Paperless Lending Made Easy: Streamlining the Loan Management Process. Presented by: David Geddes Manager, Sales Operations

Transcription

1 Paperless Lending Made Easy: Streamlining the Loan Management Process Presented by: David Geddes Manager, Sales Operations

2 Agenda 1. Business Challenges with Paper-Based Lending 2. Ideal Paperless Lending Environment 3. Benefits of Paperless Lending 4. 5 Things to Consider When Going Paperless 5. How to Get Started 6. Summary 7. Next Steps

3 Why Paperless Lending? Moving towards paperless will: streamline your lending process reduce costs, and boost operational efficiencies

4 Business Challenges Processing loans is more complex Increased workload Longer approval cycles Higher operating costs More work must be completed in less time Inconvenient for Borrowers

5 Manual Lending Process Requires documents compiled from various sources Hardcopy files add delays in the approval process Time wasted looking for misplaced or in use documents Reprints, couriers and physical storage fees drive costs higher

6 LOS Helps Provide Some Automation Using an LOS helps deal with some automation and electronic processing Compile loan applications electronically May include some workflow Some files still come in hard copy Eventually all files are printed and stored in hard copy

7 What is the Ideal Lending Process? End-to-end processing of loan application No printing required Scanning solution for hardcopy documents Integration with ECM for automated uploads Entire loan application folder stored in your ECM system Integration with Online Banking to expose lending files

8 Paperless Lending The Process Customer access via 3 rd party portal (e.g. Banking/ brokerage portal) Scan and Index /SMS notification of document availability LOS System Compile Verify Approve Loan officer workstation PDF TIFF Upload via ECM integration Doc. Mgmt. System Store Manage Access WWW SSO API WEB API SOAP Secure Authorized Access Electronic signature capture Output to print for client copy

9 Practical Reasons For Paperless Lending Efficiency Give Give people ready access & enable them to to be be more productive Empower them to to make informed decisions Reduce costs related to to content creation & storage Innovation Innovation & Agility are are keys keys to to growth Higher level level of of security with with Digital Signatures Help Help the the organization respond to to change Compliance Complying with with internal policies, industry regulations & legal requirements Demonstrate that that standards and and procedures are are in in place and and being followed

10 Tactical Benefits of Paperless Lending Reduce Costs associated with printing, storage & retrieval Time Wasted on on Manual Search & Retrieval Improve Information Availability Information Security Customer Service Ensure Disaster Recovery Business Continuity Demonstrate Regulatory Compliance

11 Considerations for Paperless Lending 1. Working with digital signatures 2. Borrower signing process 3. Dealing with hardcopy files 4. Automating the upload of loan files 5. How the borrower get their copies

12 1. How Digital Signatures Work All electronic forms must have signing blocks created

13 1. How Digital Signatures Work Work with your LOS provider to get digital signature-ready forms & workflow Acquire digital signature technology Configure Adobe for appropriate verification/certificate plugins

14 Increased Security with Digital Signatures Digital signature technology prevents altering of documents Icons show the validity of a signature

15 Increased Security with Digital Signatures Click on a Signature to view the Status:

16 Increased Security with Digital Signatures Click on a Signature to view the Status:

17 2. Effects on the Borrower Approval Interview

18 2. Effects on the Borrower Approval Interview Can affect the order of operations

19 2. Effects on the Borrower Approval Interview Can affect the order of operations May require some re-design on the workstation

20 3. How to Deal With Hardcopy Files Some files still originate in hardcopy 3 rd party appraisals Proof of income letters Receipts, invoices, title Plan to have a capture solution Understand the workflow and how/when files are scanned & uploaded

21 4. Automate the Upload of Loan Files If you re using an LOS: Look for Integration with your document management system Discuss digital signature options they have developed If you re self-managing the loan forms: look to automate the upload using hot folders use scanning/indexing tools Investigate your options for digital signatures

22 5. How the Borrower Gets Their Copy Be Flexible - some borrowers may insist on printed copies Look for integration between your Document Management system and Online Banking Be selective in which files are offered via online banking

23 How to Get Started You don t have to get there in 1-step Start with scanning hardcopy funded loans Decide what to do with archived files Work with all providers to prepare for additional functionality Consider Doxim s 5 Easy Steps for DM Deployment

24 Apply the 5 Easy Steps for DM Deployment Business Assessment Identify & prioritize Take a phased approach Benefit realization Leverage your investments

25 Overall Summary Paperless Lending doesn t have to be achieved in a single phase Electronically stored loan files provide many benefits Digitally signed documents are more secure Several digital signature solutions/methods A scanning & indexing solution is required for hardcopy forms Borrowers can benefit from Paperless Lending

26 Next Steps Include your LOS provider in your planning Understand the hardware & software requirements Optimize the overall business process for paperless lending Other Resources: Digital Signing Technology: Topaz, DocuSign LOS Providers: Technicost, ProLender, Horizon

27 Contact: David Geddes