Reduce Loan Cycle Time to Deliver Improved Borrower Experience

By January 8, 2020

The Mortgage Lender Sentiment Survey Special Topics Report compiled and published by Fannie Mae, captured lenders’ responses on how they assess their digital transformation efforts in the business. The underlying context in doing so was to understand how digital transformational efforts are impacting the borrower experience that lenders are providing.

The report mentions how lenders are spending their time, money, and energy on enhancing the front-end consumer experience along with the back-end operational efficiency. According to the report, 36% of lenders participating in the survey believe that enhancing front-end consumer experience and improving back-end operational efficiency are equally important in today’s lending environment. And they are making significant efforts in both areas to improve the overall buying experience of its borrowers.

Their priorities while doing so are reducing cycle time, providing more user-friendly loan application platforms, and training personnel to be consultative towards their borrowers. While you may need to invest in training your personnel and signing up with loan application platforms, reducing loan cycle time is absolutely a great way to initiate your digital transformation efforts.

Using technology to reduce Loan Cycle Time

To reduce loan cycle time, a lender needs to continually analyze the redundant processes in their operational workflow and find ways to automate them. It is also possible to find a service provider company that involves itself in this process regularly. The investments in technology and talent may be significant, which may be a deterring factor for most lenders; That is why we see a trend of lenders and their service providers partnering with technology providers to integrate and expand their usability. The mortgage industry has some great technology providers such as Ellie Mae, who are continually innovating and providing newer platforms and integrations to serve lenders and their consumers better.

One such platform offered by Ellie Mae is Encompass® Digital Lending Platform that helps lenders in originating more loans, reducing time to close, and reducing origination costs. Not just that, it also allows open and extensible access to APIs and a vast partner network, which helps lenders and service providers in integrating their current platforms with Encompass®. This functionality will enable you to partner with new-age loan processing solutions that take care of your technological needs, are implementing the latest technologies such as artificial intelligence and machine learning to offer improved accuracy & faster processing times.

One such loan processing solution, VisiLoanReview(VLR) is available from Visionet. It uses AI/ML-enabled and OCR powered technology to deliver over 98% accuracy and a 30% reduction in processing time. Visionet’s VisiLoanReview (VLR) has a fully functional API based integration with Encompass®. The integration allows lenders to efficiently and securely share data between VLR and Encompass to drive quality and efficiency in the loan origination process.

Lenders using Encompass can benefit from its integration with VLR as, VLR can now directly access the borrower loan documents within Encompass. The documents can be indexed, stacked, and relevant data from these documents can be extracted for further processing in less than 4 hours right within Encompass. The entire process is automated and seamless, ensuring error-free operations. You no longer need to do unnecessary follow-ups with your BPO partners.

With the VLR – Encompass integration, lenders can now process a large volume of loan documents with a high degree of accuracy and precision. They can not only originate more loans; they can process them faster too. A combination of Encompass and VLR together can help in significantly improving the back-end operational efficiency, which in turn will enhance the borrower experience at large.

To know more about VisiLoanReview and its integration with Encompass, write to us at

Thomas Lin

Thomas Lin

Thomas is a Real estate professional with over 25 years of experience in the mortgage banking and financial services sector specializing in client relationship management, business process management and digital technology sales within the mortgage originations and servicing space. He has additional experience in default mortgage servicing and commercial portfolio/asset management. He is a strategic thinker, the performance-driven leader with broad origination and servicing experience, excellent communication skills, and experience in strategic planning.