Through automation, Mortgage Lenders leverages technology to improve operational efficiency, meet regulatory requirements while reducing error rates and costs thereby speeding up the mortgage process. Loan Origination costs per loan has risen almost three times over the past decade. But document and compliance defects continue to impede the loan process thereby increasing costs and closing time. Therefore improving Data Quality and compliance is critical to the Mortgage Banks.
These defects fall broadly into these categories:
Eligibility (Loan /Borrower)
Verifications
Credit Underwriting
Property Related
Loan package
Legal/ Regulatory
Manual processing and compliance costs have drastically reduced the underwriting productivity in terms of number of loans processed per underwriter per day.
Challenges for Mortgage Lenders in improving Data Quality and Compliance
Manual Processing of document collection and management.
Format compatibility and redundant data entry issues.
Lack of integration between data and document systems.
Erroneous data entry and obsolete data.
Manual scanning and indexing of documents.
Lack of workflow solution for process changes within the mortgage bank.
Manual QC processes and audits.
Continuous regulatory changes and rising repurchase risks.
Slower loan delivery times and increasing defect rates in data.
Technological solutions for improving Data Quality and Compliance
Data systems, document management systems, LOS and Content Management Systems must be integrated and synchronized on a real time basis.
Work flows within the mortgage banks needs to be redefined to align with automated processes.
Digital data retrieval systems using technologies like Optical Character Recognition (OCR), Intelligent Content Recognition software should be implemented to eliminate the data errors at the source.
Data validation systems must be embedded at all data entry points within the system.
Digitally store data and distribute data for processing, closing, compliance and on-boarding.
Automate QC processes or audits using loan data analytics tools across operations.
Implementing Compliance tools to track interactions and fee changes to confirm compliance and simplify auditing at every step of the process.
Implementing Intelligent Data Capture tools to extract data fields from borrower and seller closing disclosures. These data are then automatically compared with loan estimates and process statements to check for data mismatches and execute to tolerance rules to identify any data fields which are out of compliance.
Automate Uniform Closing Dataset (UCD) preparation and delivery to Fannie Mae and Freddie Mac without manual intervention.
Looking for more information on improving Data Quality and Compliance or need help in implementing the technological solutions, leave us a message.
