$20B Mortgage Broker Simplifies Complex Workflows with GenAI

A mortgage lender with over $20B in annual loans used a custom GenAI solution from ClearObject to streamline and accelerate its loan exception process and increase accuracy across the workflow.

Many of the lender's rules and requirements were so complex that applications had to be reviewed by an internal exceptions team, drawing out the process and opening up the potential for human bias and inconsistencies. The lender serves a traditionally underserved community of borrowers.

The Problem

Home loans, especially for those with unique circumstances, can be challenging to acquire. This lender helps those with non-traditional background acquire the funds they need to purchase a home. To mitigate risk, they have developed a complex set of guidelines to supplement the government rules and regulations. This added complexity results in a number of applications being routed to a loan-exception team for investigation, increasing the length of time for approval. 

Key Challenges

This lender needed a solution that accelerated the approval process and was easy enough to implement across all of their offices. Both the borrowers and the lenders needed to have confidence in the loan decisions being made. 

This mortgage lender was facing many challenges: 

• Complex and changing eligibility requirements
  Business is always evolving, and so too are rules and regulations to mitigate risk, along with state, local and federal requirements for lending. An AI system needs to be able to take all of this into account and arrive at the right decision. 
• Large volumes of paperwork
  If you’ve ever bought a home, you understand the seemingly endless amounts of paper and data to go through. This was a challenge for human-led processes for loan approvals. 
• Seasonal variance creates a strain
  Staffing and workloads become a challenge based on the number of applications. Compounding this, when the home buying market is active, speed and accuracy become even more critical for borrowers. 
• Previous automation efforts could not handle the complexity of their workflows
  “We’ve already tried this” can crush future attempts at innovation. While prior attempts helped in many areas, they lacked the expertise needed to create a full solution. 
• High standards to “get it right”
  Living up to their promise to serve this community made accuracy, speed, and reliability important parts of their operations. 

The Solution

ClearObject began with a Discovery Workshop to fully understand the complexities of their approval process, then designed a simple proof of concept to demonstrate the power and flexibility of the GenAI models.

Once the concept was proven out, ClearObject continued their close collaboration with the lender and scaled to a custom AI solution that helped the loan team navigate complex requirements based on their unique criteria. 

The Results

The solution has eased the burden on the loan exception team and improved results across the board. The ClearObject GenAI solution is able to: 

• Interpret and align eligibility requirements to loan requests
• Streamline and accelerate the loan exception process
• Increase accuracy across the entire workflow 

ClearObject can help you solve your most challenging problems as well. Contact us to speak with one of our GenAI Experts. 

Frequently asked questions

What does the GenAI solution do?

It interprets and aligns eligibility requirements to loan requests, streamlines and accelerates the loan exception process, and increases accuracy across the workflow.

Why did loans need exception review?

To mitigate risk, the lender developed a complex set of guidelines on top of government rules and regulations, which routed many applications to a loan-exception team and lengthened approval times.

How did ClearObject build it?

ClearObject started with a Discovery Workshop to understand the approval process, built a proof of concept to show what GenAI models could do, then scaled it into a custom AI solution based on the lender's criteria.