Processing Equilibrium Moving Mortgage Industry Towards Automated Processing
Your Guide to Automated Mortgage Processing
Mortgage Process Automation Primer Main
Primary Factor 1 | Cost Reduction
Primary Factor 2 | Real-Time Opportunity
Primary Factor 3 | Processing Equilibrium
Primary Factor 4 | Scalability
Processing Equilibrium with Automated Processing Solution
Processing Equilibrium is another factor that leads banks, insurers, and other financials towards an automated mortgage process solution. Essentially, many banks want to ensure equivalent processing time on a mortgage application whether it was submitted online and is completely electronic or whether it was filled out on paper and submitted via mobile device.
Understanding Process Equilibrium
Creating a processing equilibrium refers to setting up a system, both in hardware and software, whereby the processing results with respect to time and accuracy are generally consistent. Specifically, mortgage processing turnaround time (TAT) and data accuracy should be relatively invariant to the varying input sources, e.g., digitally-generated loan packet submitted online vs. a paper-based loan packet submitted via mobile device. Even though the mechanics of ingesting the mortgage application documents, classifying them, and extracting relevant data fields are quite different in these two cases, the bank, insurer or financial institution most likely wants to deliver near uniform TAT and data accuracy.
An automated solution for mortgage processing allows a company to level the playing field with respect to loan packet origination (e.g., digital vs. paper) and create a processing equilibrium. The resources required to process a paper-based loan are on the order of 10x-20x the resources required for a fully electronic loan submitted online. With a Cloud-based mortgage automation solution, the turnaround time and accuracy are controlled largely by the number of CPU cores in the configuration. Since the number of cores in the configuration can be scaled virtually on demand in the Cloud, both vertically and horizontally, the output results with respect to processing speed and accuracy can also be controlled by the client to ensure relatively uniform results, regardless of input source.