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The Next Stage In Mortgage Evolution: The Robotic Mortgage

Technology has become pervasive in the mortgage industry, with paper loan files quickly becoming a thing of the past. One of the biggest drivers in these technological advances is the desire to improve the borrower experience. Technology presents endless possibilities, and the demand for new functionality is immense. How can lenders afford to adopt new technology and keep the cost of origination down? The answer, for some, could be the Robotic Mortgage.

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“Robotics”, or Robotic Process Automation (RPA), is the newest buzzword in the mortgage business, and it is changing the way we look at automation. To put it simply, RPA is technology that replicates repeatable actions or tasks that would otherwise be completed by a human, working in a single application or across multiple systems. Furthermore, with the use of robotics, tasks that are not linked by dependencies can now be performed simultaneously.

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Robotics is not a new concept; some industries have used robotics technology for decades. For example, manufacturing companies use robotics to complete tasks such as applying a coat of paint to the shell of an automobile. By utilizing robotics, they can speed up processes to increase production while maintaining high quality, thereby reducing costs.

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Mortgage Cadence’s Loan Origination Systems (LOS), the Enterprise Lending Center, represents the progress that robotics has made within the mortgage industry. A loan file was once hand-carried to every department throughout the life of the loan, and validations were a manual task. For years now, lenders have relied on their ELC to automatically drive workflow, task their users, condition a loan, interact with their borrowers and third party vendors, and, most importantly, originate a compliant loan. Borrowers can now apply, follow the life of their loan, upload documents, see conditions, and communicate with their lender, all online. So what differentiates robotics from current LOS technologies?

There are still many repeatable tasks being completed by individuals throughout the loan origination process. Loan set-up, data entry, document comparison, and sending notifications on incomplete packages are just a few examples of items that can be further automated with robotics. Just as robotics is redefining the loan origination process, the possibilities for enhancing the LOS implementation and delivery process through robotics are numerous. For example:

>>Customized Functionality – Imagine a “drag-and drop” graphical tool that lenders can use to create rules automatically, based on the selection of chosen functionality being dropped into the tool.

>>Test Scripts – Developing a test strategy is one of the most important aspects of a successful LOS implementation. Imagine lenders being able to generate automated test scripts based on their system’s customized configuration.

>>Configuration Design Tool – Imagine if configuration could be automatically generated based on the information a lender put into a business process map.

The technology exists to make these ideas real. Lenders that want to maintain a competitive edge are finding ways to use robotics to reduce costs, increase productivity, decrease turn times, improve quality, and provide visibility. Technological innovation will continue to disrupt the mortgage industry, and the Robotic Mortgage is leading the way.

About The Author

Regina Musyl
As a Professional Services Director for Mortgage Cadence, Regina Musyl focuses on organizational improvement through building ground-floor initiatives and process improvement. She joined Mortgage Cadence in 2015 as a Strategic Engagement Manager, responsible for the end-to-end implementation and delivery of the Enterprise Lending Center platform. After advancing to Professional Services Director, Musyl undertook the development of a Client Enhancement Services program supporting clients interested in subsequent phases of implementation or specific enhancements and has since transitioned to overseeing robotics initiatives. Musyl began her career in the mortgage industry in the default sector, followed by a focus on due diligence, compliance and credit risk management. Prior to joining Mortgage Cadence, Musyl designed and built a correspondent loan platform for an independent loan originator in Denver, CO.