![]() ![]() The Infosys report also recognizes that the level of automation possible is directly correlated to the intelligence and accuracy of the OCR solution. Reduce the processing time by up to 50% and reduce the cost of quality control and human effort.In OCR terminology, this is referred to as document classification. Sort all the document versions from initial to final.Extract the relevant information from documents, validate the data and pass it on to downstream applications without any delay.This alone can save lots of downstream process time. Verify the presence or absence of all the mandatory documents.This instant validation allows the lender to quickly request any incomplete or missing information. Validate immediately the documents submitted by the borrowers and the complete loan package shared by the correspondent lender or mortgage servicer.The report cites several benefits of deploying a smart OCR solution: Infosys is recommending that mortgage lenders invest in smart OCR powered by AI/ML to mitigate these challenges and accelerate the loan onboarding process. Delays mean you risk losing your customers to competitors.Faster processing means faster capital realization for your company.If anything goes wrong at this stage, the rest of your process is affected.Īs a mortgage processor or service provider, you must provide a speedy customer experience for two fundamental business reasons: It is also an incredibly labor-intensive process prone to human and software errors. The steps involve reading the file contents, sorting and verifying the documents, and extracting data. Loan file review is the most critical stage of the loan process. Applicants also forget to file documents. Loan files often contain images that are unreadable by most systems. Poor quality source documents are the curse of every automated system. Applicants cannot be counted on to submit high-quality scanned or phone camera snapped documents. Federal agencies, states, counties and cities have different forms and regulations with an endless variety of file formats. Due to the complexity of the documents and processes involved, over 60% of the time is spent on manual operations.ĭue to the complexity of the documents and processes involved in mortgage loan processing, over 60% of the time is spent on manual operations.Ī single mortgage loan file can contain over 100 diverse loan forms and documents. As a result, any information passed on, such as the presence of a document type and its contents, must be revalidated and confirmed. This failure of standardization results in gaps between aggregators’ point of sale platforms and mortgage lender loan origination system platforms because information is not often seamlessly transferred between these systems. This is because the industry does not use a common platform shared by all the players involved in the process to avoid duplication and repetitive tasks. The shift away from paper documentation toward a complete digital loan origination is projected to take years for the mortgage industry. Trend number 5 is accelerating the mortgage loan onboarding process. In a new report, Infosys has identified the top trends for mortgage processing in the post-pandemic era. “ Without a doubt, there are too many buyers in relation to the sellers,” said Lawrence Yun, chief economist of the National Association of Realtors. And with the new vaccines rolling out across the USA in 2021, we can expect an explosion of new home purchases as the pent-up buyer demand is released, and more sellers have confidence to put their homes on the market. Historically low mortgage rates, combined with the pandemic’s ongoing pressure on household finances, are driving more borrowers to refinance their home loans. Bankrate states that “record low rates may also usher in 2021.” The crush of loan applications that swamped the mortgage industry in 2020 will not abate anytime soon, according to these recent headlines. Mortgage rates set the 14th record low of 2020, causing a surge in mortgage refinancing. ![]()
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