The LOS data is only as good as the data that is input by humans… and humans make mistakes.
Here’s a great article in DSNews about LOS data written by LoanLogic’s President and CEO (my boss), Brian K. Fitzpatrick. This is a pet peeve of his and one of his passions. You should read what he has to say.
In a nutshell (not that Brian’s a nut), lenders cannot rely on what is resident in their LOS. This information is prone to error and such errors can derail a loan and a company.
Think of the new HMDA rules and requirements coming soon. It’s not only a matter of reporting a whole bunch of new loan data; the information reported must be accurate. It must represent a true picture of the loan. Otherwise, it’s worthless.
CFPB will not look kindly on inaccurate, sloppy submissions. Just ask Nationstar. They were hit with the largest HMDA fine ever for inaccurate data submissions. That’s something any lender wants to avoid. How can you?
Intelligent data extraction directly from the loan documents for immediate comparison to the LOS data. This allows a lender to review all required HMDA data, as well as other important loan data used in their pre and post close QC reviews, for accuracy and completeness. This is all done prior to submitting their HMDA reports.
Intelligent Data Extraction and a robust set of rules to validate data allow immediate identification for correction of errors. It also ensures that the loan data submitted for HMDA and being used for loan closings and subsequent audits is accurate. The LOS data matches the document data. Hooray!
An ounce of detection is worth a pound of correction. (I stole that one from our VP of Marketing, and my blog editor, Gary Catrambone.)