A Mortgage Outsourcer was able to increase the loan throughput three-fold with MOZAIQ’s Mortgage Document Classification Solution
In the Mortgage Origination process, underwriting turn times have a high impact on costs, operational efficiency, and customer service, as underwriting is the core component to the lender’s back-office service offering. Clients submit loan packages that are comprised of approximately 400 pages of scanned mortgage documents. Having a highly paid, skilled resource manually identify and categorize the individual loan documents prior to beginning the actual work of assessing the credit, product, and collateral within the loan package is a waste of a precious resource, and delays the loan processing turn-around time, impacting not only costs but also customer service.
The Solution
The MOZAIQ Document Classification (Indexing) platform identifies, names, and organizes large loan packages into individually defined mortgage documents and client specific folders. The indexing of a 400-page loan package requires less than 5 minutes and is fully integrated into the Loan Origination System (LOS) used by the underwriter.
By leveraging the platform, document classification can be performed 24/7 ensuring that the loan file is categorized and ready for the underwriter at any time. This allows the underwriter to focus on what they do best – assess a borrower’s risk and underwrite the loan as efficiently as possible, without having to do unnecessary manual tasks.
There are no up-front fees for deployment the document classification solution: the offering is priced on a per-loan basis, so the client only pays for what they use.
The Benefits
Indexing the underwriting package has greater than 75% straight through processing, and the client feedback loop, together with the Machine Learning algorithms, increases the quality of the scanned packages over time. By automating the document classification function, to run 24/7 enables the lender to leverage what MOZAIQ terms an “accordion workforce”, scaling the team as required based on fluctuating loan volumes.
Loan turn-time is reduced by at least 20 minutes per loan allowing the lender to deploy skilled resources on higher-value work, like assessing borrower risk. Furthermore, the rapid underwriting turnaround times strengthen the customer relationship, increase competitive advantage, and contain service costs without incremental resource costs for low level tasks as volumes spike.
We’ve been able to process more than three times the loan volume, keep costs in-line and increase employee satisfaction ever since MOZAIQ deployed their document classification solution.
