Processing a loan application involves sifting through hundreds of pages and understanding many different mortgage document types.  With an increasing real-time service expectation from borrowers, an organization who can analyze complex loan packets more rapidly stands to gain a competitive advantage in the lending space. Automating loan processing allows organizations to reduce time spent manually processing these documents, enabling organizations to approve these loans faster.

But what goes into an effective automation solution? Let’s take a look at how each piece of the workflow contributes to creating a more efficient loan processing environment for financial institutions.

1. Recognize data within each document. Using accurate optical character recognition technology, the software recognizes text information from scanned documents and electronic hybrids. Making files text-searchable allows users to search for specific information instantly and is a crucial step toward preparing the documents for automated processing.
2. Classify documents within the loan packet. A loan packet is comprised of a variety of documents including income statements, credit reports, and personal identification documents. The software automatically classifies each document and allows users to set rules to automatically split, merge, sort and reorder based on document type.
3. Automatically extract field data from loan documents. Once the data is extracted and placed into your organization’s server, your organization would be able to quickly analyze the gathered information. This ensures a faster turnaround time and a more accurate analysis on the loan value and its risks.
4. Machine Learning. When documents do not meet an organization’s business rules, they are sent to a manual validator for review. Machine learning allows the software to continuously learn from any manual validation that takes place to improve system accuracy as well as reduce time spent on manual validation over time.

Is your organization ready to improve the experience of potential borrowers with faster turnaround times on loan approvals? Learn more about loan automation with CVISION’s Trapeze.