The Wilqo Way

The Importance of Data in AI for Mortgage Lending: Unlocking a New World with Charlie

Written by Wilqo | Oct 10, 2024 8:50:04 PM

Data is the lifeblood of artificial intelligence (AI). In fact, for AI systems to deliver valuable insights and decisions, they need access to a robust and reliable pool of data. In mortgage lending, where every loan application involves countless pieces of information, the quality and accessibility of this data are especially critical. But it’s not just about having data; it’s about knowing how to use it to transform your operations and optimize every step of the lending process.

This is where Charlie, Wilqo’s innovative Production Optimization Platform (POP), comes into play. With Charlie, lenders can harness the power of data in a way that wasn’t possible before, opening new avenues for exploration, analysis, and operational efficiency.

Let’s take a closer look at how Charlie's approach to data transforms the way lenders manage their business, using loan statusing as a key example.

 

Moving Beyond Traditional Loan Statusing

In a typical lending environment, a loan is often categorized under a single status, such as “in underwriting” or “in processing.” This high-level view masks the what is truly happening within a loan file.

The reality is that at any given moment, there are dozens, if not hundreds, of moving parts involved in getting a loan from application to close. These parts include verifying borrower income, analyzing assets, generating disclosures, and completing required compliance checks.

A single status fails to provide the transparency lenders need to understand where delays might be occurring or where attention should be focused.

Charlie takes a more granular approach to loan management with its unique feature: Progress Items. Instead of reducing a loan to a single status, Charlie’s Progress Items allow lenders to track each component of the loan independently.

For example, you can see where the income verification stands, how far along the asset review is, or whether specific compliance checks are complete. This means that rather than wondering why a loan is still “in underwriting,” you can see which specific tasks are outstanding and adjust priorities accordingly.

 

The Power of Activities and Data Transparency

Understanding how long each action on a loan really takes is critical for lenders who want to improve their processes. Traditional loan status tracking lacks the detail to analyze bottlenecks accurately as the information is too high level.

Charlie changes this dynamic by tracking individual activities.

For instance, if the income verification is taking longer than expected, Charlie’s activity tracking can show you exactly where the delay is occurring whether it’s waiting for a borrower to upload a document or a specific verification step that needs attention.

This level of transparency allows you to drill down into the nuances of your operations. And with each activity recorded and time-stamped, you gain a precise view of the time taken for each step in the process.

This detailed activity data becomes a goldmine when handled properly. Charlie’s built-in analytics engine focuses on the factors that impact your bottom line, for example, wait times, processing time, and loan fallout.

By identifying patterns in this data, we can uncover where time is being lost and where your processes could be optimized. This enables you to reduce turnaround times, maximize your pipeline, and ensure that your resources are allocated effectively to meet your goals.

 

A New World of Data-Driven Lending

At Wilqo, we believe that the future of mortgage lending is data-driven, and Charlie is designed to help you realize that future. By focusing on detailed data collection, transparent tracking, and Machine Learning (AI), Charlie offers a whole new way to explore the complexities of loan management. Whether you’re looking to reduce costs, increase your throughput, or improve borrower satisfaction, it all starts with having the right data and knowing how to use it.

In a world where every second counts, the lenders who master their data will be the ones who thrive. With Charlie, you’re not just collecting data, you’re using it to unlock a new level of performance for your lending operations.