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Efficiency, Scalability,
and Accuracy gains with Data Capture Services

Over the past decade, the mortgage industry has made a
substantial effort to move toward a paperless environment and,
with the economy still on shaky ground and default volumes
continuing to trend upward, lenders and servicers are focusing
their efforts on creating efficiencies wherever possible to
minimize losses.

Every process in the mortgage loan pipeline requires access
to data, and any efficiency gains relating to the way data is
received and distributed throughout a lending or servicing
organization can result in significant time and cost savings.
As a result, many paper documents have been converted to
images. While imaged paper documents are a good start, much
more can be done to create efficiencies in this area. That’s
where data capture services, such as those offered by
LPS Desktop™ Data Capture Services (LPS/DCS),
can make a big difference.

Whether an organization receives an electronic document or
a paper document, the information contained in that document
is essentially locked in as a whole. Anyone requiring specific
data from a document has to manually scan through all of the
information to get to the portion they need for a particular
task. Too often this approach results in delays and costly
data entry errors. LPS/DCS solutions provide lenders and
servicers with access to state-of-the-art Optical Character
Recognition (OCR) technology, as well as human resources to
extract and verify data from the documents used in their
everyday environment.

Once the data is extracted, validated and converted to the
desired format, pre-determined business rules enable any
portion of the data to be automatically routed across an
organization and auto-populated into other systems as needed
for task completion. A specific data set may even be routed to
several individuals simultaneously, reducing their need to
sort through irrelevant data and minimizing the time delay
associated with a linear distribution process. “Route images
around the office not paper.”

While data capture services can create efficiencies in
almost any process, there are several specific areas where
impressive gains can be expected.

Data Capture in the Appraisal
Process
Whether appraisals are required for the
origination process or the default process, the data contained
within those documents is critical for decision making and
related task completion. Lenders and servicers can utilize
LPS/DCS to extract all pertinent data from Appraisal Report
forms and expeditiously deliver it to the appraisal review and
valuation departments.

Data Capture in the Loan Boarding
Process
In the process of boarding loans,
servicers are held liable for any data fields that are missing
or inaccurate in the loan documents. High risk data may
include: ARM contract plan information; inaccurate interest
rates; pre-payment plans and penalties; and property address
and borrower name. These data sets can be validated through
DCS' customizable rules to minimize risk.

Customizable data extraction, data validation, data
calculation and database matching solutions available through
LPS/DCS can help servicers ensure the validity and accuracy of
their loan boarding process data.

Data Capture in the Loss Mitigation
Process
Record default volumes and regulatory
pressures require servicers to focus on loan modifications as
a primary loss mitigation strategy, but keeping up with the
number of loan modifications can be challenging. To do so
effectively, servicers need instant access to a variety of
data to make loan modification decisions.

LPS/DCS solutions help servicers manage this process by
making sure they have the data needed every step of the way.
For example, LPS/DCS solutions can confirm if required loan
modification data was received from the borrower and whether
it is correct per the pre-determined business rules. If the
data has been received and is correct, the loan modification
process can go to the next phase. If not, servicer
representatives have all the information they need to advise
borrowers of what is still required. This eliminates the time
delays and costs associated with locating and identifying this
information before reconnecting with borrowers.

Data Capture in Other Areas
While there
is a great deal of focus on data capture services being used
to create efficiency gains in the appraisal, loan boarding and
loss mitigation processes, other areas, such as mailroom,
insurance and tax, are also excellent targets for services
offered by LPS/DCS. The benefits in efficiency and improved
accuracy are significant.

When facing the pressures of a challenging market, lenders
and servicers must ensure efficiency across every process to
keep losses to a minimum. Time spent searching for the
information needed to complete various tasks can be a huge
drain on resources across the entire organization. To
dramatically improve this process, LPS/DCS provides the
solutions organizations need to ensure that necessary data is
immediately available when, where and how it is needed. In
today’s demanding market, nothing could be more important.

For more information regarding LPS/DCS please contact Kevin
Hamilton at [email-masked].

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