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Streamlining Mortgage Processing using Intelligent Document Processing

Updated: Jul 3

According to a Freddie Mac report, the US home purchase mortgage originations are expected to grow to 2.2 million dollars in 2023. With the market devoted to mortgage loans multiplying so fast, loan applications will surge.

As a result, the traditional way of loan processing will be ineffective in handling large volumes of loan applications. With so much documentation, the task will become painstakingly tricky for lenders to check and validate data without committing any error.

The overall delay on the part of lenders will further delay the approval process. Therefore, to eliminate all this hassle, automating the loan processing with IDP is essential.

IDP, or Intelligent Document Processing, speeds up credit rating determinations by controlling the flow of information throughout the process. It further lowers the documentation errors prevalent in traditional loan processing methods.

Now that you know the basics, let us delve deeper into the challenges of traditional methods and see how Piazza Consulting Group's vast expertise in IDP can help you.

Challenges of Traditional Mortgage Processing

For most lenders manually going through loan applications, the entire process is like a hurdle race. While they cross one hurdle, they come face to face with another.

Below are the three most difficult hurdles that lenders face while processing loan applications manually:

  1. Reducing Turnaround Time

Even though the entire loan processing process is complicated, the end user always demands speedy results. Thus, lenders must be quick in ensuring that loan applications are within the compliance framework. But completing the entire process manually is far more challenging than anybody can imagine.

  1. Finding Competent Resources

At the onboarding stage of the mortgage, the lenders must assess the borrower's finances before moving further. This process is called the pre-underwriting stage in loan processing.

To conduct it smoothly, lenders must find experienced professionals who can effectively execute the process. Otherwise, the loan file may be rejected if the forms are not properly completed or the titles and papers are not adequately examined.

  1. Minimizing Human Error

Assuming that the consumer completes an application and satisfies all requirements in the pre-underwriting process, the next challenge is to overcome data management issues.

From entering information into the banking system to uploading information from the supporting documents, each stage gives rise to the possibility of committing errors when entering data manually.

With each cumbersome step in the loan process, the approval lingers. It is why AI-based document processing technologies like IDP have come to rise.

They can dramatically shorten the entire cycle time for loan processing by categorizing, extracting, and validating data from loan papers. Consequently, lenders may swiftly and accurately accept or refuse loan applications without wasting time.

All-in-all, it can lead to a considerable increase in throughput and loans handled, resulting in significant financial benefits for lenders.

The Rise Of Intelligent Document Processing

With a projected 175 trillion gigabytes of data to be maintained globally by 2025, businesses will need a simplified approach to manage physical and digital data records. It is where IDP becomes crucial in today's time.

IDP is a game-changer for the finance business, especially the mortgage sector, with its end-to-end document processing, validation, and extraction advantages.

By implementing IDP in your loan processing, you can accelerate document processing, improve data accuracy, and reduce the overall timeline of loan processing and approval.

Moreover, you can quickly capture application forms and extract the data required for mortgage pre-processing tasks.

Overall, streamlining loan processing through IDP can offer big-time cost advantages to lenders in a world where mortgage compliance regulations are growing tighter.

To sum it up for you, mortgage lenders will benefit in the following ways from IDP:

· Faster time to process the applications.

· Better use of staff time.

· No errors and zero manual intervention.

· Manage unstructured data.

· Reduced time and cost in operations.

So, it is time to uncover how IDP can transform your lending business if you want to gain a superior edge over your competitor.

And what better than Piazza Consulting Group to take you to the next level?

How Can Piazza Consulting Group's IDP Solution Transform the Mortgage Cycle?

Piazza Consulting Group’s (PCG) considerable expertise in Intelligent Document Processing has helped innumerable customers with their digital transformation journey.

Let us understand how we have helped clients with one real-life example. For a private lender in New Jersey, PCG advised and installed Kofax Total Agility (KTA) for Intelligent Document Processing.

Advantages of KTA:

  • KTA is designed to be used by citizen developers. It has a user-friendly UI with self-explanatory built-in functionalities. It reduces the need to hire professionals or third-party implementation experts.

  • KTA’s Scan and Virtual Rescan profile reduces the document prep time by evaluating each page and automatically applying the correct image quality settings. Moreover, you can scan color and black-and-white photos without sorting.

  • We can attain 95% classification assurance, implying that 95 out of 100 pages can be identified correctly.

  • Separating all the necessary tax and supporting documents based on Business name and Financial year can be time-consuming. But we can accomplish it in minutes with IDPs Trainable Document Separation and Instruction Classification.

  • The extraction confidence can be set at 90%. The value extraction from separated forms can be automated using trainable extraction groups that use Advanced Zone Validators and content-based script locators. Usually, extracting from the separated forms and storing them can take some hours, but with this, it can be reduced to minutes.

  • KTA offers industry-leading Business Process Management capacities wherein user-profiles and Groups can be made with explicit access authorizations to ensure security and compliance.

As a result, PCG optimized the mortgage processing by utilizing Robotic Process Automation and Intelligent Document Processing for mortgage processing services.

Wrapping It Up

To achieve better collaboration between lenders, borrowers, and all the parties involved in the loan processing, automating the entire loan process through IDP is necessary.

So, switch from manual loan processing processes to IDP with Piazza Consulting Group. With our cutting-edge technology, you get the solutions for your organization's software and development demands in one place.

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