Big Data Analytics Ready To Play a Bigger Role in Loan Underwriting!

Applying big data to mortgage industry – Automating Loan Underwriting

The commercial real estate lending market continues to keep growing in the U.S. It has a lot of competition, which has created a robust environment. The market has become highly information-centric and in such a scenario, ‘data’ is very crucial. Be it any level, (origination, underwriting, fulfillment, servicing, modifications, closures) data now has to be maintained for longer periods. With data growing voluminously, ‘Big Data’ can aid brokers, lenders as well as borrowers to predict the future values of any type of real estate. The data will help in making smarter and right decisions as advanced techniques will help in understanding where markets are heading.

With traditional systems, more than 80% of industries time is utilized in data entry. With the support of big data, valuation becomes many times faster than it is possible with traditional systems. Underwriting for an example is one of the imperative parts of the entire mortgage process. Poor or careless underwriting has resulted in substantial losses. Whenever there has been a crisis, one among the many reasons have been exceptions to underwriting policies, lack of due diligence in underwriting, loosened underwriting standards, etc. The advent of big data and analytics have changed the game for loan underwriting. A shift from traditional methods to systems that use machine learning and algorithmic approach will lead to automated loan underwriting.

Big Data and Loan Underwriting

Big data can address all the discrepancies that arise due to the heavy dependence on paperwork between the lender, broker, and borrower. When a broker opts for automated loan underwriting, big data analytics collates the required information from different documents and within no time creates a detailed loan package. It can be instantly shared with lenders as well as the borrower. With everything happening in a fraction of a minute, the broker can deliver loan packages before the competitor does. Machine intelligence can perform huge volumes of complex calculations and deliver reports instantly. The redundant data entry and manual errors get eliminated; reducing the processing time and errors. So the brokers can do their job with speed and accuracy and take huge leaps in efficiency as loan writing will become instant. The best part is that to pull insights from big data, all you need is internet connectivity!

Real Estate & Technology

Real Estate is finally embracing technology. Big data helps in analyzing large chunks of data. The fast-paced world of real estate can make huge profits using big data analytics. Real Estate data combined with big data can elevate the decision-making process. Big data can simplify the life of broker, lender as well as the borrower. By gaining a deeper understanding of the key financial information, brokers and lenders can be more confident and can aggressively take the deal ahead. Borrowers can perform the instant online valuation of their property and get better quotes and terms.

Thus, like we said in the beginning, the mortgage industry is becoming data-rich. Big Data analytics can help real estate professionals stay on top of the latest trends. With technologies like machine learning, big data becoming a part of the real estate and mortgage processes; real estate is heading towards informed decisions and strategic action. Big data insights and its impact combined with human expertise is a very influential combination. Embrace big data technology and automate the way to underwrite real estate deals.


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