Mortgage Loan Origination & Processing Software Solutions | Mortgage VCO

Entries from August 2011

Paperless Document Management Reduces Turn Times

August 29th, 2011 | Posted by Paul McQuade in Paperless Office

Paperless Mortgage OfficeWhen discussing how to improve turn times regarding the selling of loans to investors the topic quickly turns to paperless delivery. With investors today discouraging paper file delivery, it is becoming almost a requirement to deliver loans to them in some electronic fashion.

Most mortgage bankers end up using the individual bank's generic upload option of a non-indexed PDF file. While this method satisfies the basic requirement of a paperless file from the investor's perspective, it leaves a lot to be desired from an efficiency standpoint.

One of the many benefits of a true paperless document management solution is the ability to deliver an imaged loan file to the large banks like Wells Fargo, Chase, Citi, and Flagstar, in an indexed structure that allows the documents to flow directly into the given bank's workflow environment. This expedites the purchase process, which in turn reduces the time from delivery to purchase. Another benefit from imaged indexed delivery of the loan file is the overall reduction of the conditioned items in the loan purchase process, as documents that were misdirected in the non-index process are now correctly delivered to the proper category.

All of these features are inherently available in VCO File, our hosted electronic document management (EDM) solution, as the documents are managed in a paperless environment while the loan is built using VCO Lend, our loan origination and processing software (LOS).


The Mortgage Technology Daisy Chain Syndrome

August 23rd, 2011 | Posted by Paul McQuade in Cloud Mortgage Technology

mortgage technology strategyWhile at the sparsely attended Western Secondary conference, I had an unexpected takeaway. Based on the lack of foot traffic on the exposition floor, one might come to the conclusion that things other than vendor services were on the minds of attendees. No doubt the mortgage executive has a lot to fret about these days. There are significant looming issues, inside and outside our industry, which can easily preoccupy any executive. A failure to remain abreast of leading trends is risky and irresponsible, which is why strategic initiatives must be at play at all times. And today, no strategic plan is complete without a technology component. Looking back 10 years, most executives will tell you that they underestimated the importance of technological innovation both as an industry shaper and a differentiator from the competition.

A company should have a perpetual strategic technology plan in motion that is an integral part of an organization's overall strategic agenda. A plan that aims to improve efficiencies to drive down costs, while also capitalizing on innovative ways to drive business and top-line revenue, will ensure a company remains nimble in a rapidly-evolving industry.

I gleaned more industry insight, not from speaking to people on the expo floor, but from my casual conversations in the hotel lobby. I was amazed at the multitude of systems that companies are using to simply take a loan from cradle-to-grave. One professional described a collection of systems they were using within his company. One to manage loan prospecting, another for processing, then a handoff to an underwriting system, and yet another for funding, servicing and fulfillment. At many junctions, the rekeying of data created redundancies and inaccuracies. In a perfect world, a loan application progresses effortlessly, always on a forward path, yet we know that many loans suffer setbacks and need to be reworked. These setbacks can cause logistical challenges and data integrity issues, especially within a daisy-chain system whereby loans are pushed back down the chain. The inherent inefficiencies of a daisy-chained structure add time and costs to production, creating havoc for ops, sales, secondary and quite possibly QC if data integrity issues culminate into audit issues.

In conclusion, the ultimate strategic goal for any mortgage banker should be the adoption of a comprehensive loan origination and processing system that seamlessly ties and manages the core nodes of the loan life cycle: marketing, prospecting, origination, processing, underwriting, funding, interim servicing, and fulfillment. A system that can accommodate departmental staff, providing easy access to information and tools, yet have a sophisticated permissions-based rules engine, will ensure efficient throughput, positive user experience, and high data integrity. Ancillary functions like pricing, compliance testing, final loan docs, decisioning, etc. can be incorporated seamlessly into the workflow via integrated links with various service providers.




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