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When we launched LoanLogics® IDEA OnDemand back in April, we knew it was a tool primed to transform loan production. This became increasingly clear, as we watched volumes shoot through the roof this summer. We saw how manpower alone could not efficiently manage the mushrooming mortgage document processing workload.
Over the last few months while talking with lenders about the problems IDEA OnDemand solves for retail, we began to hear about other mortgage channels and use cases that also have a strong need for real-time, inline doc processing. A poll* conducted in a recent LoanLogics webinar also supports this finding.
Below I share some of the detail behind those use cases and how automation can help alleviate the many pain points manual doc processing creates across our industry.
Document classification only and/or extraction of select data elements– Circumstances arise quite frequently where lenders want to review a specific data element or want a certain set of documents identified quickly.
A good example of this need came from a LoanLogics client who wanted to leverage IDEA OnDemand within their servicing channel. Their intent was to proactively mine their portfolio of borrowers for potential refi opportunities to drive more revenue, faster. Without automated data extraction, staff members would be tasked with culling through droves of borrower data to identify targets one by one. The slower the process, the slower the revenue recognition.
Real-time data governance– Data confidence across systems and documents is hard to achieve without automation checking it along the way.
With IDEA OnDemand, as documents enter a mortgage workflow, automation can check that the information required is present and prevent incomplete or inaccurate loan files from getting too far downstream, impacting loan quality and/or sale.
Document Management– No one wants to store bad information. Automated tools for doc processing ensure that the documents being loaded into a lender’s Document Management System are classified correctly and are in the right naming convention before they go into virtual storage.
Wholesale– As brokers work with borrowers, it’s very common for documents to come in at different times to the wholesaler. Often an initial submission package is sent in with a select number of documents and then a follow up package is sent with the remaining. Manual processes for managing these docs and entering data is extremely cumbersome and impacts the overall experience brokers have working with the wholesale lender and borrowers have working with their broker.
Automation helps improve the accuracy and speed of this time sensitive process.
Condition clearing in correspondent– When a correspondent investor sends STIPS/conditions back to a seller for review, the seller often needs to upload missing documents back into the investor’s communication portal. While a portal is a great tool to streamline the review process, the efficiency stops there. In most cases, someone on the investor side manually reviews these ancillary document(s) one by one and enters the new or missing data elements into the review platform. With IDEA OnDemand, that human touch and chance for error can be easily replaced by technology. Documents can automatically be ingested into the system for immediate review, resulting in faster turn times and reduced risk for investors.
Lenders have a lot to gain by considering automated doc processing. Retail loan origination has had much of the industry’s attention this year but there are certainly other use cases and channels emerging from the sidelines that stand to benefit. Their time is now.
Be sure to reach out to us about our free trail program, which allows you to try LoanLogics’ new doc processing digital assistant within your own mortgage workflow using your own data and documents.
*Results from a poll of attendees during an August 2020 LoanLogics webinar.
Our customers wrestle daily with data integrity and document classification. Speed and accuracy matter. Thank you for sharing your insights.