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Leveraging AI to Streamline Mortgage Industry Protocols

Paul BrachtBy: Paul Bracht


The real estate and mortgage industries have seen record sales and profits in recent years, particularly 2020 and 2021. These years boasted historically low mortgage interest rates, sparking a flurry of transactions that pushed the mortgage industry to seek new strategies to serve client demand better. The record sales of properties also resulted in a reduced inventory of single-family homes, recently prompting government action to address increased trends of corporate investors purchasing residential properties.

Dedicated software developers play a critical role in transforming the mortgage and real estate industries as they continue reevaluating processes to respond to the unprecedented boom in residential property sales. Tech resources have helped optimize these respective industries, and skilled software specialists have augmented Artificial Intelligence to further assist the mortgage and real estate industries in streamlining protocols and efficiently responding to historically high sales volume within the residential housing market.

Industry Responses to Surging Demand

The global pandemic taxed several industries and forced many businesses to permanently close their doors but the unprecedented demand for real estate was something unforeseen by industry experts. Historically low mortgage rates sparked buyer frenzy, enabling first time home buyers the ability to purchase properties with affordable mortgage terms. Statista reported over 6 million home sale transactions were completed in 2021, the highest observed since 2006.

Software experts designed and implemented customized, real estate CRM platforms to assist realtors and mortgage brokers with streamlining lead generation and facilitating personalized relationships with clients and banking institutions. Positive relationships with clients can enable a realtor to redirect a client’s efforts to complete the home buying process and work to mitigate costly bidding wars that impede property closings.

Adept software developers were utilized by major lenders to streamline loan application protocols, an often lengthy process requiring extensive document processing, interviewing, and interfacing with employers and banking institutions. Software programs designed to expedite the process by quickly and accurately analyzing pertinent documents at greater volumes allow mortgage officers to efficiently complete the application process and even reprioritize tasks to focus on facilitating positive relationships with new clients seeking insight into the extensive processes involved with purchasing a home.

Powerful New Resources Aid Lenders and Realtors

Artificial Intelligence continues its upward trend, with several industries adopting its limitless potential to optimize operations. Deployed within the mortgage industry, we see AI features such as predictive analysis as an innovative resource to provide lenders with nuanced data to make informed decisions and to proactively anticipate market changes, price reductions, loan rate changes, communities featuring more competitive buyers, and other customer trends.

Mortgage defaults always pose a risk to lenders and clients. The Mortgage Bankers Association reported a 3.96 percent increase in U.S. mortgage delinquency rates, proving despite the surge in housing transactions, lenders still face challenges. AI optimized by software specialists enables comprehensive risk assessment tools that facilitate deep analysis of loan applications to mitigate fraud and improve underwriting processes, ensuring best practices to avoid costly defaults.

Automated underwriting utilizes Machine Learning , a subset of AI, to reduce costs associated with manual underwriting and expedite the completion of the loan process. By expertly analyzing a client’s financial information and studying the valuation of the proposed property, the system determines application approval. This process is more streamlined than traditional, manual underwriting.

Additionally, mortgage personnel can process multiple applications promptly, allowing them to redirect priorities and reduce efforts spent on boilerplate tasks such as data entry. Manual underwriting can hinder a lengthy home purchase process, requiring multiple branch visits that ultimately delay the purchase cycle.

Realtors have embraced AI to optimize multiple listing platforms to gain valuable insights into market trends and buyer preferences. Dedicated software specialists have augmented Multiple Listings Services (MLS) platforms utilizing Natural Language Processing (NLP) algorithms to extract pertinent information from several real estate listings. Paired with AI, the platform proactively identifies buyer trends, forecasts property sale prices, and compiles datasets for detailed reports for real estate professionals seeking to distinguish themselves within competitive markets.

Leveraging AI for Unique Market Insights

Artificial Intelligence provides new resources for real estate personnel, lenders, and even government officials to analyze market conditions better and reevaluate protocols, an invaluable resource to the real estate industry and government officials seeking to address continued issues associated with the unprecedented housing market boom.

Realtors implementing AI-based resources gain invaluable market insights, enabling unprecedented access to dataset reports that can accurately forecast property price trends, client preferences, and detailed community information for prospective buyers to make more informed decisions.

Lenders utilizing AI can streamline mortgage application processes and deploy nuanced risk assessment programs enhanced by skilled software developers to determine accurately if a prospective client is at high risk for default. These optimized platforms mitigate costly mortgage defaults and expedite mortgage loan processes, enabling personnel to redirect priorities and facilitate increased client satisfaction. Manual input of underwriting data can hamper property closing deadlines, and human error can often have disastrous impacts on buyers, sellers, and lenders. AI-based resources can automate underwriting, ensuring a seamless process.

Leveraging AI within the mortgage and real estate industries enables personnel to gain unique market insights, with goals of streamlining operations and seamlessly adapting to evolving trends. The technology’s unique ability to carefully analyze large datasets may highlight overlooked trends that lenders and officials can apply to enhance decision-making.


Chetu, Inc. does not affect the opinion of this article. Any mention of specific names for software, companies or individuals does not constitute an endorsement from either party unless otherwise specified. All case studies and blogs are written with the full cooperation, knowledge and participation of the individuals mentioned. This blog should not be construed as legal advice.

Chetu was incorporated in 2000 and is headquartered in Florida. We deliver World-Class Software Development Solutions serving entrepreneurs to Fortune 500 clients. Our services include process and systems design, package implementation, custom development, business intelligence and reporting, systems integration, as well as testing, maintenance and support. Chetu's expertise spans across the entire IT spectrum.

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