05 Feb, 2021

Improving Accuracy in Loan Boarding and Set Up

Improving_Accuracy_in_Loan_boarding_and_Set_up

The Federal Reserve has been on a buying spree, and now owns nearly a third of bonds backed by home loans in the U.S. This in turn has driven the mortgage rates lower and amplified the competition within the mortgage lending industry intensifying the pressure on the mortgage servicing industry too.

With mortgage servicers investing quite some amount on new client onboarding, the faster the process the happier the customers. Customer satisfaction and reducing the cost per loan serviced are some of the key differentiators required for staying ahead of the competition. With that in mind, improving the accuracy in loan boarding and set up becomes a priority for servicers in Mortgage Process Outsourcing.

While speed matters, accuracy is equally important. For client servicing, it is important that the servicer has all the borrower and loan related information available, verified, and validated. This is all part of the loan boarding process. The data-heavy process is often error-prone which includes incorrect application of mortgage payments, mistakes in borrower contact details, escrow analysis and payment, etc. The question hence is about, how the Loan Set up or Boarding Services can be improved?

In Mortgage Process Outsourcing, when a loan servicer buys mortgage servicing rights, the loan boarding department is amassed with excessive paperwork. A digitized, client-centric approach for loan boarding and set up, however, can not only help in improving accuracy but also in ensuring customer satisfaction. Here are some aspects that can improve the Accuracy in Loan boarding and Set up.

 

1. Introductory Customer Communications

Ground Zero of loan boarding and set-up is establishing a communication channel that allows secure and simple data exchange possible. Mortgage Servicers often have a specific team to collect the loan boarding requirements and perform analysis of the document checklist. In addition to having a team, digitization of the whole process helps in giving customers a modern-day experience and making communications faster and adherence to compliance easier.

In other words, Mortgage Loan Boarding Support Services are more or less about instant gratification and conversion of information to a user-friendly data format that makes verification easier and interactive too.  The errors can be reduced significantly and the whole process becomes less manual and faster too.

 

2. Set-up Loan Information on the Servicing System

Setting-up loan information is more or less a data intensive process and under traditional circumstances involves a large paper trail. Mortgage Process Outsourcing is a good way to make Data Extraction and Document Indexing faster and more efficient, as mortgage servicers today have migrated to a process that involves minimal paper transactions by the digitization of the paper documents and that in turn makes information available directly on the servicing system faster.

This is often done by integrated utilization of advanced document scanning and capture software that also handles document classification and optical character recognition (OCR) for uploading data.


3. Authentication of the Given Information

The data collected and the documents submitted by the customers undergo a mandatory check to verify that it fulfills the compliances. A report is then generated for the same that identifies the gaps if any. When approached manually using skilled analysts, this process can be cost and effort extensive, slow-paced, and has chances of human error too. Such discrepancies in turn can lead to regulatory non-compliance as well as unsatisfactory customer experiences. Mortgage Loan Boarding outsourcing support services, utilize automation for real-time authentication along with scanning documents to find appropriate details and running cross-verifications across different databases. Automation ensures not just accuracy but also reduces the overall loan-boarding time.


4. Ensuring That all Needed Documents are Available in the Loan File

With faster processing becoming the norm, most mortgage servicers either have an in-house system or a generic system for loan origination. One of the primary features of this system is Deficiency Identification and Automated Reporting.  A good system not only builds a loan setup workflow but also identifies files with missing information or required fields. This is followed by getting back to the borrowers and notifying the credit department about the missing information and retrieving the missing data.

While the above-mentioned steps increase the proficiency of the loan boarding process, Mortgage Process Outsourcing and harnessing the experience of expert mortgage servicers can ensure that the cumbersome Loan boarding and Setup are done accurately and with more efficiency.

 

Why Choose Peoples Processing?

Peoples Processing helps mortgage Servicers to achieve over 98% accuracy. With extensive domain experience in the mortgage servicing field, Peoples Processing offers highly reliable and accurate loan boarding support services.

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