Paperless Lending Made Easy: Streamlining the Loan Management Process. Presented by: David Geddes Manager, Sales Operations

Paperless Lending Made Easy:

Streamlining the Loan

Management Process

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

Why Paperless Lending?

Moving towards paperless will:

– streamline your lending process – reduce costs, and

Business Challenges

• Processing loans is more complex • Increased workload

• Longer approval cycles • Higher operating costs

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

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

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

Paperless Lending – The Process

Customer access via 3rd

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

Compile Verify Approve Upload via ECM _integration

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

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

Considerations for Paperless Lending

1. Working with digital signatures 2. Borrower signing process

3. Dealing with hardcopy files

1. How Digital Signatures Work

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

Increased Security with Digital Signatures

• Digital signature technology

prevents altering of documents

• Icons show the validity of a

Increased Security with Digital Signatures

Increased Security with Digital Signatures

• Can affect the

order of operations

• Can affect the

order of operations • May require some

re-design on the workstation

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

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

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

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

Apply the “5 Easy Steps for DM

Deployment”

• Business Assessment • Identify & prioritize

• Take a phased approach • Benefit realization

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

Next Steps

• Include your LOS provider in your planning

• Understand the hardware & software requirements • Optimize the overall business process for

paperless lending Other Resources:

Contact:

David Geddes

[email protected]