Archived Columns

Imaging Now the Rage

By Scott Kersnar, Editor, Mortgage Technology Magazine

Imaging has long been viewed merely as an attractive -- but costly -- way of archiving documents in a paperless environment. However, as optical scanners get cheaper every day and paperless processes prove their worth with workflow tools that monitor the entire loan file, the mortgage industry has awakened to the operational benefits of imaging. Nevertheless, with some states still requiring paper documents, it will be some time before lenders can adopt more than a hybrid approach to imaging.

That was the consensus offered at the SourceMedia MortgageEC Conference when a panel moderated by Tony Garritano, managing editor of Mortgage Technology looked at imaging and how it is used today by Nevada-based Republic Mortgage and other lenders.

Addressing the issue of paying to implement imaging, Visionet Systems president Arshad Mashood called loan review the "low-hanging fruit to recoup the cost" of integrating data, documents and processes. In order to integrate imaging into actual mortgage origination, a lender must map its current document workflow to identify all document touch points and identify its paper-related bottlenecks, said Mr. Mashood. He said the objective is to streamline and integrate documents with data-driven systems to create a "universal document workflow" that can enable the lender to better address opportunities and problems as they arise.

IndyMac Bank already has achieved a $15-per-loan savings by leveraging imaging to handle post-closing processes on an offshore basis, noted Mr. Mashood. He described major efficiencies that can be achieved by proactively queuing up properly indexed imaged files during the boarding process to enable handling lien releases on a "push-button" basis, enabling a 50% cost reduction compared to traditional processes. Imaging and indexing can enable similar efficiencies and reduced litigation in the foreclosure/default process, he said, as well as in proactive preparation for successful appeals in the loan repurchase process.

For Republic Mortgage, imaging is used for post-closing functions now integrated with MortgageFlex's LoanQuest LOS system to enable pulling up all the imaged documents associated with a particular borrower's name. Republic uses OnBase to scan paper loan documents, store them in electronic format, and deliver the electronic loan documents and index information to an investor.

Asked whether SMART Docs will render imaging obsolete, panelists agreed that imaging will remain useful for the foreseeable future. MortgageFlex VP Craig Bechtle predicted that it will take five more years for SMART Docs to achieve 20% penetration in the mortgage process.

The most significant benefit of imaging and data integration comes with pushing the technology out to trading partners, said Advectis president and CEO Greg Smith, a benefit achieved at low cost with Advectis's award-winning BlitzDocs product. He said the payoff comes not just with cost savings but by "bringing more business through the door" as trading partners come to rely on the ease-of-use provided by a system like BlitzDocs.