Imagine Solutions Blog

How Intelligent Capture Streamlines Mortgage Processing for Servicers

Oct 24, 2018 by Greg Thomas

imagine-solutions-blog-header-How Intelligent Capture Streamlines Mortgage Processing for Servicers

The mortgage industry has long suffered from its existence as a highly paper-based industry, a reality that sucks enormous resources to dig through thousands — and sometimes millions — of documents for important information. The largely unstructured format of these mortgage documents, not to mention the lack of organizational consistency, hemorrhages hours in tedious manual review.

Given these challenges, Intelligent Capture technology is a disruptor in an industry desperate for streamlining. Since the financial crisis of 2008, a rise in mortgage demand and higher compliance standards have put considerable pressure on both servicers and originators to improve their business processes and efficiency. Intelligent Capture solves servicers’ pains by leveraging advancements in Artificial Intelligence (AI) to not only classify and extract information, but lower regulatory risks and completely transform the process of analyzing documents.

For mortgage servicers, or really anyone that processes lots of documents, we break down what Intelligent Capture could mean for the state of your business.

Meeting the Complexities of Mortgage Documentation Head-On

If you’ve been wondering where this technology has been in your life, the complexity of the challenge is the main obstacle. The varied types of documents required for processing are numerous. Meanwhile, the format and state they arrive in are not only unstructured, but often inconsistent. Only a sophisticated system could possibly analyze batches of thousands of documents at a given time, meet compliance and security requirements, while also giving mortgage servicers all the necessary information they need.

Consider all the documents that must first be identified in any given mortgage:

  • Loan applications
  • Appraisal reports
  • Offers to purchase
  • Liens
  • Verification of Deposit
  • Verification of Employment
  • Deeds
  • Inspection Reports
  • Etc.

Some of the documents will be typed, some will be handwritten, and many will contain signatures, barcodes, or other images. All of these must be identified correctly so information can be extracted accurately. Anomalies, such as missing documents, information or signatures, must be recognized.

Instead of having people review the documents page by page, which is an inefficient and error-prone process, Intelligent Capture will recognize patterns and consistencies among the different document types in order to properly identify them, extract information and index the documents. The system then uses workflow technology to relay that all required documents for a file are present. It tracks whether all the necessary information is included, notifies of duplicates and calls out any essential information that might be of interest to a mortgage servicer.

Understanding and Optimization — Where AI and Intelligent Capture Shine

Intelligent Capture will analyze thousands of documents at any given time through electronic submission or from scanned images. From there, documents will be identified, sorted, and analyzed. While the ability to sort through and extract information in bulk from electronic documentation isn’t new, Intelligent Capture brings much more to the table.

In mortgage documentation, much of the most essential information isn’t in a structured format. The information might be in a letter or an email, which will almost never be consistently formatted.

In response to this problem, intelligent capture applies AI to lock onto important patterns and keywords. Even in the most complex cases, such as a Trust Account Opening with lots of documents to identify, Intelligent Capture can take a hodgepodge of drivers licenses, death certificates, wills, and trusts, and extract all the necessary information from these documents. This potentially saves hundreds of human hours for sorting, manual review and indexing.

All the more useful, Intelligent Capture can be optimized by adding robotic process automation (RPA) software bots to speed up the execution of repetitive tasks. And workflows can be created for business processes unique to your company, which improves efficiency and productivity across the board.

Reaping the Rewards of Revamping Business Processes

Through business process optimization via Intelligent Capture, mortgage servicers stand to benefit in several ways.

  • Streamlining document processing will reduce loan operations staff.
  • As a result of the elimination of tedious and repetitive tasks, employee satisfaction improves dramatically.
  • Since documentation will largely be processed through Intelligent Capture, training time for operations staff can be significantly reduced.
  • Given the accuracy of Intelligent Capture and a reduction of the chance for human error, there is an immediate improvement in meeting compliance standards.

Technology that can finally streamline all mortgage document processing is here. It can and will make a huge impact on your business, but the time to act is now. As more servicers realize the potential of this technology, they will begin to edge out their competitors still clinging to traditional methods.

Intelligent Capture is affecting the industry as we speak. You won’t want to be a late adopter in this shift.

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