In a move to help mortgage lenders dig out from their growing mountain of paperwork, Document Processing Systems has introduced a service to speed the funding of loan applications from brokers.
Called Pre-Closing Audit Service, it is the latest product from Farmington Hills, Mich.-based Document Processing Systems, which offers an array of of products and services to over 600 mortgage lenders nationwide to aid in the closing of mortgages.
With new service, Document Processing Systems installs a personal computer and laser printer on site at a wholesale lender.
When a mortgage broker calls Document Processing Systems for the closing paperwork on a given loan, the company typically "overnights" the documentation to the broker.
In the past, the broker would then fax copies of this paper-work to the wholesale lender in order to get final approval and funding for the loan.
With the Pre-Closing Audit Service, when Document Processing Systems generates paperwork for the broker, it will automatically route the required documents to the wholesale lender via modem.
The service gives the wholesale lenders a method for reviewing documents and funding requests before closing. The wholesale lender, in fact, usually has the documents before they even reach the mortgage broker.
Aimed at Wholesalers
"It used be the other way around, with the mortgage brokers lining up at the fax machine, trying to get the right documents out to the lender on time. The service expedites the funding of the transaction," said Richard E. Chapin, the president of Document Processing Systems.
The service is targeted to wholesale lenders who process a high volume of loans, and it is designed to add a quality-control function to the loan closing function.
"Without automation, cost delays such as post-closing corrections occur in as many as 50% of all [completed mortgages], costing banks," said Mr. Chapin.
According to Brenda Christ, an operations supervisor at Comerica Mortgage Corp. in Auburn Hills, Mich., the Pre-Closing Audit Service also eliminates the need for maintaining multiple fax lines.
"The mortgage broker doesn't have to stand by the fax machine waiting for a line to free up, and we don't have to wait around for their documents. There is a time saving on both sides," she said. "We also don't waste paper. There's less wear and tear on the fax machine."