ISGN Corp. of Bensalem, Pa., said it has added an invoice processing feature to LenStar, a system it offers mortgage servicers for communication with foreclosure attorneys and other vendors.
The feature lets lenders settle their bills from such vendors "quicker and with fewer errors than they can when manually toggling between accounting and invoicing systems," ISGN said Monday.
Attorneys and vendors can electronically submit invoices one at a time or in batches; services can then use the system to approve or deny the invoices. The system also tracks the status of invoices, and can export data into lenders' accounts-payable systems. It can be used on its own or integrated into a servicer's existing systems, ISGN said.
Servicers point to the inefficiencies in communicating with attorneys on a variety of matters, not just invoicing, as a key problem that technology should address.
For example, botched communication with attorneys has resulted in several mishaps involving borrowers looking to file for bankruptcy. This makes it harder for lenders to recover whatever amount they can on the mortgage.
"Lenders run the risk of having their claims denied if submissions aren't precise to the requirements of each bankruptcy court, and we see stories of such denials almost on a daily basis," said Steve Horne, president of Wingspan Portfolio Advisors, a specialty servicer in Carrollton, Texas.
As a result, technology vendors like ISGN are trying to automate this process.
LenStar users service more than 25% of the residential loans in the country, the company said. The system cuts down on phone calls, faxes and shipping by letting users electronically share foreclosure and bankruptcy information. It also automates the ordering of title insurance, automated valuation models and broker price opinions.