How to Digitize the Insurance Verification Process for Mortgage Lenders

Published on
February 9, 2023
Ray Huang
Head of Marketing

Ray is the Head of Marketing at Canopy Connect and has helped dozens of startups and growth companies over his 20-year career to develop strategies and implement tactics that yield high-impact results.

Mortgage processing can be a complex process. But automating tasks such as insurance verification can be streamlined for you and your customers to make sure you close on time.

Mortgage processing can be a tedious process. Loan officers and mortgage brokers must collect several documents necessary for a successful application. A loan processor then has to go through a long checklist: insurance verification, identity check, credit history, and all the financial statements for a loan applicant.

This is one of the biggest pain points for lenders. Going back and forth with your customers over a checklist of specific items wastes a lot of time. It could potentially also make you lose customers, as it’s tedious for them too.

The insurance verification process is an especially complex task that can often confuse applicants. A typical loan can take as little as a week but often takes several weeks or months to process and underwrite. Any number of issues, such as missing signatures or an incomplete form, can significantly delay the process.

Some of these problems are unavoidable. However, you can ease out several pain points to speed up the process. One of them is simplifying your insurance verification process, which will also make things easier for your prospects.

Systematizing the Insurance Verification Process

Despite your best efforts to stay on top of things, sometimes an applicant will forget to submit the required paperwork, or they’ll submit the wrong documents. You can often expect a lot of back and forth during this process

The mortgage approval process usually presents a lot of bottlenecks, and both borrowers and lenders have to go through a mountain of paperwork.

However, the mortgage approval process need not be so tedious. In fact, it can be a perfect opportunity for your organization to enhance the customer experience and ensure their loyalty.

Most lenders keep a checklist handy to avoid unnecessary delays and make sure all steps of the process are done correctly. Many lenders opt for digital checklists of the process. It’s much faster and more transparent to follow and allows for some automation.

Automation can reduce errors in the underwriting process. It creates a detailed checklist of required steps and minimizes back-and-forth headaches such as following up through calls and emails.

Many loan origination software tools have custom workflows and checklists. However, unless the process is easy, it can still cause problems for the customers, as finding insurance documentation is not a familiar to most borrowers.

Insurance Verification Implementation

Using Canopy Connect will streamline the insurance verification process. This flexible and easy-to-use tool makes your insurance verification a breeze, and helps you avoid compliance mishaps, and ensures a great customer experience.

Mortgage lenders and loan processors can send a Canopy Connect link or easily integrate it into their portal to securely acquire a borrower’s verified insurance data.

Instead of having the borrower search for and submit their homeowner’s insurance policy declarations, by using Canopy Connect, borrowers can simply select and sign into their insurer and give permission for their data to be shared with the lenders.

Canopy Connect’s insurance API enables allows lenders to get structured insurance data, including coverages, deductibles, claims history, and more. Moreover, the API can also returns the declaration pages as a PDF document if needed.

You’ll start noticing positive changes immediately after implementing Canopy Connect for insurance verification. First, your processing time will be much faster. Loan officers and loan processors have to deal with multiple applications at the same time with documents being shared left and right. Any missteps here can cause a delay and jeopardize an on-time closing.

Borrowers want to work with lenders that not only offer the best rate but also provide a seamless experience. The right technology can expedite this crucial step in underwriting.

Simplify Your Insurance Verification Process With Canopy Connect

The loan approval process can be tough, tedious, and boring for both sides. However, there are ways to work around these challenges and ease your client’s mind by simplifying the process.

Canopy Connect helps you close home loans faster by increasing overall efficiency and automating the insurance verification process.

Book a free demo today to start your automation journey with Canopy Connect API Solutions!