AI in Mortgage Lending
house

Artificial Intelligence in Mortgage Lending

The mortgage industry embraces AI technologies as more consumers appreciate the added benefits. More people willing to buy a house realize that having automated answers to general questions saves them time and effort. Technology nowadays can easily understand a customer’s request or concerns without help. Mortgage companies can thus focus their human resources where they are most needed. Companies rely on our SAFE Advanced Solutions to get a competitive edge in a highly competitive industry.

Ohio Capital Mortgage intends to utilize AI resources to enable faster processing. The new technology is called OCR and stands for Optical Character Recognition. It will help lenders process loan documents in a fraction of the time. AI has a proven record of accurately processing large datasets and reducing human error. Moreover, AI can send lenders real-time notifications when their potential customers look into other properties. This is thought to help businesses quickly react to market trends, identify potential flaws in their processes, and expand their customer database.

OCR will work on all four levels of document processing:

  • Capturing the data;
  • Classifying the document;
  • Extracting relevant data from the paper;
  • Verification of the details included.

Out of the stages mentioned above, extracting data will prove to be the most helpful, as that is a tedious process for humans, prone to making errors. Accessing data from scanned documents in a matter of seconds is a huge milestone in electronic document processing. The bigger goal is to improve the technology to the extent that mortgage lending can be entirely paperless. Ohio Capital Mortgage is one step ahead of its competitors from that point of view. Their operations manager, Diana Kuiper, told us that paper accounts for many expenses in terms of buying, printing, and storing. On top of that, losing paper documents is extremely frequent, and replacing them comes at an extra cost. Going paperless will ensure more data accuracy, increase transparency, and facilitate compliance for financial regulators like the Consumer Financial Protection Bureau.

American citizens can apply for a mortgage online by using their electronic signature. The goal for the mortgage industry is to be able to close a loan digitally without physically meeting a public notary, for instance. Several ongoing projects could make that possible, like eSign, eDocuments, eNotary, and eClosing.

The fintech industry is striving to facilitate loan processes and improve the customers’ experience. Soon, AI will help you buy a home faster. For lending companies, SAFE Advanced Solutions can help you eradicate the threat and ensure safe lending practices.