Lenders can benefit from an enterprise content management (ECM) solution which use OCR (Optical Character Recognition) to quickly and accurately capture and file all forms of documents – including everything from applications, credit reports, legal documents, to employment verification forms. Lenders are dealing with hundreds of pages of documents. With mortgage applications now averaging more than 500 pages each the volume of documents quickly taxes the company’s resources. A medium size mortgage lender handling 50 to 150 closings per week has to file, manage and retain 25,000-75,000 pages per week.
The ability to quickly file and convert all types of mortgage documents into usable electronic documents greatly reduces this paper burden and allows mortgage bankers to better manage the information as it moves electronically throughout the organization. However the ability to manage document retention schedules, comply with audits and compile a client file quickly is even more pressing.
The biggest benefit of using an ECM system for any lender is in complying with the new Consumer Financial Protection Bureau (CFPB) servicing rules The CFPB’s rules cover a variety of areas including the management of documents and data. The rentetion schedule for mortgage documents For example, servicers must now retain records for a year after a mortgage loan has been discharged or the servicing of a loan has been transferred. Lenders must also be able to compile a “servicing file” within five days of a request.
Lenders require enterprise content management solutions that allow them to scan paper documents and import electronic documents to create virtual files that can be instantly routed throughout the company for review and securely managed. The auditing, document tracking and workflow capabilities of an enterprise content management systems allow organizations to monitor and control workflows as documents move between mortgage representatives and departments during the approval process. Faster and more efficient processes allow customers to receive their loan approvals faster and ultimately result in greater customer satisfaction.
A loan origination and servicing systems may not be enough to satisfy the security and compliance requirements of CFPB servicing rules. A robust ECM solution like docSTAR Eclipse, includes user access security, audit trails, document retention schedules, search capabilities and worfklow automation which can be integrated with your core systems to minimize risk and exposure. A flexible ECM can also be used to solve document challenges in other departments such as human resources and accounts payable. Banks, credit unions, commercial lenders, and financial aid departments.