January 25, 2021

Mortgage automation: solving today’s business challenges with a proven tool

The automated valuation model (AVM) is quickly becoming commonplace within the mortgage process

Mortgage applications can take two to six weeks to complete, with some valuation surveys themselves taking two weeks from instruction. The cost for each valuation is between £150 and £1,500, usually paid by consumers.

According to the Bank of England, mortgage approvals for house purchases have increased to 97,500, which is the highest level since September 2007.

The current surge in mortgages creates the growing necessity to adopt technology, such as automation, to expedite each administrative process and maximise efficiency. Automation has always played a critical role within the mortgage industry and without it, many businesses could not operate.

The automated valuation model (AVM) is quickly becoming commonplace within the mortgage process, providing several benefits for lenders and consumers alike.

Innovation with mortgage technology

Firstly, AVMs help to reduce manual processes, even those carried out remotely like desktop valuations. As a result, they also introduce more capacity for valuations to take place. This has been critical in 2020 with the boost in demand after the first lockdown and the introduction of the stamp duty holiday.

In addition, an automated valuation at the decision in principle stage saves time for applicants by providing them with the key information upfront. This has the potential to shrink the timescale between application and completion as there is no waiting period for an in-person or desktop valuation to be carried out.

Finally, automation allows both lenders and borrowers to get valuations completed at a lower cost. Sales director at DPR, Nick Lawler, says: “Automated valuations can deliver important bottom-line benefits. What’s more, once a new technology like AVM is adopted its benefits become embedded within the business. These savings can also be passed onto consumers.”

Technology that meets the needs of providers

For technology to make a difference, it must deliver clear benefits to the businesses using it. Whether they are at the start of the origination journey or post-completion.

DPR is a leading technology supplier and part of the DPR Group. The company provides origination and servicing solutions for the financial services sector, covering mortgages, savings and loans.

In the group’s recent study, DPR Group Mortgage Insights 20/21, participants were asked what could improve the process for staff and help progress cases quicker; 77% of providers stated integrations for automated mortgage valuations.

AVM is one of the many operational tools that form part of the existing DPR Mortgage solution. It integrates with Rightmove, Landmark and Hometrack to provide valuations based on representative property data. As a result, DPR clients have benefited from these tools long before the challenges from the pandemic this year.

DPR’s Mortgage Solution can complete valuations at a number of stages, including the full mortgage application and the decision in principle stage. It also fits into the overall origination process, so valuations can be completed post application, manually by underwriters or processors after the lender has received the application.

Planning for the future of the mortgage industry

Whatever the future holds, there’s an ongoing need for innovation and new solutions.

That’s why DPR is continuing to diversify to meet the needs of the market and drive efficiency. One example is the DPR distribution hub, which securely transfers product and customer data between sourcing systems and lender systems, via APIs.

As the demands of the mortgage industry change, technology will continue to adapt to support it.

Click here to find out more about DPR’s Mortgage Solution.