When it comes to managing mortgage data, accuracy is like a perfectly placed pitch in baseball – it sets the stage for success. Just like a single player error can cost a team the game, a data integrity issue can lead to missed opportunities, frustrated customers and investors, and even regulatory penalties.
In other words, lenders and servicers need to consistently hit home runs when it comes to data accuracy — whether it’s a single workflow or the culmination of many processes (such as investor loan delivery or servicing onboarding) that “stack the bases” and bring multiple runs across home plate. In this sense, AI document automation is not just the ultimate utility player, helping every position on the field. It also helps companies score.
The Impact of Origination Errors
Loan quality is the cornerstone of successful loan origination. But in today’s market, where regulatory scrutiny and origination costs are both at all-time highs, the stakes for loan quality have never been greater.
Traditional methods of ensuring data accuracy, such as manual reviews, are not easily scalable and are prone to errors and inefficiencies. At a per-loan level, this can impact production efficiency and customer satisfaction; and more broadly, financially impact the business with potential loan buybacks and regulatory assessments.
AI-powered document automation can help lenders streamline data extraction and validation from documents with a level of accuracy and speed exceeding human stamina, while also freeing up staff to perform more complex tasks. Using neural networks, machine learning algorithms and pre-trained models, AI can accurately identify and extract critical data points, reducing the risk of errors and ensuring data consistency.
Enhanced Servicing Precision
Ensuring data accuracy is equally important for mortgage servicers, especially when transferring mortgage servicing rights and navigating loss mitigation processes. Just like baseball teams rely on precise communication and coordination between players, servicers depend on accurate data to efficiently manage their portfolios and support the needs of borrowers, investors and regulators.
Thankfully, AI-powered document automation enables servicers to on-board loans and ingest loan portfolios efficiently and effectively. With AI assistance, servicers can perform required audits quickly and accurately, ensuring all key documents are executed properly while validating critical data. These tools help servicers maintain data integrity, minimize discrepancies, and reduce legal and financial risks associated with inaccurate data.
Taking Data Accuracy to the Next Level
At Paradatec, we understand how important it is for lenders and servicers to maintain clean and reliable data. Our industry-leading AI technology extracts data from documents and automatically compares it with data stored in your existing systems, eliminating the need for time-consuming and error-prone manual data reviews. With Paradatec, lenders and servicers can focus on just the exceptions.
For example, our AI-Cloud solution includes a pre-trained library to recognize over 850 mortgage document types and extract over 8,500 data fields. Our unique neural network-based platform harnesses machine-learning tools to quickly learn and recognize new documents and fields.
Our Analytics Module acts like your own personal umpire, automatically comparing data and highlighting inconsistencies. It flags missing documents and unusual data points, allowing you to investigate potential errors before they become bigger problems. Its flexible rules engine allows clients to augment Paradatec’s rules library with their own business rules, enabling customers to adapt the module to their unique needs.
Built on Paradatec’s award winning AI-based document classification, versioning, and data extraction capabilities, the Analytics Module seamlessly integrates data from multiple sources, automating calculations and comparisons with ease.
By making it easy to implement Paradatec, our flexible API returns results and data uses configurable triggers and translation formats into customers’ downstream systems, ensuring a smooth and efficient workflow. Paradatec is also pre-integrated into several leading systems of record in the mortgage and real estate industry.
Process automation, reliable results, and innovation driven by customer feedback. These are some of the reasons Paradatec is trusted by 3 of the 10 largest US banks, 5 of the 10 largest mortgage servicers, and multiple system and service providers.
Ready to step up to the plate and revolutionize your data game? Contact us at info@paradatec.com and we’d be happy to answer your questions and provide a demo.
