Independent Banker - November 2017 - 20

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IMPROVING MORTGAGE LOAN PROCESSING
THROUGH AUTOMATION
An educational Q&A with Michele Rothkin, Financial Services
Industry Marketing Specialist, Canon U.S.A., Inc.
In an age of customer expectations for fast, convenient digital solutions, the mortgage loan process remains
highly paper-based. The processing cycle can be rife with bottlenecks and the risk of costly errors. Across
the industry, executives say they must improve the customer experience and internal efficiency to be competitive,
and are seeking to shave days off cycle times.
To shed light on these challenges and possible solutions, Canon's Michele Rothkin discusses how business
process automation can help mortgage originators become more efficient.
What is the state of automation in
the industry today?
Companies are trying to cut out
manual work with the help of online
application portals they can use to upload
documents. The problem is that
when documents come in, someone
still has to look at them - information
needs to be verified. As such, the process may never be
100% automated. The key is to insert documents into an
orderly workflow that can help track the mortgage package
throughout the cycle and prompt mortgage professionals to
complete necessary tasks in a timely manner.
What are the biggest risks and pain points for originators
in the mortgage loan processing cycle?
Not surprisingly, regulatory compliance is an ongoing
concern. For example, when loan terms change, new
disclosures must be issued within strict time limits.
Documents, such as paystubs, must also be current at
the time of closing. A well-constructed automated system
can help alert staff to possible problems so they can be
addressed before they become an issue.
Reputational risk also can't be ignored. Inefficient processes
with heavy manual components can expose originators
to oversights like missing information, requiring
them to contact customers multiple times for the same
document. Originators that achieve a high level of service
by streamlining communications with borrowers can
distinguish themselves from competitors.
Many loan processing executives continue to invest in
technology and process improvements and seek to shorten
processing cycles. What is driving the activity?
Primary drivers of ongoing improvements in the loan processing
area are compliance, cost savings and customer
satisfaction. With mortgage providers having expended a
great deal of time and energy on compliance in the past few
years, they are expanding their focus to creating and maintaining
more efficient processes throughout the loan cycle.
Overall, an efficient process leads to a shorter cycle time. A
shorter cycle time helps originators close within the initial rate
lock period and avoid fees to extend rate locks. An efficient process
can also lead to a better customer experience. Satisfied
customers can lead to more referrals and fewer bad reviews.
What does the mortgage loan document process of the future
look like?
Document collection and data review involves a human element.
The game-changing challenge here is, with a process that has
to be somewhat manual, how do you organize work for a loan
processor who has a lot of critical responsibilities?
The biggest struggle for processors is remembering everything
they have to do, and that's where a well-designed automated
solution comes in. When you need to collect paystubs, the
system can remind you to call the borrower. It can flag documents
that are close to expiring and give ample time to collect
new ones. If something changes in a document, the technology
can call attention to it. The proper technology solution keeps
processors moving within a workflow to help reduce errors and
improve efficiency.
How is Canon involved in helping mortgage bankers reduce
cycle time and improve the customer experience?
Canon's service is customizable and allows an administrator
to set up a digital workflow behind the scenes. As a leader in
imaging technology, Canon has the technology, personnel and
know-how to help automate manual, paper-intensive processes.
The service helps manage tasks at each stage in the process,
from appraisals to customer follow up on income and assets.
Having these tasks structured in a workflow queue helps keep
mortgage professionals on point.
The service comes with robust data analytics that allows for
tracking throughout the process, including cycle time. It also provides
document storage, incorporating Canon's optical character
reader (OCR) - scanning and indexing - technology.
To learn more, please visit:
usa.canon.com/advancedsolutionsforfinancialservices
Copyright 2016 Canon U.S.A., Inc. Canon U.S.A. does not provide legal counsel or regulatory compliance consultancy,
including without limitation, Sarbanes-Oxley, HIPAA, GLBA, Check 21 or the USA Patriot Act. Each customer must have its
own qualified counsel determine the advisability of a particular solution as it relates to regulatory and statutory compliance.
An Advertorial Produced by SourceMedia Research

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Independent Banker - November 2017

Table of Contents for the Digital Edition of Independent Banker - November 2017