Direct Mortgage Cuts Loan Processing Costs by 80% with our AI Agent

THE PROBLEM

Delays in Loan Processing Frustrate Borrowers and Brokers and Impact Lenders’ Revenue

During the COVID-19 housing market boom, lenders faced overwhelming demand for mortgage applications. Rising interest rates added pressure as borrowers rushed to secure better terms. 

However, Direct Mortgage Corporation (DMC) struggled to keep up due to a significant talent gap. There weren’t enough loan officers to manage the workload effectively.

The result? Lengthy loan closing times, missed lending opportunities, and dissatisfied borrowers. Closing a mortgage in the U.S. typically takes 30 to 60 days. For DMC, manual processes only worsened the delays. 

Loan officers had to sift through dozens of documents for each application, including tax forms, bank statements, and credit reports. Mislabeling issues—like pay stubs labeled as bank statements—added further complexity and slowed operations.

These inefficiencies frustrated loan officers and borrowers alike. 

Loan officers spent too much time on repetitive tasks, leaving little room for high-value work. Borrowers faced delays and uncertainty, eroding trust and satisfaction. For DMC, the operational bottlenecks led to higher costs and lost revenue opportunities.

“I've tried different people with [suitable] skillsets and several different entities. We even built our own programming team. But they could only get so far, and it took forever. (...) A 1040 tax return, for example. [It] took us about a year and a half to actually get that done.” - Jim Beech

By addressing these underlying problems, our solution aimed to streamline the mortgage lending process, improve customer satisfaction, and drive business growth.

THE SOLUTION

Streamlining Lending Operations With Straight-Through Processing

We implemented our agentic AI Platform, AgentFlow, to address DMC’s challenges. 

The platform included multiple AI agents, focusing strongly on Document AI and Decision AI. We automated the handling of dozens of document types, enabling straight-through processing for critical lending workflows.

Achieving the required accuracy required training the system on DMC’s internal documents. Many of these were unstructured and highly variable. We used in-context learning for DMC’s unique document types and requirements to handle this complexity.

• Document AI handled data classification and extraction with precision. 
• Decision AI validated the extracted data and acted on it. 
• Together, these agents automated repetitive tasks, eliminated manual data entry, and provided reliable insights. 

The result was faster loan processing, reduced errors, and improved workflow efficiency.

THE RESULTS

Our AI Agents Cut Loan Closing Time in Half

Direct Mortgage’s operations became faster, smarter, and more efficient—allowing them to meet borrower demands even during peak periods. With our tailored AI solution, DMC achieved measurable, impactful results:

• Faster time-to-approval: Automation accelerated the approval process, allowing borrowers to receive decisions up to 20 times faster than before.
• Faster loan closing time: Loan processing time dropped from 10 to just 5 weeks, enabling borrowers to secure financing more quickly.
• Enhanced borrower experience: Borrowers now receive decisions within 24 hours, with the queues dropping to zero, improving satisfaction and loyalty.
• Reduced operational burden: The administrative workload for loan officers decreased significantly, allowing them to focus on strategic opportunities.
• Cost reduction: Operational expenses per processed document decreased by an average of 80%, improving overall efficiency and profitability.
• Higher revenue potential: Faster closings allow lenders to capture the best borrowers and close more deals in less time.
• Enhanced broker experience: Cutting loan processing time also allowed brokers to offer faster, more reliable timelines to borrowers, and secure deals before they considered alternative options.

DMC is now better equipped to handle increased demand, deliver exceptional customer service, and drive growth.

“We gave [Multimodal] the most difficult form to process, a paystub. That was our test pilot. I couldn’t throw anything more difficult at them than that. And in 30 days, they had it resolved.”  Jim Beech | CEO @ Direct Mortgage Corp.

About Direct Mortgage Corp.

Direct Mortgage Corp. (DMC) is a 29-year veteran in residential mortgage lending. They wanted to streamline their lending operations through automation.

Partnering with us, they received their first working prototype in under a month.

Currently, DMC leverages Intelligent Automation using our AI Agents—Document AI and Decision AI—to automate data extraction and document classification. This enables them to serve more clients, cut costs, and boost employee satisfaction.