Skip to main content

5 Mortgage Processes Credit Unions Should Automate Today

Credit unions, like all mortgage lenders, are under pressure to meet member expectations for fast, secure and convenient digital experiences across the board. Credit unions must meet and exceed their members’ demands to remain competitive. And to do that, credit unions need to automate the lending process. To help credit unions on their automation journeys, here are five mortgage processes they should automate now:

1. Appraisals

Typically, appraisals are among the longest, most expensive and most essential pieces of the mortgage process. Automating appraisals offers benefits to both credit unions and their members. For example, credit unions can use data analysis tools to analyze such factors as comparable home sales to determine home valuations in seconds, saving their members the cost of hiring appraisers. Automating the appraisal also accelerates the mortgage process, as members don’t have to wait weeks for their credit unions to receive their appraisals.

2. Cross-Selling

As competition for new members is heightened from traditional and non-traditional financial institutions, integrating cross-selling products has become advantageous for creating revenue and increasing member retention. Credit unions are more likely to know their membership base, and there has never been a better time to leverage this knowledge to deepen existing relationships.

Debt optimization is an example of an automated process a credit union can tap into prior to a mortgage loan closing. This automation analyzes a member’s financial data to determine if there is existing consumer debt that can be consolidated or refinanced within the credit union, allowing the possibility of a lower mortgage loan rate or better loan.

While this option may not benefit everyone applying for a mortgage loan with the credit union, there is still an opportunity to cross-sell during the post-closing process. Through the click of a button in the mortgage loan origination system (LOS), the member’s information is automatically populated into the consumer LOS to promote other consumer lending products such as credit cards, pre-qualified auto loans and personal loans.

Collaboration is only possible if credit unions implement automation technology that enables integrated operations. With automation, credit unions can work together across product lines to provide their members with more efficient, top-notch homebuying experiences.

3. Disclosures

Delivering accurate disclosures to borrowers at the right time is a critical part of the homebuying process. As such, credit unions depend on their loan officers to get the closing documents ready and send them to their members. However, relying on humans to complete this step in the process can often result in errors. For instance, credit unions pay the price if their loan officers underestimate or overestimate any of the fees associated with the loans.

Credit unions that automate the disclosure process can send accurate disclosures to their members almost immediately.

4. Document Collection

It takes borrowers a lot of time and effort to manually collect and send the necessary paper documents to their credit unions. From there, credit unions have to deal with the time and effort it takes to manually review the documents their members submit. This takes credit union employees away from their core jobs and increases the loan processing time.

Automating the process of collecting all the necessary mortgage documents helps credit unions cut costs and stay competitive. Automated document collection systems enable credit unions to set up customer portals to process, track, share and collect required documents.

Automation lets credit unions more easily approve documents and allows their members and loan officers to view the status of the applications and quickly approve or revise document requests. Additionally, automation helps credit unions comply with federal, state and industry regulations by providing standardized templates for communication, automated file management and eliminating the need to send sensitive member documents via email.

5. Loan Validation

Data-driven decision-making holds the key for credit unions that want to improve operations and better serve their members. However, manually collecting financial data and other mandatory member data, including government monitoring information, is labor-intensive, time-consuming and challenging to complete. What’s more, the greater the volume of data that credit union employees must enter and re-enter, the greater the risk of introducing transcription errors.

Credit unions can alleviate the delays and inconsistencies associated with manually collecting financial and other mandatory member data by automating data collection. And after they receive this data, credit unions can also create business rules that can automate the next steps in the process.

Ensuring the Right Tech Stack

A key component of automation is ensuring a credit union has the right technology stack in place to support these processes, most importantly a configurable LOS with an intelligent, open application programming interface (API) enabling integrated solutions.

For the processes mentioned, an API-enabled LOS will allow third-party vendors to integrate and assist in providing a point-of-sale platform, optical character recognition and robotic process automation amongst other components.

Automating processes that are repetitive, high volume and require little interaction from employees allows these workers to focus on improving member interactions and developing and using innovative technologies, which in turn drives increased approval rates, grows revenue opportunities and empowers credit unions to create lifelong financial management relationships to support a member’s entire financial journey.

Ian Goldsmith Ian Goldsmith

Ian Goldsmith is SVP of product at MeridianLink, a Costa Mesa, Calif.-based provider of loan origination systems for financial institutions.

Comments

Popular posts from this blog

Digital Payments Lead the Way Globally: Key Insights from Worldpay Study

According to a recent Worldpay study, digital payments are rapidly becoming the preferred choice worldwide. The research highlights significant shifts in consumer behavior and payment preferences, driven by technological advancements and the growing acceptance of cashless transactions. Key findings from the study reveal that digital payments now account for a substantial portion of global transactions. Mobile wallets, contactless payments, and online banking are gaining traction, reflecting consumers' desire for convenience and speed. This trend is especially prominent in regions like Asia Pacific, where mobile payment adoption is leading the charge. The study also emphasizes the importance of security in fostering consumer trust in digital payments. As fraud concerns continue to rise, businesses must prioritize robust security measures to protect customer information and enhance the payment experience. Moreover, the transition to digital payments is not just about c...

NCOFCU - "Video Mini's" The Federal Reserve

The Federal Reserve, often referred to as the Fed, is the central banking system of the United States. Established in 1913 by the Federal Reserve Act, the Federal Reserve serves several crucial functions in the U.S. economy. Here are the main aspects of the Federal Reserve:  Visit NCOFCU's YouTube channel for more. "Video Mini's" The NCOFCU "Video Minis" are a series of concise 2-3 minute video presentations designed to deliver valuable insights and knowledge on key topics relevant to credit unions. Each video focuses on a specific subject, providing viewers with essential information in a brief and engaging format. These mini-presentations cover a range of subjects. Perfect for busy professionals seeking quick yet impactful content, the Video Minis make it easy to stay informed and enhance your credit union's operations and member services. Join us in exploring these informative and dynamic learning opportunities!

Fixed-Rate 30-Year Mortgage Decreases

MCLEAN, Va.--The 30-year fixed-rate mortgage averaged 6.65% this week, a slight decrease from last week's 6.6, Freddie mac reported. “The 30-year fixed-rate mortgage ticked down by two basis points this week,” said Sam Khater, Freddie Mac’s chief economist. “Recent mortgage rate stability continues to benefit potential buyers this spring, as reflected in the uptick in purchase applications.” Freddie Mac noted: The  30-year FRM  averaged 6.65% as of March 27, 2025, down from last week when it averaged 6.67%. A year ago at this time, the 30-year FRM averaged 6.79%. The  15-year FRM  averaged 5.89%, up from last week when it averaged 5.83%. A year ago at this time, the 15-year FRM averaged 6.11%.

The Role of the Board Chair

Tim Harrington, CPA   CEO, TEAM Resources The Role of the Board Chair Recently I had the chance to spend some time with a great group of board members . One of the things we talked about was the role of the board chair. I thought this well worth putting down on *paper* as it were. The role of the chairperson is multi-faceted, complex, and often changing within the context of the organization’s dynamic. Unfortunately, there’s no perfect set of “rules.” But there are some guidelines. Here are our “tips” on navigating the position successfully: Roles Facilitator  – The board chair must draw together the individual directors into a team, working together on behalf of the membership and the credit union. To do that, s/he must wrangle individual personalities, draw out conversation from some, and rein it in from others. Having a solid understanding of the personalities of each director … and the CEO helps the chair keep things on track, moving forward, and civil. ...

President Trump is leading the way toward reduced check usage by phasing out paper checks for government payments.

WASHINGTON—A new  executive order  from President Donald Trump bans paper checks as a form of payment for the federal government. The order was signed noting that Treasury checks are often reported stolen, and face other issues. The order also notes that payments made  to  the federal government are also modernizing. “Check fraud is a perennial concern for the banking industry, growing in recent years – reports doubled from 2021 to 2022. Target stores announced last year that they would stop accepting paper checks,” the Independent Community Bankers of America pointed out. “It's a great sign that the government is leading the way toward reduced check usage by phasing out paper checks for government payments,” said ICBA payments expert Scott Anchin, noting that consumers and financial institutions should maintain the ability to determine appropriate payment mechanisms for specific cases.  ABA President and CEO Rob Nichols said his organization welcomes President ...