HELP­ING TO OVER­COME LOAN SER­VIC­ING PAIN POINTS WITH SMART BUSI­NESS PRO­CESSES

Michele Rothkin, Fi­nan­cial Ser­vices In­dus­try Mar­ket­ing Spe­cial­ist, Canon U.S.A., Inc.

National Mortgage News - - Editor’s Desk -

Achiev­ing ef­fi­ciency, access con­trol, and sus­tain­abil­ity goals in pro­cesses for on­board­ing loans, billing and pay­ments, and loss mit­i­ga­tion can pose a huge chal­lenge for loan ser­vicers. Canon’s busi­ness process au­to­ma­tion prod­ucts and ser­vices can help.

Loan ser­vic­ing can be a dif­fi­cult busi­ness that of­ten in­volves com­pli­cated doc­u­ment and data work­flows across the loan cy­cle. But a few stages of the cy­cle stand out for their par­tic­u­lar com­plex­ity and the need for ef­fec­tive pro­cesses to help man­age them ef­fi­ciently, and to ful­fill in­creas­ingly rig­or­ous sus­tain­abil­ity ob­jec­tives and lessen se­cu­rity risks.

When on­board­ing loans, ser­vicers fre­quently con­tend with doc­u­ment and in­for­ma­tion flows from mul­ti­ple orig­i­na­tion sys­tems. Bulk trans­fers of loans can involve in­com­pat­i­ble ser­vic­ing plat­forms, with doc­u­ments and data de­liv­ered in for­mats and struc­tures that have to be rec­on­ciled. Miss­ing doc­u­ments can dis­rupt down­stream pro­cesses, in­clud­ing fore­clo­sures, and can cre­ate prob­lems dur­ing a loan hand­off, which can alien­ate cus­tomers.

A sur­vey of in­dus­try pro­fes­sion­als shows that billing and pay­ments con­tinue to involve a con­sid­er­able amount of man­ual work. Escrow com­pu­ta­tions for prop­erty taxes and in­sur­ance can be es­pe­cially chal­leng­ing, and of­ten involve a steady flow of doc­u­ments and in­for­ma­tion be­tween ser­vicers and third par­ties.

Loss mit­i­ga­tion can strain sys­tems built largely for per­form­ing loans. Loan mod­i­fi­ca­tions es­sen­tially repli­cate the doc­u­ment bur­den in­volved in the un­der­writ­ing, with ad­di­tional con­straints im­posed by reg­u­la­tory pro­tec­tions for trou­bled bor­row­ers and in­vestor guide­lines about how to pro­vide re­lief, whether mon­e­tary or in terms of ex­tended time to re­pay. When fore­clos­ing on a loan, doc­u­ments must be ac­ces­si­ble and ser­vicers must fol­low care­ful pro­ce­dures.

In on­board­ing, billing and pay­ments, and loss mit­i­ga­tion, busi­ness process au­to­ma­tion can help ser­vicers ra­tio­nal­ize and stream­line work­flows. Doc­u­ments and data de­liv­ered to ser­vicers across modes – email, fax, in­ter­net por­tals, or hard copies that have to be scanned – can be cap­tured, stored, shared and pro­cessed in a user-friendly en­vi­ron­ment. Busi­ness process au­to­ma­tion helps give ser­vicers a clear pic­ture of their hold­ings of doc­u­ments and where those doc­u­ments are in the pro­cess­ing cy­cle. Au­to­mated alerts and no­ti­fi­ca­tions can help ser­vicers keep their pro­cess­ing tasks on track. Man­agers can use dash­boards and data an­a­lyt­ics to help mon­i­tor ac­tiv­i­ties and per­for­mance both for in­di­vid­ual em­ploy­ees and the or­ga­ni­za­tion as a whole.

More­over, as the risk of cy­ber­at­tack grows and pro­tect­ing con­sumer pri­vacy be­comes more im­por­tant, busi­ness process au­to­ma­tion of­fers pow­er­ful se­cu­rity fea­tures. Sen­si­tive con­sumer in­for­ma­tion pass­ing through the com­po­nents that make up an au­to­mated busi­ness process sys­tem can be safe­guarded by en­cryp­tion and other mea­sures. Doc­u­ment access can be re­stricted to au­tho­rized per­son­nel and tracked by user, which can cre­ate an au­dit trail that can help firms spot and de­fend against ma­li­cious be­hav­ior.

Ca­pa­bil­i­ties like doc­u­ment en­cryp­tion and access con­trol are vi­tal for firms try­ing to ad­here to de­mand­ing new con­sumer pri­vacy stan­dards. The Euro­pean Union’s newly en­acted Gen­eral Data Pro­tec­tion Reg­u­la­tion re­quires that com­pa­nies keep a com­plete in­ven­tory of the in­for­ma­tion they have on EU con­sumers, and con­trol and mon­i­tor who uses it.

Fur­ther, busi­ness process au­to­ma­tion en­ables users to set rules and poli­cies to con­trol print­ing and doc­u­ment access that can help re­duce print­ing costs and re­source waste. Unchecked, there is a ten­dency for people to print out pages and pages of un­nec­es­sary doc­u­ments as a safe­guard. Busi­ness process au­to­ma­tion can help ser­vicers track and re­strain print­ing us­age – by log­ging ac­tiv­ity by depart­ment, for in­stance, or in­sti­tut­ing rules on color print­ing ver­sus black and white – and help them meet sus­tain­abil­ity ob­jec­tives. ■

To learn more, please visit: usa.canon.com/ad­vanced­so­lu­tions­for­fi­nan­cialser­vices or con­tact Michele Rothkin at mrothkin@cusa.canon.com

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