DENVER - A new software package offered by Formation Technologies allows banks to automate their loan application process and ensure compliance with regulations.
The App Publisher software lets bank employees take loan application information on-line and produce laser-printed applications. During the process, App Publisher automatically generates all required state and federal disclosure documents.
It also gathers all data for Home Mortgage Disclosure Act and Community Reinvestment Act reporting.
Farmers and Merchants Bank of Granite Quarry, N.C., plans to put the software in place soon. Currently the bank uses paper applications, which then are then keyed into a computer.
Taking applications on-line will reduce this process to one step, said Darlene Treece, vice president of operations for $156 million-asset Farmers and Merchants.
"We expect to see some efficiencies in the way we handle loans, and it will speed the whole process," Ms. Treece said. By reducing the application to one step, "it gives us some efficiencies in that we can use other employees in more productive capacities."
The software costs $5,000 for the first user and $1,500 for each additional user.