Paperless Lending - Streamlining the Loan Management Process


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A short presentation that provides insights into the steps you need to take, and the things you need to consider, to develop an end-to-end lending process that is truly paperless.

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Paperless Lending - Streamlining the Loan Management Process

  1. 1. Paperless Lending Made Easy: Streamlining the Loan Management Process <br />Moderator: Dan Kim – Product Marketing Manager<br />Presenter: David Geddes – Manager, Sales Operations<br />
  2. 2. Agenda<br />Business Challenges with Paper-Based Lending<br />Ideal Paperless Lending Environment<br />Benefits of Paperless Lending<br />5 Things to Consider When Going Paperless<br />How to Get Started<br />Summary<br />Next Steps<br />
  3. 3. Why Paperless Lending?<br />Moving towards paperless will:<br /><ul><li>streamline your lending process
  4. 4. reduce costs, and
  5. 5. boost operational efficiencies</li></li></ul><li>Business Challenges<br />Processing loans is more complex<br />More work must be completed in less time<br />Longer approval cycles<br />Higher operating costs<br />Inconvenient for Borrowers<br />
  6. 6. Manual Lending Process<br />Requires documents compiled from various sources<br />Hardcopy files add delays in the approval process<br />Time wasted looking for misplaced <br /> or in use documents<br />Reprints, couriers and physical <br /> storage fees drive costs higher<br />
  7. 7. LOS Helps Provide Some Automation<br />Using an LOS helps deal with some automation and electronic processing<br />Compile loan applications electronically<br />May include some workflow<br />Some files still come in hard copy<br />Eventually all files are printed and stored in hard copy<br />
  8. 8. What is the Ideal Lending Process?<br />End-to-end processing of loan application<br />No printing required<br />Scanning solution for hardcopy documents<br />Integration with ECM for automated uploads<br />Entire loan application folder stored in your ECM system<br />Integration with Online Banking to expose lending files<br />
  9. 9. Paperless Lending – The Process<br />Customer access via 3rd party portal (e.g. Banking/ brokerage portal)<br />Email/SMS notification of document availability<br />Scan and Index<br />LOS System <br />Secure Authorized Access<br />Loan officer workstation<br />Doc. Mgmt. System<br />WWW<br />SSO<br />APIWEB API<br />SOAP<br />PDF<br />TIFF<br />Upload via ECM integration<br />Compile Verify Approve<br />Store Manage Access<br />Output to print for client copy<br />Electronic signature capture<br />
  10. 10. Practical Reasons For Paperless Lending<br />Innovation<br /><ul><li>Innovation & Agility are keys to growth
  11. 11. Higher level of security with Digital Signatures
  12. 12. Help the organization respond to change</li></ul>Compliance<br /><ul><li>Complying with internal policies, industry regulations & legal requirements
  13. 13. Demonstrate that standards and procedures are in place and being followed</li></ul>Efficiency<br /><ul><li>Give people ready access & enable them to be more productive
  14. 14. Empower them to make informed decisions
  15. 15. Reduce costs related to content creation & storage</li></li></ul><li>Tactical Benefits of Paperless Lending<br />Improve<br /><ul><li>Information Availability
  16. 16. Information Security
  17. 17. Customer Service</li></ul>Ensure<br /><ul><li>Disaster Recovery
  18. 18. Business Continuity
  19. 19. Demonstrate Regulatory Compliance</li></ul>Reduce<br /><ul><li>Costs associated with printing, storage & retrieval
  20. 20. Time Wasted on Manual Search & Retrieval</li></li></ul><li>Considerations for Paperless Lending<br />Working with digital signatures<br />Borrower signing process<br />Dealing with hardcopy files<br />Automating the upload of loan files<br />How the borrower get their copies<br />
  21. 21. 1. How Digital Signatures Work<br />All electronic forms must have signing blocks created<br />
  22. 22. 1. How Digital Signatures Work<br />Work with your LOS provider to get digital signature-ready forms & workflow<br />Acquire digital signature technology<br />Configure Adobe for appropriate verification/certificate plugins<br />
  23. 23. Increased Security with Digital Signatures<br />Digital signature technology prevents altering of documents<br />Icons show the validity of a signature<br />
  24. 24. Increased Security with Digital Signatures<br />Click on a Signature to view the Status:<br />
  25. 25. Increased Security with Digital Signatures<br />Click on a Signature to view the Status:<br />
  26. 26. 2. Effects on the Borrower Approval Interview<br />
  27. 27. 2. Effects on the Borrower Approval Interview<br />Can affect the order of operations<br />
  28. 28. 2. Effects on the Borrower Approval Interview<br />Can affect the order of operations<br />May require some re-design on the workstation<br />
  29. 29. 3. How to Deal With Hardcopy Files<br />Some files still originate in hardcopy<br />3rd party appraisals<br />Proof of income letters<br />Receipts, invoices, title<br />Plan to have a capture solution<br />Understand the workflow and how/when files are scanned & uploaded<br />
  30. 30. 4. Automate the Upload of Loan Files<br />If you’re using an LOS: <br />Look for Integration with your document management system<br />Discuss digital signature options they have developed<br />If you’re self-managing the loan forms: <br />look to automate the upload using “hot folders”<br />use scanning/indexing tools<br />Investigate your options for digital signatures <br />
  31. 31. 5. How the Borrower Gets Their Copy<br />Be Flexible - some borrowers may insist on printed copies<br />Look for integration between your Document Management system and Online Banking<br />Be selective in which files are offered via online banking<br />
  32. 32. How to Get Started<br />You don’t have to get there in 1-step<br />Start with scanning hardcopy funded loans<br />Decide what to do with archived files<br />Work with all providers to prepare for additional functionality<br />Consider Doxim’s 5 Easy Steps for DM Deployment<br />
  33. 33. Apply the “5 Easy Steps for DM Deployment”<br />Business Assessment<br />Identify & prioritize<br />Take a phased approach<br />Benefit realization<br />Leverage your investments<br />
  34. 34. Overall Summary<br />Paperless Lending doesn’t have to be achieved in a single phase<br />Electronically stored loan files provide many benefits<br />Digitally signed documents are more secure<br />Several digital signature solutions/methods<br />A scanning & indexing solution is required for hardcopy forms<br />Borrowers can benefit from Paperless Lending<br />
  35. 35. Next Steps<br />Include your LOS provider in your planning<br />Understand the hardware & software requirements<br />Optimize the overall business process for paperless lending<br />Other Resources: <br />Digital Signing Technology: Topaz, DocuSign<br />LOS Providers: Technicost, ProLender, Horizon<br />
  36. 36. Visit to learn more<br />Contact us at<br />Follow us on twitter @doxim_inc<br />Subscribe to our YouTube channel, Doxim TV<br />