How to Identify the Right Mortgage Automation Partner? Do’s, Don’ts, and Must-Remembers


The need to automate mortgage processes could be more urgent than once thought. A recent survey reveals that most Americans are eager to invest in homeownership, but the current state of mortgage processes does not fit into their lives. Document submission, protracted reviews, approvals, qualifications, and risk scoring – all of these add to the loan’s lifecycle, particularly when it’s all done manually through paper processes.

Indeed, over 2 in 3 survey respondents said that automation could significantly speed up mortgage processes at the front and backend, to help close a loan faster. 58% also said they should be able to apply for a mortgage entirely from their smartphones.

Are mortgage businesses ready to cater to this demand? That’s where a specialized mortgage automation partner comes in. They could enhance your operational capacity without adding headcount, and introduce next-gen technical skills without having to hire or go through change management. The right partner could cut down automation timelines from months to a few weeks or even days.

How do you identify the right mortgage automation partner for your business? Here are a few strategic tips:

1. DO look for broad mortgage industry experience

Consider a company only if it brings broad mortgage industry experiences. This entails capabilities at origination and servicing stages, as well as title services, property preservation, and settlement. Generic automation scripts must be carefully adapted if they are to fit mortgage workflows. To enable this, your partner must be familiar with every stage of the mortgage lifecycle and every process type. For instance, Nexval brings 10+ years of mortgage industry expertise and employs 1000+ subject matter experts dedicated to this domain.

2. DO prioritize compliance and security, in addition to cost savings

Mortgage automation is definitely an efficiency enabler. For instance, it can reduce loan origination costs by 20-50%. But in addition to cost savings, businesses must prioritize compliance and security for the solution to be sustainable in the long term. The partner you choose should be compliant with ISO 27001:2013, which lays down the rules for information security management. It should also be SOC2 Type 2, which guarantees that the partner will effectively safeguard customer data.

3. DO choose a company with pre-built automation tools

Ideally, your mortgage automation partner should provide you with a good mix of prebuilt tools and tailored services. Prebuilt automation tools will reduce implementation timelines and make sure that you can generate value from your investment faster. These tools are also tried and tested, which makes them error-free and easy to maintain. For instance, Nexval offers 40+ prebuilt automation tools, which helps augment our tailored services for workflow automation, title process automation, servicing automation, and automation in origination. We also have a set of function-specific RPA bots designed for mortgage businesses.

4. DO opt for a pay per automation service model to support growth

Depending on the need and deployment model, mortgage automation can be costly, at least towards the beginning. A report by the STRATMOR Group found instances where only 8% of the technology investment put forward by lenders actually translated into lower loan fulfillment costs. You need to select the right pricing model, where automation technology is directly linked to business outcomes. That’s why at Nexval we offer a flexi-pay option, where mortgage businesses can only pay for the automation services they deploy.

5. DO ask for a demo fitted to your unique use cases

The right mortgage automation partner will bring broad industry expertise, and you need to qualify this so that it meets your specific use cases. Are you looking to reduce efforts when reviewing loan files for accuracy? Or, do you want to increase your documentation review capacity from 100 document types to 500 document types? You may also want to eliminate the human effort involved in transferring data between multiple systems. Ask your potential partner for a demo that addresses your unique use case, in addition to broad expertise.

6. DON’T go for vendor or LOS-specific solutions

The mortgage business may rely on one or more loan origination platforms like Unifipro, Lakewood, Fiserv, Encompass, and others. It is advisable to avoid vendor or LOS-specific solutions that are built for only one environment. These solutions increase your dependence on a single technology family and increase the risk of vendor lock-in. In the future, vendor lock-in may hold you back from transforming or expanding the mortgage automation landscape, as new tools may not be compatible with the existing software. Choose a vendor-agnostic and integration-ready solution instead.

7. DON’T opt for a one-size-fits-all automation platform

A ready-to-deploy mortgage automation platform may be low effort, but they are also limited in terms of configuration, customization, and integration. These platforms are typically meant for smaller businesses with low volume of requirements, that aren’t too variable or complex in nature. For mortgage automation to be truly effective, you need to be able to add new business rules, new templates, new workflows, new statistical models, etc.

8. DON’T deploy futuristic solutions without strengthening the foundations

Mortgage automation is a gradual process – businesses must slowly digitize their systems, abandon paper and manual dependencies, and then pave the way for more futuristic solutions like blockchain-based mortgage or fully AI-powered mortgage services. By skipping the first steps, businesses risk taking on technical debt and ending up with a “clunky” IT environment in the long term. Look for a partner who can strengthen and digitize core processes first.

Finally, remember to:

  • Assess partners certified for operating in your region, with a local presence.
  • Evaluate the company’s artificial intelligence capabilities to futureproof the automations.
  • Find an intersection between industry and technology, so that automation serves business processes, not the other way around.
  • Maintain transparency through web-based tools, even as the automation partner remotely monitors and manages operations.

At Nexval, we understand the role automation plays in your business journey. The tips and action points we discussed will help you select a partner who can support you in your automation goals, without adding disproportionate costs or complexity. Talk to our Tech Gurus to know more.

Subhankar Saha

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