By Greg Council — CUToday published key tips to remaining successful in the mortgage business through contract automation by Greg Council at Parascript. Excerpt here:
Credit unions offering mortgage services are painfully aware of the regulatory mandates regarding mortgage documentation. When loans become a sizable part of the business, more staff are assigned for longer periods of time in manually-intensive processes. They must receive, verify, and process all mortgage-related documents.
Since the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, financial service providers must ensure proper documentation is collected and shared throughout the lifetime of a mortgage—regardless of what entity owns it. This means that 20 or more documents must be present and completed for a single mortgage loan.
Credit union staff often spend a significant amount of time manually checking loan packages to verify every document is present. This is made more challenging by the fact that not every document is received at the same time or in the same order. The staff must also ensure that any documents, which require initials or signatures, are properly completed. Even after all this careful, tedious effort, mistakes are made.
As a result, the same documentation is often requested multiple times during the mortgage process, which introduces delays and negatively impacts the members’ experience. At a minimum, due to risk, credit unions spend more time at increased costs to ensure any mistakes are caught and corrected.
Beyond OCR Basics: Meeting Four Essential Needs
Lots of software options exist for capturing documents and providing the basics such as indicating the presence of a particular form. However, few solutions can automatically check and re-verify form content. As a result, this effort remains a manual process. Many credit unions would benefit from being able to:
- Classify a document as a specific type of supporting document (e.g., W-2 form).
- Automatically organize captured documents that are out of order.
- Identify documents that have pages missing or pages that are out of order and re-order them.
- Locate key data and verify against loan policies, based upon the document type.