Why Lenders Should Consider Loan Automation

mortgage loan automation

When a borrower begins the process of shopping for a loan, whether it’s for a real estate investment or a mortgage, they want to search the Internet for a good loan. They aren’t ready to talk to a person yet.

We search for plane tickets, electronics, and cars online every day, and we expect to see prices displayed, with fully disclosed taxes, licenses, and fees. We do this using automation and without the need to talk to humans.

Phone Calls Have Their Place

That being said, it’s important for lender and borrower to speak on the phone near the beginning of the the loan process and possibly again mid-process. A phone call is important to establish trust and rapport as well as for answering questions or addressing unusual situations.

The Key

Here’s the key: those phone conversations should occur at well defined points in the loan process.

There’s no need for multiple phone calls and emails to be sent at seemingly random times throughout the loan process.

The Most Important Phone Call

The most important phone call occurs after the borrower has found attractive financing options on your website or through your mobile app. At that point, a well designed loan process schedules a phone call between the borrower and a skilled loan officer so the loan officer can take the borrower’s application and apply their industry experience to recommend the best loan option for the borrower.

Having a skilled loan officer take the application, versus having a borrower fill out a complex online application, can and does make a significant difference in the overall experience for the borrower and the efficiency of processing as well as the probability of closing the loan.

A Well Defined Loan Process

A lender with a well defined workflow is primed for automation. This gives the borrower confidence that their loan is on track for an uneventful, predictable closing.

A lender with an automated loan process enjoys significant competitive advantages:

  1. The lender has a more predictable revenue stream. Once a lead enters the system, the lenders knows the probability of that lead closing. Once the loan process begins in earnest, the lender knows how long the process will take with a far higher degree of confidence. Ultimately, loan automation becomes a predictor of future revenue.
  2. The lender also has the potential to hire staff that aren’t as highly trained in the lending process, because the automation guides the staff on appropriate next steps. If the lender has a sufficiently large staff, there is the opportunity to reduce the monthly payroll since the organization can operate more efficiently with lending automation.

The other players in the loan process also enjoy similar benefits. Real estate agents, loan brokers, appraisers, insurance brokers, and title companies feed off the lender’s loan automation and enjoy more predictable revenue and lower staff costs.

Predictable Revenue

If a lender can bring in a certain number of inbound sales leads every month, the lender who uses an automated loan process has the advantage of being able to predict the revenue those leads and the loan automation process will yield over the course of the loan (sales) cycle.

Borrower Satisfaction

An efficient, predictable, automated loan process — with human oversight at key points — makes borrowers happy because their loan is obtained with less stress. Due to the predictable nature of the process, borrowers are able to fit other plans around their closing date, knowing the chances are significantly increased for a smooth and on-time closing.

Real Estate Agent and Loan Broker Satisfaction

Finally, the people who generate your leads for you will be very satisfied with the transparency and insight that your loan automation provides them. It gives them predictable revenue.


Floify (floify.com) is a Mortgage Point-of-Sale software solution that securely collects mortgage loan documents and allows borrowers to check their loan status. It helps loan originators with the process of requesting and gathering loan documents, issuing requests for additional documents, and sending out status updates to everyone who needs them. Developers can integrate their system with Floify by using Floify’s RESTful APIs.