The Wilqo Way

How Mortgage Bankers Can Use ChatGPT to Organize Checklists

Written by Wilqo | Aug 29, 2024 3:06:06 PM

Mortgage bankers rely on checklists throughout their loan manufacturing process. Some lists are built into your technology (like they can be with our Production Optimization Platform), some are printed documents taped to your wall, and some are in your head.

Some checklists are meticulously managed, some are out of date (“because we’ve always done it that way”), and many are incomplete.

The Problem

Maintaining good checklists is time consuming.

Not having good checklists can lead to compliance problems, investor suspense issues, and long onboarding periods for new employees.

A Tool

ChatGPT can be a great tool to help keep your checklists on track.

Not Just Any ChatGPT

Our recommendation is to subscribe to ChatGPT Team Edition.

This version allows you to create custom GPTs while maintaining your information privacy.

Step-By-Step

1. Create a new Custom GPT

Name: Checklist Maker

Description: A tool to help us make and maintain excellent Checklists

Instructions: [copy in all of the following in blue]

Purpose: 

This ChatGPT is designed to develop detailed, specific checklists for mortgage bankers. The checklists will guide the user through each critical step of the loan manufacturing process. Each checklist must be tailored to the Loan Program (e.g., FHA, VA, Conventional) and Loan Purpose (e.g., Purchase, Refinance).

Requirements:

  1. Detailed Step-by-Step Guidance: Each checklist must outline every step of the process in detail, ensuring that the user understands what needs to be done at each stage.
  2. Handling Exceptions: The checklists must include instructions for handling common exceptions and variations that may occur during the process.
  3. Clarity and Precision: Use clear, precise language to eliminate any ambiguity. The user should be able to follow the checklist without needing additional clarification
  4. Compliance and Standards: Ensure that the checklists align with industry regulations, guidelines, and best practices for mortgage banking.
  5. Loan Program and Purpose Specificity: Tailor the checklists specifically to the Loan Program and Loan Purpose. Each checklist should be relevant and applicable to the specific scenario.
  6. Documentation and Verification: Include steps for documenting actions and verifying that all required tasks have been completed accurately.

Output Format:

  • Start with a brief overview of the Loan Program and Loan Purpose.
  • List each step in a numbered format.
  • Provide sub-steps where necessary to ensure clarity.
  • Include notes or tips for handling exceptions.
  • End with a verification checklist to ensure all tasks are completed.

Example Request:

"Please create a checklist for collecting and verifying income for all borrowers on an FHA loan for a first-time homebuyer."

Upload Files

Attach your loan program guidelines.

Attach an example of one checklist you think is excellent.

Capabilities

Check all 3 options

2. List of Checklists

Once created, your first request could be to have your new custom tool generate a list of all of the checklists you should have.

You could use a prompt like:

"Please generate a comprehensive list of all the checklists that a mortgage banker should have on hand for managing the loan manufacturing process. The list should cover various Loan Programs (e.g., FHA, VA, Conventional) and Loan Purposes (e.g., Purchase, Refinance), as well as key steps in the process, such as application review, underwriting, appraisal review, closing, and post-closing. Make sure to include any specialized checklists that might be necessary for specific scenarios or exceptions."

3. Checklists

With that list in hand, you would then generate a checklist with a prompt such as:

“Please create a checklist for a mortgage banker to follow when [checklist details]. The checklist should be detailed, ensuring accuracy, compliance with industry standards, and identification of potential red flags. Include instructions for handling exceptions, such as discrepancies in property valuation or issues with the appraiser's credentials. Use the established guidelines and format we've provided.”

Where [checklist details] would be something like: “reviewing an appraisal report for a Conventional loan purchase”

4. Review

Remember, the output won’t be perfect, but it will be a foundation that puts you dozens of hours ahead of having started from scratch. Your next step will be to have an expert on your team review and tweak each checklist to meet your specific needs.

Also, don't be afraid to play with changes to the prompt to fine-tune the output you are looking for.

5. Hint

Be sure not to fall into the trap of adding steps “because we’ve always done it that way” if they aren’t really needed.

Summary

Having comprehensive and up to date checklists is key to a mortgage lending operation’s efficiency.

Using ChatGPT as described above would be a big time saver, and doesn’t have to come from your most expensive resources.

One of the first things Wilqo asks for when implementing a lender on our Production Optimization Platform is a list of your existing checklists so that we can configure our system to support your needs. If every lender we work with had these comprehensive, consistently formatted checklists, it would streamline our implementation process.