Streamlining mortgage QC with digital process management services
by Alok Bansal
If you visit the Consumer Financial Protection Bureau (CFPB) website, it is evident that mortgage regulations are amended dozens of times each year. It might be possible for a mortgage lender, servicer, or other service provider to keep track of these regulatory amendments on their own, but this essential task is best left to organizations such as mortgage business process management (BPM) firms. BPM firms focus on managing these activities and possess the technological capabilities needed to drive effectiveness. With their help, mortgage companies can avoid serious business risk and be assured that their loan packages and other documents are fully compliant with all local and federal laws.
Look for comprehensive service ranges
The range of mortgage quality control processes performed by leading BPM firms span the entire mortgage cycle, including white-glove verification of mortgage information during initial loan package indexing, pre-funding and post-close audits, reviews of disclosed loan estimates, closing disclosures, and fraud reviews. Instead of relying on multiple service providers for these services, you can get better value by selecting a BPM partner capable of performing all the tasks you need. Moreover, choosing a partner that offers an onshore-offshore hybrid delivery model can also reduce your overall cost by 40% or more.
Insist on a high-tech service provider
To determine which BPM provider is right for you, it is critical to assess their technological capabilities. The most successful BPM firms complete the bulk of their tasks by leveraging highly efficient, accurate, and reliable digital technologies instead of manually evaluating loan documents against multiple lists of federal, local, and company-specific mortgage compliance rules. Technology-led firms use document capture and indexing tools to identify and sort documents, from which loan information is then extracted by optical character recognition (OCR) and machine learning software. After extraction, this information is passed through a business rule engine that performs multi-level compliance checks with efficiency, accuracy, and impartiality that no human worker can compete with.
Why wouldn’t a tech-only approach be better?
Given the advantages of these digital technologies, you might be wondering why you need a service provider at all. Why not just buy these digital tools and use them to process everything in-house? Good question. Here are some important reasons why buying these technology applications is not enough to ensure success:
Reason 1: High-tech infrastructure is expensive
The investment required to automate document processing can be prohibitively high for all but the largest mortgage firms. It would take a long time to recoup the costs associated with the high-end scanning equipment, software licenses, and other infrastructure that you would need. Moreover, sustaining the effectiveness of these technology solutions involves huge maintenance and upgrade costs.
Fluctuations in workload also make such a large investment quite risky. Unless your mortgage firm has an exceptionally steady and large number of loans to process each month, partnering with a service provider offers better value.
Reason 2: Today’s technology isn’t perfect
Despite their clear advantages, even the highest-ranked technology processing systems are only 95% accurate at best, which leaves a gap in quality. To ensure 100% quality, these results should be reviewed by an expert. A capable BPM partner can comprehensively manage these activities, allowing you to focus on your core business processes.
Visionet and other top BPM companies offer an ideal mix of digitally-enabled solutions. These products and services are integrated, allowing you to place orders and receive processed results without leaving the mortgage processing software application. To discover the best mix of technologies and technology-led services for your mortgage firm, please contact Visionet Systems for a complimentary consultation session.