The mortgage loan process is time-consuming and tedious. Lenders spend hours manually sifting through mountains of paperwork and loan applications. But it doesn’t have to be this way. Mortgage companies looking for ways to close loans faster should look into Intelligent Document Processing (IDP). IDP makes mortgage loan application processes more efficient, vastly reducing the time spent on each loan.
What is IDP?
Organizational data is commonly spread across various documents, databases, emails, images, and PDF documents, making it difficult for team members to find the right information. IDP aims to improve the way data is captured and managed, making it easy for team members and consumers to access the information they need.
IDP works by combining tools such as machine learning (ML), Optical Character Recognition (OCR), computer vision, and Natural Language Processing (NLP). While OCR has been around for decades, IDP takes it to a new level by combining it with the other tools to create more relevant results for users.
Support automation platforms like Capacity use IDP to help mortgage companies improve business processes and run more efficiently.
What are the advantages of using IDP?
Increasing accuracy and efficiency.
IDP allows mortgage companies to scan accurately, capture, convert, organize, index, analyze, and route data in just one click. This eliminates the risk of human error because there are no manual steps involved.
Also, IDP is built for scale, so you can scan and process more data as your needs grow with minimal impact on processing time. As IDP scales with the company and its needs, you no longer have the challenge of a system that might be too big or small for your business.
Improving job satisfaction.
IDP is an asset to workers who deal with dull or repetitive tasks. It makes the work of a loan officer more interesting by giving them the ability to focus on projects that are more creative and challenging, freeing up time for other duties they enjoy doing. And, IDP is a quick and simple process. Employees don’t need the same amount of training as other software packages to get started.
Integrating with existing systems.
Automation platforms like Capacity have IDP systems that integrate seamlessly with your current tools or workflows like Slack or Microsoft Teams. So there is no need to input data across a range of platforms. It’s all automated with the click of a button.
How does IDP help mortgage companies close loans faster?
Mortgage loan companies collect a ton of data during the loan process. The problem is that it takes a tremendous amount of labor hours and expertise to pull the relevant information from the data. This lengthens the time between a mortgage application and final approval.
IDP automatically extracts key information from mortgage documents and adds it to a knowledge base that team members can access instantly. It can then be used to close a loan faster because of the following features.
Improving customer experience.
Home buying applicants can feel overwhelmed by the amount of information they need to provide before a loan is approved. IDP helps lenders easily identify missing documentation, such as a credit report file, so that a lender can quickly request it from an applicant.
This can help to reduce the number of late mortgage closings by saving lenders from conducting unnecessary follow-up calls or emails with borrowers about documents they may have forgotten to send in. In fact, platforms like Capacity can automatically contact the potential home buyer about missing documents. Borrowers get one request for missing files rather than a loan officer asking for documents on multiple occasions to review the physical paperwork.
Making data more accessible.
This makes sure everyone is on the same page regarding loan applications, increasing productivity, and decreasing errors due to miscommunication.
IDP lets you add custom fields or tags to your documents that will be searchable by natural language processing capabilities. This makes mortgage documents instantly accessible and organized.
Currently, most mortgage companies have to refer to data from various sources, making it easy for loan offers to become frustrated and overwhelmed. With IDP, loan officers no longer have to sift through mountains of files searching for specific pieces of data, like an interest rate or purchase price.
Next steps for lenders looking to close a loan faster.
At Capacity, one of the top problems we see mortgage companies struggling with is outdated technology. By adding intelligent document processing, you can get an overview of all your documents, easily find what is needed, and automatically classify files for future searches. This will help you to close loans quickly and efficiently.