Mortgage Automation System
An All-Around Overview
ScienceSoft combines 17 years of experience in banking and financial software development with deep practical knowledge of the lending and real estate domains to help mortgage lenders design and build effective mortgage automation solutions.
Mortgage Automation Software in a Nutshell
Mortgage automation helps digitally transform manual, paper-intensive mortgage processes to accelerate the mortgage loan cycle and free up the teams for high-value, strategic tasks.
Mortgage automation systems enable automated generation and processing of mortgage documents and facilitate document exchange between the parties involved in a mortgage deal. They provide end-to-end traceability of transactions and help maintain compliance with the latest legal regulations.
A mortgage automation solution can also provide advanced analytics to ensure accurate mortgage-related decision-making and prevent mortgage fraud.
Such software enables automated processing of various types of mortgage loans:
- Residential and commercial mortgages.
- Fixed-rate and adjustable-rate mortgages.
- Private and institutional mortgages.
- Forward and reverse mortgages.
- Conventional mortgages, including high-balance loans and jumbo loans.
- Government-backed (e.g., FHA, VA, USDA) mortgage loans.
- Interest-only mortgages.
- Construction loans, and more.
Main integrations: CRM, accounting software, a treasury management system, a BI solution, and more.
Implementation time: 10–15+ months for a custom mortgage automation system.
Development costs: $400K–$2M+, depending on the solution’s complexity.
Annual ROI: Up to 840%.
Key Features of a Mortgage Automation System
In mortgage automation projects, ScienceSoft creates software with unique functionality bound to the specific needs of each mortgage lender. Below, we share a list of features that form the core of a mortgage processing system and help automate up to 90% of mortgage-related activities.
|
|
|
ScienceSoft’s best practice: Built-in customer portal functionality is optional for a mortgage processing system. However, this module can help facilitate borrower onboarding and ensure a fast and smooth lead-to-close cycle with minimal manual efforts. If you already have a customer portal, ScienceSoft can integrate it with mortgage software. If not, we can power your mortgage automation system with borrower self-service capabilities. |
|
|
- For accurate borrower risk scoring and automated input of up-to-date borrower information when generating mortgage documents.
- For data-driven planning of mortgage product promotions and consistent communication with borrowers.
Credit rating platforms
of the selected credit rating bureaus (e.g., Experian, TransUnion, Equifax)
- For facilitated assessment of borrower creditworthiness and prompt submission of mortgage reports.
Mortgage insurance systems
of the selected mortgage insurance providers (e.g., Arch MI, National MI, Enact)
- For data-driven modeling of mortgage amortization scenarios and automated calculation of mortgage insurance fees for borrowers.
Land registration system
of a local property registration authority
- To simplify and speed up the registration of deeds and transfer of title.
- For instant processing and real-time tracking of mortgage repayments.
- For accurate recording of mortgage-related transactions in the general ledger.
The mortgage company’s bank accounts
- To timely make payments on mortgage-related transactions.
- For facilitated reconciliation of mortgage payments.
When used by banks, a mortgage automation system can be integrated directly with a core banking system.
- To plan the optimal hedging strategies for the mortgage loan portfolio.
- To initiate mortgage loan purchasing and selling.
Mortgage loan trading platform
- For seamless mortgage loan trading process.
- For comprehensive mortgage analytics and advanced mortgage data visualization.
Maximized automation
To eliminate time-consuming and error-prone manual efforts across the entire mortgage loan cycle.
Legal compliance
To ensure automated mortgage processing in accordance with global and country-specific regulations.
AI-powered engine
To get an accurate assessment of borrower credit risks and intelligent recommendations on the optimal mortgage terms for each client.
Smooth integration with the required systems
To provide a seamless flow of mortgage-related data among the lender’s teams, borrowers, and external partners and avoid double data entry.
Make sure your mortgage automation system provides scalability to smoothly process an increasing amount of mortgage applications and high-volume close documents to support your business growth.
Pricing and ROI of a Mortgage Automation System
The costs and timelines of implementing custom mortgage automation software vary greatly depending on:
- The scope and complexity of a solution’s functional capabilities, including AI-based features.
- The number and complexity of integrations.
- Non-functional requirements, including security and compliance requirements.
- The volume and complexity of data to be migrated from spreadsheets or an existing mortgage processing system.
- The sourcing model (full outsourcing, partial outsourcing, or all in-house), team composition, tech stack, etc.
|
|
|
From ScienceSoft’s experience, a custom mortgage automation solution of average complexity costs around $400,000–$1,500,000. Large financial institutions looking to build a complex mortgage automation system powered with advanced analytics should expect to invest $2,000,000+. Despite the substantial upfront investments, a custom mortgage automation system can bring up to 840% annual ROI for large companies. |
|
|
Off-the-Shelf Mortgage Automation Software ScienceSoft Recommends
Encompass by ICE Mortgage Technology
Best for
Banks and credit unions involved in mortgage operations.
FEATURES
- End-to-end traceability of mortgage transactions.
- Configurable multi-department closing workflows.
- AI-powered mortgage analytics.
- Pre-built mortgage report templates in Tableau, Power BI and Qlik.
- Automated mortgage loan trading in the secondary market.
- Compliance with HMDA, FHA, ECOA, and more.
- Ready-to-use APIs to integrate with popular CRM software, credit rating platforms, mortgage trading platforms, land registration systems, and more.
- A borrower self-service portal.
CAUTIONS
The software may not provide compliance with mortgage regulations of all the countries you operate in.
Mortgage Cadence Platform
Best for
Private mortgage lenders.
FEATURES
- AI-powered analysis of borrower credit risks.
- Automated processing of mortgage applications and borrower documents.
- Side-by-side comparison of mortgage pricing options for borrowers.
- Automated generation of mortgage closing documents.
- Real-time tracking of mortgage-related payments.
- Rule-based compliance checks.
- Embedded Power BI for mortgage data analysis and visualization.
- Instant messaging for mortgage teams.
CAUTIONS
The platform integration with your corporate systems may be costly and effort-consuming.
Point by Calyx
Best for
Mortgage brokers.
FEATURES
- Automated borrower pre-qualification and risk scoring.
- Template-based creation of pre-approval letters and mortgage closing documents.
- Documents e-signing.
- Real-time monitoring of the mortgage loan status (pending approval, closed, partially repaid, fully repaid, etc.).
- Customizable compliance rules.
- Pre-built integrations with 200+ partners providing credit reporting services, title verification services, insurance services, and more.
- Role-based access control.
- Seamless mobile access.
CAUTIONS
Customer portal functionality requires integration with Zip, a separately licensed Calyx’s product, which drives the solution’s TCO.
|
You need a solution to automate specific mortgage workflows, e.g., borrower credit risk scoring based on custom formulas, creating and processing mortgage documents in user-defined languages, or calculating property taxes based on country-specific tax rates. |
|
You need flexible mortgage software that is easy to evolve with new features or innovative techs when required (e.g., OCR-enabled convertion of paper mortgage documents to a digital format). |
|
You need software providing compliance with up-to-date mortgage regulations, including region-specific regulations and case-specific standards (e.g., Fannie Mae and Freddie Mac requirements for mortgage securitization). |
|
You need a highly secure solution offering advanced cybersecurity mechanisms (e.g., intelligent fraud detection). |
|
You want smooth and cost-effective integration of the mortgage automation software with your business-critical systems, including legacy tools. |
|
You’re building a blockchain mortgage system and want to leverage smart-contract-enabled automation of mortgage operations and blockchain-based traceability. |
About ScienceSoft
ScienceSoft is a global IT consulting and software development company headquartered in McKinney, Texas. We help financial services providers design and build effective solutions to innovate their mortgage-related workflows. Being ISO 9001- and ISO 27001-certified, we apply a mature quality management system and guarantee that cooperation with us does not pose any risks to our customers’ data security.