO) firm targeted at Mortgage Origination companies, helping them to seamlessly expand and contract their workforce to better align with loan volume variability and to enable long-term cost per loan savings.

MOZAIQ is the first to harness the power of AI and ML to build a domain-centric platform – the first Wave 3 Mortgage automation platform – that allows Mortgage originators and servicers to rapidly deploy targeted automation solutions, enable operational flexibility and achieve a faster ROI.

The MOZAIQ SaaS offering is a digital worker-enabled per loan transaction model, eliminating costly software licensing and startup costs, allowing customers to keep costs in line with loan volume. Its pre-built offerings deliver foundational and vertical process automation out of the box, while allowing customizable processes and services to be built on top of the core intelligent platform and deployed either on-prem or in the cloud.

But the key is not just the deployment of BOTs, this will not get to the expected efficiencies and savings. An effective Intelligent Automation solution requires that multiple components work seamlessly together. A BOT needs to be trained. A BOT needs to be managed. The documents need to be classified (indexed), and data needs to be extracted AND cleansed (no existing OCR solution extracts data with 100% accuracy) before the BOTs can go to work. Loan origination systems need to be integrated with. Audit trails are mandated.

The MOZAIQ platform has integrated these disparate requirements into one simple, easy to configure and deploy platform.

The core components of the MOZAIQ platform include:

Process Orchestration Layer: An automated process usually requires multiple BOTS to work in a coordinated fashion. They need to be managed by an intelligent “BOT manager” to facilitate communication, handoffs, error and exception handling.​ The BOT manager needs to be optimized for the specific set of processes it is overseeing.

Automation Framework Layer: MOZAIQ has incorporated the best of breed Robotic Process Automation (RPA2) products to build scalable, reusable and manageable BOTS​. Platforms such as Automation Anywhere, Microsoft and UiPath are deployed on a per-process level, depending on the automation requirements.

Intelligent Data Processing (IDP) and Classification: MOZAIQ uses AI and ML Tools to pre-build digital workers and processes to enable the foundational document classification/indexing processes, and the data extraction and post-processing for Mortgage documents​.

Audit, Metrics & Reporting Layer: No two processes are alike, and no two clients are the same, meaning that every automation deployment must be tested to ensure the right level of accuracy is achieved. MOZAIQ has automated the manual testing of documents, provides reporting on process metrics and the ability to seamlessly audit the digital workers (BOTS)​.

Integration Layer with Systems of Records: MOZAIQ has pre-built the integration into common Mortgage platforms using digital workers to integrate into multiple systems of record to further extend the automation.​

The MOZAIQ Solution

The MOZAIQ mortgage process automation as a service solution can index more than 232 mortgage document types as well as extract and validate structured and unstructured loan data from a wide variety of formats (up to 6,600 data elements).

Several pre-built vertical Mortgage processes can be deployed out of the box, including Loan Setup, Loan Estimate, Lock Confirmations, Third Party Service Orders, Pre-Underwriting, Pre-Fund Audit, ULDD Edits, Investor Package Generation, Loan Delivery, Post Close Audit, and Servicing File Setup. The solution uses pre-trained AI models to execute complex mortgage processes at unprecedented speed, scale, and accuracy.

1What is a BOT? A BOT (roBOT, get it?), also known as a Digital Worker, is a software program that performs automated, repetitive, pre-defined tasks. BOTS typically imitate a human user and can perform tasks at a faster rate and more accurately. For example, a BOT can be programmed to enter expense receipt data into a company’s finance system, or it can type information from a claims form directly into the claims platform. What are called “swivel-chair” tasks, where a human reads the data from a physical document on her left and types it into the keyboard on her right. Back and forth. Of course, the data has to be extracted, or read, from an underlying document; that task can be performed by another BOT, one that can read characters, words and strings of data using context-driven logic or key value pair logic. But we digress.

2What is Robotic Process Automation (RPA)? RPA is a software platform that enables the creation, deployment and orchestration of BOTS that emulate human actions interacting with digital systems and programs. An RPA platform consists of multiple BOTs and manages, coordinates and synchronizes the tasks of the BOTs much like a human manager or supervisor would.

MOZAIQ’s AI platform delivers out of the box and customizable process orchestration, automation frameworks and intelligent data processing capabilities – ready-made to enable intelligent automation​ for the Mortgage industry.

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