The Continuing Evolution of LPS Desktop® Invoice
Management

Invoice Management, one of the original
components of the LPS Desktop® platform, has undergone continuous
improvements since its inception. The system’s initial concept was
to streamline the cumbersome, high-volume billing process lenders
and servicers face when engaging a large number of vendors to
perform a wide array of services relating to loan management. The
process was full of costly pitfalls, ranging from labor-intensive
and error-prone manual data entry, to overbilling and failure to
comply with investor and servicer requirements.

LPS Desktop Invoice Management developed a solution to address
all of these issues, bringing about unprecedented levels of
efficiency, improved accuracy, faster reimbursements and improved
compliance with related guidelines.

LPS Desktop Invoice Management is a highly configurable,
Web-based application that brings vendors and servicers together on
a common invoicing platform. The application employs standardized
electronic invoices, which can be processed automatically with
customer-specific business rules.  The system’s bi-directional
interface with servicing systems brings efficiency and accuracy to
the invoicing process.

System-generated invoices are created in two ways. Vendors either
enter them individually online via LPS Desktop Invoice Management’s
Web interface, or they can upload them in a batch to the
application. Approvals can be automated when client-defined criteria
are met. This eliminates the time-consuming data entry once required
to enter disparate invoices into a servicer’s accounts payable
system. Not only does it improve turnaround times, it dramatically
reduces the likelihood of errors normally associated with re-keying
data.

The system’s client-specific, built-in rules engine enables users
to reduce the risk of overbilling. Invoices that don’t meet the
client-defined criteria for automated approval move into an
exception queue for manual intervention. The same rules engine also
ensures that invoice amounts and charges follow servicer- and/or
investor-supplied guidelines.

Since its inception, LPS Desktop Invoice Management has grown
significantly, with more than 54,000 users on the application,
including 15,000 servicer and 39,000 vendor personnel.  To
ensure LPS Desktop Invoice Management’s continued success, the team
regularly sought feedback from customers to determine what
improvements could be made.   This  led to several
new Invoice Management modules:  REO Broker, Flip, Claims and
Automated Clearing House (ACH).

LPS Desktop Invoice Management REO Broker

REO Broker provides servicers that manage REO broker
relationships and activities internally with an all-inclusive system
to manage REO invoicing activities from one central location.
This module allows REO brokers to submit their invoices and
supporting documentation individually or in bulk.  Servicers
are no longer bogged down by paper invoices or disparate electronic
formats.  The invoices are standardized, stored electronically
and immediately available for review, approval and
payment.

LPS Desktop Invoice Management Flip

The Flip module fulfilled a unique need in the asset management
niche. Traditionally, asset management companies were required to
collect and scan disparate invoices from a multitude of vendors and
spend a great deal of time managing and paying these invoices.
Asset management companies would then have to send invoices and
supporting documentation to servicers for their review, approval and
reimbursement.

The LPS Desktop Invoice Management Flip application automates the
entire process.  Once the broker submits their invoice and
documentation, the information is stored electronically and the
asset management company can immediately review, approve and “flip”
it to the servicer for payment. Double entry is eliminated and
turn-times from invoice submission to reimbursement are dramatically
reduced.

LPS Desktop Invoice Management Claims

The Claims module is an automated solution for servicers to
process and file claims after an REO property has been successfully
disposed. In the current market environment, it’s become
increasingly important for servicers to protect their bottom line by
obtaining reimbursement for expenses to which they are
entitled.  However, recouping those expenses can be a challenge
with the high volume of REO properties and the multiple vendors
engaged to perform services required to dispose of those assets.
Until the LPS Desktop team developed the Invoice Management Claims
module, servicers faced a time-consuming and tedious reimbursement
process.

The LPS Desktop Invoice Management Claims module enables clients
and investors to have a centralized location for claims processing,
where the module streamlines processes for both parties. Through a
direct interface via a Web service call to the investor application,
servicers can quickly create a claim using line items from
previously billed invoices and create additional line items for
services not billed through the LPS Desktop application. Claims can
also be created without a corresponding invoice.  Images and
supporting documentation are attached to each line item or are
pulled from an existing invoiced line item. Claims can be submitted
electronically, individually or in bulk, to the investor for
processing the same day. Investors can automatically approve, adjust
or deny claims based on pre-defined approval limits.

LPS Desktop Invoice Management ACH

In addition to developing client-customized workflow
capabilities, the LPS Desktop team augmented the Invoice Management
solution with an Automated Clearing House (ACH) application  to
expedite the check payment stage of the invoicing process.
This feature interfaces with servicing systems, such as LPS
MSP, to provide efficiency gains, enabling servicers to process
third-party provider payments electronically and more
effectively.  When comparing traditional check production to
electronic payments, the benefits are clear:  reduced costs,
enhanced processing efficiency and improved accuracy.

As LPS Desktop Invoice Management continues to evolve, new
integrations, functionalities and improvements will remain important
priorities for the LPS Desktop Team. By keeping a pulse on the
market and constantly looking for ways to meet clients’ needs, LPS
Desktop will be able to bring viable solutions to fruition. We will
continue to update you regarding these exciting new developments to
the LPS Desktop Invoice Management platform as they occur.

To learn more about LPS Desktop Invoice Management,
please call 800-991-1274 or email [email-masked].

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