paperless lending - streamlining the loan management process

Paperless Lending Made Easy: Streamlining the Loan Management Process

Moderator: Dan Kim – Product Marketing Manager

Presenter: David Geddes – Manager, Sales Operations

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

Why Paperless Lending?

Moving towards paperless will:streamline your lending process reduce costs, and boost operational efficiencies

Business Challenges

• Processing loans is more complex• More work must be completed in less time• Longer approval cycles• Higher operating costs• Inconvenient for Borrowers

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

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

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

Paperless Lending – The Process Customer access via 3rd

party portal (e.g. Banking/ brokerage portal)

Compile Verify Approve Upload via ECM integration

Electronic signature capture

Output to print for client copy

Secure Authorized

Access

Loan officer workstation WWW

SSOAPIWEB APISOAP

Email/SMS notification of

document availability

Store Manage Access

Doc. Mgmt. SystemPDFTIFF

LOS System

Scan and Index

Practical Reasons For Paperless Lending

Innovation• Innovation &

Agility are keys to growth

• Higher level of security with Digital Signatures

• Help the organization respond to change

Innovation• Innovation &

Agility are keys to growth

• Higher level of security with Digital Signatures

• Help the organization respond to change

Compliance• Complying with

internal policies, industry regulations & legal requirements

• Demonstrate that standards and procedures are in place and being followed

Compliance• Complying with

internal policies, industry regulations & legal requirements

• Demonstrate that standards and procedures are in place and being followed

Efficiency• Give people ready

access & enable them to be more productive

• Empower them to make informed decisions

• Reduce costs related to content creation & storage

Efficiency• Give people ready

access & enable them to be more productive

• Empower them to make informed decisions

• Reduce costs related to content creation & storage

Improve• Information

Availability• Information

Security• Customer Service

Improve• Information

Availability• Information

Security• Customer Service

Ensure• Disaster Recovery• Business

Continuity• Demonstrate

Regulatory Compliance

Ensure• Disaster Recovery• Business

Continuity• Demonstrate

Regulatory Compliance

Reduce• Costs associated

with printing, storage & retrieval

• Time Wasted on Manual Search & Retrieval

Reduce• Costs associated

with printing, storage & retrieval

• Time Wasted on Manual Search & Retrieval

Tactical Benefits of Paperless Lending

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

1. How Digital Signatures Work

• All electronic forms must have signing blocks created

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

Increased Security with Digital Signatures

• Digital signature technology prevents altering of documents

• Icons show the validity of a signature

Increased Security with Digital Signatures

Click on a Signature to view the Status:

Increased Security with Digital Signatures

Click on a Signature to view the Status:

2. Effects on the Borrower Approval Interview

• Can affect the order of operations

2. Effects on the Borrower Approval Interview

• Can affect the order of operations

• May require some re-design on the workstation

2. Effects on the Borrower Approval Interview

3. How to Deal With Hardcopy Files

• Some files still originate in hardcopy– 3rd 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

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

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

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

Apply the “5 Easy Steps for DM Deployment”

• Business Assessment• Identify & prioritize• Take a phased approach• Benefit realization• Leverage your investments

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

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

Visit www.doxim.com to learn more

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