The Key to a Better Mortgage Experience? Digital Automation


The average home loan takes more than 30 days to close and costs banks upwards of $8,000. Just by reducing that time to close without increasing headcount, lenders can significantly increase profits. The math is simple — but is it possible?

The traditional way to increase worker productivity is through automation. Automation drove the First Industrial Revolution of the late 18th century. Technologies like the spinning jenny and the water frame automated repetitive manual tasks, considerably increasing the number of goods that each individual could produce. Automation was a no-brainer when it came to mindlessly tedious tasks.

But what about tasks that involve a great deal of human judgement? The modern equivalent is the digital automation platform. Digital automation came to intellectual work with the invention of the computer. Digital automation platforms have spread to nearly every service and knowledge-based industry, from sales to marketing to accounting. And while it took a while for this kind of automation to reach the mortgage industry, digital platforms are currently transforming the industry in ways that benefit borrowers and lenders alike.

A major cause to prolonged mortgage origination timeline is communication and gathering required paperwork. Whether it’s reminding customers to sign important documents or uploading a requirement document, the time that loan officers spend engaging in simple back-and-forth communications and managing documents is time they could be spending following up with leads or building relationships with customers. A good digital mortgage platform will automate these often-tedious activities. If one party takes an action that requires the other’s attention, the platform will automatically notify that person, and vice-versa — no email, letter or phone call required.

Another way digital mortgage platforms save time is with intuitive and guided user experience design. Compared to photo-copied forms, a well-designed digital form will take far less time to decipher and fill out, clearly directing users through the application and pointing them to pertinent items. In fact, the medium time for a customer to submit an application with Roostify is less than 30 minutes. For loan officers, eliminating the manual drudgery and error in transcribing data from written to digital form is a godsend.

Beyond productivity, another reason banks should work to shorten the loan origination process is the oft-repeated maxim, “time kills all deals.” The longer it takes for people to get their mortgage, the more anxious they may become, and the more time they have to compare offerings with your competitors. After all, buying a home is often the biggest lifetime financial decision. Applying for a mortgage can be an emotional process, and a major disappointment could result should buyers miss out on their dream home.

By shortening the mortgage lifecycle through a digital mortgage automation platform, lenders can increase loan officer productivity, ensure customer satisfaction and see more loans through to completion. Automation, by augmenting but not replacing loan officers, benefits consumers and lenders alike. In adopting a digital mortgage platform, everybody wins.


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