What is the best document processing tool for mortgage providers?

Document processing is a big part of mortgage processing. Mortgage documents are categorized and the required information is extracted for the mortgage underwriting process. There are a few options available for document processing. Our objective here is to list out the top advantages and disadvantages that each type of Document processing player provides so you can identify the type of document processing player you are engaging with and choose based on your needs.

  1. Pure play Document Processing solution players
  2. Automation and RPA players with Document Processing solution
  3. Document Processing solution integrated with Loan originations systems
  4. Business processing management services with document processing solutions (Good option but not the best)
  5. Mortgage focused document processing solution (Our recommendation for mortgage document processing)

Pure play Document Processing solution players

These are players that focus just on technology. They have a Document processing solution that you can use to fulfill your mortgage document processing needs.

The highlights of pure play Document processing players is that their products have the latest technology. The products will get periodic upgrades that you can adopt to if it meets your needs.

The challenges are that they will focus on a multiple industries and will not have a razor sharp focus on mortgage which will lead to gaps in process or quality of service. Pure play Document processing solution players will promise close to up to 80% accuracy in extraction and indexing, so you still will need white-gloving (human in the loop) to get to 99% accuracy. This increases complexity as you will have to engage with an outsourced partner along with the Document processing player.

Automation and RPA players with Document processing solutions

Robotic automation is making a huge impact on mortgage processing. A lot of processes that have repetitive, manual or semi complicated work can be automated. This leads to lower cost better accuracy and lesser manual effort. Some RPA players have their own document processing solutions that they have developed.

The highlights here is that the implementation of automation initiatives can be coupled with the mortgage document processing which will lead to faster implementation. Automation and document processing are complementary and can be more powerful together. If you use the products for one company for automation and document processing you can get a higher degree of accountability and better responsiveness to improvements required.

The challenges are that the document processing solution that a RPA player has might be suboptimum. An RPA provider with a document processing solution provide a packaged deal does not let you do that. It’s a compromise that has its benefits but will never be the best option. Not choosing the best Document processing will compromise your automation investments as automation depends of high quality data that IDPs are responsible for.

Loan originations systems with document processing capabilities

Loan originations systems providers have developed their own document processing capabilities. This is either a service that you can opt for or is provided by default.

The highlights of this option is that the document processing is directly built in into the LOS but this capability is something that a lot of Document processing solutions have also. The LOS player has a strong understanding of the mortgage industry and can ideate better features. The document processing will be compliant to mortgage regulations and document formats.

The challenges are that document processing is a small part of the offering of a LOS so the technology investments are also proportional. You will still need a partner to validate the extracted data to reach 99% of accuracy so the cost savings are debatable.

Business processing management services with document processing solutions

Players that have white gloving services that are complemented with an document processing solutions. The solution is developed inhouse and is not a third party solution.

The highlights are that such companies utilize their massive business process operations experience to develop solutions for mortgage processing that can bring is some efficiency to pure manual processes. The solutions are focused more to enable workflow management than to automate. However these solutions do help in increasing the value however better options will result in better results.

The challenges is that you might not get a choice of Document processing solution but that is depended on your white-glove partner. The option to choose the Document processing solution that you want can be facilitated by your white-glove partner. The primary skillset of the company is people management and operational efficiency. Developing a solution is not something that these companies excel at.

Mortgage focused Document processing solution

Mortgage focused document processing solutions are document processing solutions specially designed for mortgage and hence cover the breadth and depth required to succeed in mortgage document processing

The highlights are that these solutions are designed especially for the mortgage document processing and so have all the features to manage the document workflow and automate the data processing as per the standards required for the mortgage industry. As these companies only deal with mortgage they have lots of data on Mortgage and have succeeded in building AI and ML specially tuned for mortgage. AI and ML require massive data to train. These solutions have pre-trained models that start delivering on day 1 as per the SLAs. The products can be integrated to the entire mortgage application landscape and can be configured to meet the exact needs of mortgage document processing. Moreover due to their large experience in mortgage they can ideate new feature better that the rest.

The challenges is that as the focus is only on mortgage and so the scale of the business is limited to the mortgage document processing market size. This limits the investments required but on the other hand the investments are made only in areas relevant for mortgage document processing.

“We have more details that lets you explore how DocVu.AI helps you to make your operations more efficient with the following article.”

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