Is AI transforming the Trillion Dollar US Mortgage Industry?
4 min read

Is AI transforming the Trillion Dollar US Mortgage Industry?

Building your own home is one of the most desired dreams and basic necessities we humans have. And obviously, it’s an expensive dream. and expensive dreams don’t come easy.
Is AI transforming the Trillion Dollar US Mortgage Industry?

Building your own home is one of the most desired dreams and basic necessities we humans have. And obviously, it’s an expensive dream. and expensive dreams don’t come easy. It’s one of the most stressful parts of life. But once it’s completed you’re on the 7th cloud. People often say buying or building a home may be for once is an easy task, but applying for a home loan and getting it approved is the hardest part. It’s stressful for both the Mortgage lender and the person who wants the mortgage to be approved. The amount of paperwork, Thousands number of home loan applications, and a large number of assignments made it advanced processors almost difficult to wipe out manual work. And, Obviously, it has to go through multiple steps, and then wait for the final approval. Basically A whole lot of such a lengthy process and stressful experience. But here’s a twist that enhances and takes out the burden of the whole lethargic process. Well, that twist is AI- Artificial intelligence.

There’s no doubt that AI is one of the most buzzwords in this pandemic world. Everyone wants to know what exactly is “Artificial Intelligence”. How it’s changing our lives, how it’s helping various industries, and especially the Mortgage industry where paperwork is all you can see. Everyone wants to get their hands on it. Various MNCs have started to utilize the benefits of this new technology to automate their systems along with their LOS and they’re getting the best results out of it. It is clear that AI has so much potential to reduce the workload and paperwork and yet there’s still so much to explore about Artificial intelligence which is believed to change the aspect of the Mortgage industry

Ever since AI has stepped in, the mortgage industry has been benefited in many ways. Mortgage leaders see AI as a powerful tool and the U.S. mortgage industry is considered one of the largest in the world. And it is also the most welcoming country for AI. But ever since the pandemic happened plus the global financial crisis in 2007, The US mortgage market has changed drastically and, Mortgage payment relief was one of the key actions the U.S. government took in Spring 2020 to ease the burden on homeowners suffering financially due to the pandemic. There were no earning sources for many, people were losing their jobs, and Unemployment levels reached their peak. due to mass business closures, which left many homeowners out of work and struggling to make their monthly payments. However, the impact this will have on the mortgage providers is yet to be seen, as they are unlikely to have enough capital on hand to weather the storm.

Anyways Banks and several organizations are understanding the operational pressure in these critical days, hence it is seen that they are aggressively seeking innovative solutions. And AI- Artificial Intelligence is the answer to it.

AI is a game-changer in the Mortgage industry!

As more and more mortgage organizations have started investing in modern innovations and technologies, the mortgage industry is becoming paperless. It’s the first step after all. So how exactly is AI improvising the Mortgage Industry? Let’s take a look at Kapture which is also an AI tool referred to as a cloud-based self-service for enterprise-grade form extraction platforms. It uses AI-based OCR for human intense activities like automating data classification and data extraction for various industries. This AI Product handles forms and images of various formats and sizes from your png, tiff, pdf, Docx, doc, etc… So, by taking the example of AI-based product Kapture, let’s take a look at How AI benefits the Mortgage Industry.

Easy Document scanning and capture

Scanning, filtering, and finalizing the documents is often a hectic task. But With our intelligent data capture Product. mortgage-related documents like loan applications, credit reports, employment verification forms, payslips, bank statements, and affordability assessment forms are rich sources of valuable information and considered necessary documents, and they can get easily scanned and characterized in less time. But if there was no AI product like Kapture, then with manpower definitely it would have taken months to process all the documents, and loss of time and manpower is already a nightmare. In the end, the person who wants the mortgage loan gets hopeless.

Accuracy at its best!

It’s obvious that we humans do make mistakes endlessly and with one single mistake, it all goes in vain. The hard work, the time, the morale, and the energy. Impacting the whole process and hopes of the borrower and lender too. But, Kapture doesn’t have a feature to give up or make mistakes. Instead, it’s trained to give accurate results and in less time. It Makes documents easy to search, access, manage, and process Moreover Prevent fraud and meets regulatory compliance issues.

Cost reduction

Cost reduction is the most demanded feature by any organization and Automated document classification and data extraction can greatly reduce labor costs by minimizing the need for manual processing. Hence overall reducing the manpower + processing time + cost. All done by AI-based product Kapture.