Imagine dropping 1,000 slips of paper into a large bag over the course of a few months. The slips are color-coded to represent different tasks. At the end of that time, your boss asks you to identify the most recently added slip for each task from that giant pile of paper.   

What’s the most efficient way to select the right slips? How long would it take? And how can you be sure you’ve accurately chosen the right slip for each task?

Make decisions based on the right document

That’s essentially the challenge facing mortgage lenders, insurance companies, and servicers when processing loan files. These files include a wide variety of documents, including mortgage applications, disclosures, loan estimates, and credit reports. 

Each document in the file represents data submitted by applicants and financial sources from a certain point in time. And often these documents change – with people updating information or companies running new credit reports, for example. As a result, an average loan file can include 500 to 1,000 pages, including multiple versions of the same document.

To make the most accurate loan decisions, companies like yours need to be sure to evaluate the final version of each document. Using earlier versions could compromise funding decisions, create compliance issues, and increase risk. 

You really have just one chance to get this right. 

Update inefficient, costly manual processes

Unfortunately, most mortgage processing software only supports manual version identification for documents. If you’re relying on a legacy solution, you need people to manually review documents so they can select the most current versions. 

This manual task is time-consuming, requiring the attention of many knowledge workers. It’s costly and potentially error-prone.

Yet most companies lack the time to audit all of their manual version detection efforts. Instead, they typically perform quality control checks on just 10% to 20% of their files – subjecting the business to additional risk.

Overcome version-detection challenges 

To mitigate risk, process loan packages more efficiently, and add value to your version-detection efforts, consider adopting new automated verification technologies. 

These advanced solutions help you replicate human cognition using computer vision, machine learning, and artificial intelligence (AI) technologies. 

Computer vision tools help software read and understand documents. Machine learning and AI solutions teach the software to make human-like decisions while assessing documents. Together, these technologies offer you a smart system that can automate the version identification and detection process.

Improve outcomes for workers, customers, and your business

The benefits of automated version detection can be significant for companies like yours that are ready to modernize loan processing. 

The speed of advanced solutions helps you process whole loan files much faster and with less human intervention than ever before. With this huge time savings, you can accelerate loan closings – a sure way to improve customer satisfaction.

And your workers can trade in menial stare-and-compare tasks for more value-added contributions to the mortgage decision-making process.

I recently spoke with executives from a mortgage insurance firm that recently deployed automated version-detection technology. At this company, the solution has streamlined loan processing for the business and its workers. Executives anticipate that the company will be able to reallocate up to 30 internal resources to more critical functions. That’s a real measurable benefit.

Mitigate risk with better decision-making

In addition to boosting speed and efficiency, automated solutions can improve version detection accuracy. By using computer perception technology to recognize document dates and identify the most recent document, the technology can make decisions with fewer errors than human workers. 

This increased accuracy also help companies mitigate risk. I’ve seen several firms use automated version detection to review their entire loan portfolio, not just the 10% they could handle with manual processes. 

Automation is also helping firms identify potential errors, decision-making defects, and even fraud – saving time and money while supporting more comprehensive due diligence efforts. 

And isn’t that much better for your business than sorting through those giant piles of paper?

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