Every spring marks the arrival of not one, but two of America’s favorite pastimes: baseball and homebuying. And while major league teams chase the World Series, mortgage lenders and servicers are looking to win by growing their portfolios and boosting their bottom lines.
Of course, victory in an ever-changing housing market isn’t easy. But lenders and servicers have a very powerful playbook at their disposal, should they choose to use it: AI-based document automation, which works not only in springtime, but all year round.
Enhancing Origination Efficiency
For lenders looking to accelerate loan production processes, reduce costs and generate more loans, document automation offers a powerful tool to enhance their competitive edge.
By utilizing AI-based text analysis tools, lenders can extract relevant data from borrower-provided documents such as pay stubs, W-2s, bank statements and tax forms, enabling them to accelerate underwriting processes while reducing origination costs. That means less time spent manually verifying documents and more time dedicated to serving borrowers.
As loans progress through the pipeline, AI-powered document automation identifies individual loan documents and compares key data elements with your loan origination system (LOS) in milliseconds, ensuring accuracy and integrity. This saves time and minimizes errors, allowing lenders to close loans with confidence.
Lenders can also use these tools to generate custom reports and perform audits with ease. They can even automatically compare system-of-record data from different systems with extracted and calculated data from source documents and datasets and return fully traceable and auditable results. The result: improved loan file quality and enhanced fraud detection.
Streamlining Servicing Processes
For servicers, the combination of AI and loan document automation is equally valuable, starting from the minute they onboard loans.
AI-fueled document technology can vastly accelerate bulk onboarding and ingestion of loan portfolios, even for loans with inconsistently named documents and error-ridden indexing. By capturing thousands of data elements in just milliseconds, servicers can quickly establish a dependable database of record while simplifying the onboarding of thousands of loans per day.
AI document processing also streamlines loan onboarding audits. It automatically identifies final versions of key documents, extracts relevant data for due diligence and archiving, and verifies data accuracy by auditing previous servicer data against incoming documents.
AI-Cloud: A Game-Winning Strategy
If you’re looking for a powerful playbook for document processing that delivers results year-round, Paradatec has you covered. Our technologies are used by lenders and servicers of all sizes to process over 2 billion documents per year.
Our solutions are available in the cloud, too. In fact, our AI-Cloud platform provides you with access to over 850 mortgage document types out of the box. And by using machine-learning tools and pre-trained libraries, it’s capable of identifying more than 8,500 data points trapped in those documents and transforming them into actionable data.
There’s a reason why Paradatec is trusted by 3 of the 10 largest U.S. banks and 4 of the 10 largest mortgage servicers—our AI document automation simply works. To see for yourself, contact us at info@paradatec.com, and we’d be happy to set up a demo of AI-Cloud at your convenience.
