The average time to close a mortgage in the U.S. is still hovering around 30 to 45 days. In 2025. With APIs, AI, and automated underwriting in play.
Ask any operations leader why, and you’ll hear the same responses: regulations, documentation delays, third-party dependencies, and borrower response times.
But what if we told you the real bottleneck isn’t in the process—it’s in the thinking?
It’s time to challenge traditional assumptions and reimagine mortgage fulfillment through the lens of Lean Six Sigma, Straight Through Processing, and Total Quality Management.
And yes—a 10-day close is absolutely possible.
The Root Problem: Layered Inefficiencies
Most mortgage operations are riddled with legacy habits:
- Excessive handoffs
- Manual touchpoints that shouldn’t exist
- Reactive exception handling
- Over-processing to compensate for under-training
- Endless documentation “just in case”
These issues create delays that feel unavoidable—but they’re not. They’re symptoms of process bloat, not borrower needs.
The Fix: Think Like a Manufacturer
If Toyota can build a car in 18 hours, we should be able to close a loan in under 10 days. The principles behind Lean Six Sigma, Straight Through Processing, and TQM were built to eliminate waste, reduce variation, and drive consistency.
Let’s break down how these can work in mortgage.
- Lean Six Sigma: Remove What Doesn’t Add Value
Lean Six Sigma focuses on identifying and removing “non-value-added” steps (waste) and reducing process variation (defects).
Mortgage application of Lean:
- Map every step of your loan lifecycle
- Eliminate redundant documentation reviews
- Use data to track loan touches per file (and reduce them)
- Create “no-exception” workflows for clean loans
Result: Faster approvals. Less rework. More loans per FTE.
- Straight Through Processing (STP): Go Touchless Wherever Possible
STP is about automating every step of a transaction—from input to output—without human interference.
In mortgage, this could mean:
- Instant data aggregation from borrowers via secure portals
- Automated pre-underwriting using verified data
- Integrated appraisal and title APIs
- Automated conditions clearing for standard files
Result: A loan file that’s 80% complete before a human even sees it.
- Total Quality Management (TQM): Build Quality In, Don’t Inspect It In
TQM means shifting from reactive quality control to proactive quality design.
For mortgage fulfillment:
- Smart checklists and embedded controls within LOS screens
- First-time-right culture through targeted training
- Real-time quality alerts during processing or underwriting
Result: Higher borrower satisfaction, cleaner audits, and far fewer compliance concerns.
The Barriers to Change—And How to Overcome Them
We get it. Moving fast in a highly regulated industry isn’t easy. But every lender who’s broken through has had to tackle these three barriers:
- Fear of Change
“What if we break something?”
Overcome it by:
- Piloting changes in low-risk segments
- Using simulations to test workflows
- Communicating early wins to build momentum
- Siloed Operations
“That’s not my team’s responsibility.”
Overcome it by:
- Aligning around end-to-end metrics (not just team KPIs)
- Creating cross-functional pods for redesign initiatives
- Implementing workflow tools that show shared ownership
- Legacy Tech & Processes
“We’ve always done it this way.”
Overcome it by:
- Focusing on modular automation (you don’t need to rip and replace)
- Leveraging middleware to connect systems
- Involving frontline teams in redesign so adoption sticks
Change management is 80% mindset, 20% tools. Culture matters more than code.
What About the Borrowers?
That’s the best part. These methodologies don’t just speed up the process—they improve the borrower experience:
- Less waiting = less anxiety
- Fewer touchpoints = less friction
- Faster closes = happier realtors and repeat business
Speed isn’t just operational—it’s strategic.
How to Start Your 10-Day Mortgage Journey
- Map your current fulfillment process
- Identify waste and rework
- Define a STP “golden path” for standard loans
- Build in quality at the source
- Challenge every assumption
Final Thought: Fast Can Be Flawless
This isn’t about rushing. It’s about precision, intention, and design. When every step has a purpose—and no step is wasted—speed is a natural byproduct.
The 10-day mortgage isn’t a dream. It’s a decision.
