If you're a tech leader in the mortgage industry, you've felt the pressure. Regulators are demanding more, and your customers need faster approvals.
For you and your team, these challenges aren't abstract concerns—they're daily realities.
One area where this pressure is intense is loan origination. A loan application can take weeks to close and demands significant effort from your team.
While automation has streamlined parts of the process, human involvement remains essential. There's something about humans—contextual understanding, personalized communication—that automation has not fully replicated.
Could Hybrid Workflows drastically shorten the approval cycle and reduce your team's workload during loan origination?
Let's explore.
The Hybrid Workflow
What do we mean by a Hybrid Workflow?
A hybrid workflow blends human expertise with AI-driven automation. It creates a process where one complements the other.
GenAI is now capable of handling more complex tasks, such as making contextual decisions and reasoning through data. This shift allows your team to focus on oversight, make nuanced decisions, and handle higher-value tasks that require human insight and judgment.
Let's look at how this would work in loan document collection. Throughout the loan origination process, your team is continually collecting, verifying, and clarifying documents.
Some key interactions may include:
- Requesting initial documents
- Following up on missing documents
- Clarifying document requirements
- Requesting clearer copies
- Verifying document authenticity
- Asking for additional documents after review
- Clarifying inconsistent information
- Requesting updated documents
- Explaining document rejections
- Following up on third-party verifications
- Confirming final document collection
- Addressing final clarifications before submission
Even if only some of these steps are needed, they can easily add up to 10 hours of work.
So, what would a hybrid workflow look like in this context? Here's how it could work:
GenAI agents can start by analyzing the borrower's profile and automatically generating a customized list of required documents. The AI can also handle follow-ups with the borrower, sending reminders, and even offering guidance on what might be missing.
Throughout this process, the loan officer provides oversight, carefully reviewing the AI's findings and communications before they are acted upon.
For verifying the authenticity of submitted documents, GenAI can cross-check information with external databases, flagging any discrepancies for further review. If a document is unclear, the AI can request a clearer version, specifying exactly what needs improvement.
What could your team accomplish if they had more time to focus on the big decisions, while GenAI takes care of the routine tasks?
Designing Effective Hybrid Workflows
At Value AI Labs, we focus on four key areas when designing hybrid workflows:
- Feasibility: Can GenAI meet the accuracy needed for key tasks?
- Cost: Is the hybrid workflow more cost-effective than what you're currently using?
- User Interaction: Is the workflow easy for your team to use and understand?
- Reliability: Does the workflow consistently deliver reliable results?
By focusing on these factors, you can build workflows that effectively combine the strengths of both AI and your team.
Conclusion: The Future of Mortgage Workflows
Loan origination isn't the only area where hybrid workflows can make a difference. Think about tasks like underwriting, managing and coordinating borrower payments, compliance.
Pick one where you think it will fit in the best, see the benefits and then gradually apply these workflows to other parts of your operation.
The potential is there. The next step is up to you.