Mortgage post-closing is one of the most critical steps in the entire lending process. It is the stage where lenders receive signed/funded loan documents from different origination points and review them for regulatory compliance. The imp processes carried out during this stage include post-closing audits, trailing doc review, report a follow-up on trailing doc, shipping of loan files, and final document indexing.
All of these together make mortgage post-closing services very complex. Therefore, this stage demands stringent audits and reviews to ensure all the trailing documents are collated, processed, and adhere to all the investor guidelines. It is because of the complexities that the process is prone to errors. This along with other internal challenges further compound the challenges involved.
Challenges That Cause Post Closing Mortgage Process Setbacks
- Lenders must get their hands on trailing documents on a loan. This helps to retain the proper resale value of the loan in the secondary market. Failure to return trailing documents to investors invite financial penalties for lenders. However, for post-closing agents, it is an uphill task to send multiple emails and phone calls to title companies to request trailing documents. There is no guarantee of document receipt on time.
- Post-closing agents have to manually sift through multiple documents. They extract the necessary data and upload it in the required format in loan origination systems. They are also tasked with updating trailing documents status in the LOS. Such low-skill tasks consume almost half the day of a skilled post-closing agent.
- Title companies, lenders, and recording offices work in siloes. This creates difficulty for them to understand status requests received exchanged among them. It is particularly difficult for a post-closing agent who have to break through these siloes to trace trailing documents and chase the partner on trailing document status.
- Lenders, escrow companies, and other partners do not follow a standardized process. It means that while some rely on fax machines and physical documents, the rest use portals or emails to transmit documents. This makes the task more complex for post-closing agents who have to continuously switch between various platforms, email chains, and others to collect trailing documents.
How Automation Can Streamline Post Closing Mortgage Process?
Post-closing agents must properly execute and monitor multiple processes involved in mortgage post-closing. These processes include document management, indexing and stacking, trailing documents, collateral and file handling closure, and others.
However, doing this manually will slow down the entire process with high chances of human-led errors. This is why it is important that lenders combine human intelligence with automation to streamline post-closing mortgage process.
Here’s a look at how leveraging automation can translate into a streamlined mortgage post-closing process.
Managing and Tracking Trailing Documents Made Easy
Automation platforms create dynamic workflows. These workflows make it easy for post-closing agents to track, review, and manage trailing documents from all the stakeholders involved in the mortgage post-closing process.
- Creates workflows for collecting trailing document and tracking loan packages.
- Creates repackaging and sorting workflows as per investor requirements.
- Assists in proactive follow-ups with agencies for missing documents.
Seamless Document Management While Complying with Investors/Agencies’ Varying Requirements
Lenders can program automation platforms with document management best practices. Its assists post-closing agents to seamlessly execute their tasks while adhering to investors and agencies’ dynamic post-closing principles.
- Same-day loan closing package and post-close collateral reviews and exception clearing.
- Send prompt feedback to notaries and closers.
- Adhere to CFPB guidelines and update borrowers on timelines on fees refund if any.
- Conduct pre-sale audit that include reviewing exception resolution and credit files.
- Collate and deliver entire loan and collateral package customized to each investors/ agencies’ varying requirements.
- Track and review final documents.
Drive Post-closing Mortgage Process Improvements
Automated dashboards provide insights that help C-suite mortgage executives to undertake process improvement programs. This is critical to help post-closing agents track their KPIs. This is reflected on an overall post-closing mortgage process efficiency.
- Analyze if post-closing agents can keep up with loan document milestone timelines and portfolio reporting. This helps lenders to be sure about that particular loan’s sale ability.
- Correspondent settlement agent/lender performance scorecards provide actionable insights into performance metrics. This contributes to informed lending decisions.
- Leverage data insights post-closing stages to improvise pre-closing mortgage processes.
MSuite to Drive Efficacy and Streamline Mortgage Post-Closing
MSuite, is an intelligent and easy-to-use mortgage automation platform. It is powered by advanced machine learning and artificial intelligence algorithms. MSuite automates a range of tasks in mortgage post-closing process.
This automation platform is composed of five distinct modules which are connector, indexing engine, data extraction engine, rule engine, and reporting engine. These modules can either be used separately or together to execute post-closing mortgage process.
Connector
This component makes MSuite platform-agnostic. This means that MSuite can seamlessly connect through APIs to any kind of LOS or servicing systems used by title companies, investors, and other stakeholders involved in the mortgage post-closing process. MSuite gathers transactional documents as soon as those are uploaded into LOS.
At times, trailing documents are sent via emails. It is difficult for post-closing agents to keep track of every single email while juggling thousands of collateral packages in a day. Agents find it difficult to extract only the relevant transactional information from an email. MSuite’s connector module enables quick extraction of information from emails.
It continuously monitors hot folders in SFTP. Any new uploads trigger MSuite to extract documents relevant for the post-closing process.
Indexing Engine
When digital formats of collateral and loan package documents are transmitted across the stakeholders, there are chances of document quality getting compromised.
MSuite’s indexing engine was designed keeping these probable document quality issues in mind. It can process more than 350 types of documents in varied formats. OCR combined with intelligent AI and ML algorithms enable MSuite to classify documents with a scan quality score as low as 150 DPI. All this is done while maintaining over 95% image accuracy.
Data Extraction Engine
MSuite’s data extraction engine exempts post-closing agents from the time-consuming task of extracting data from collateral package and other closing documents. It automatically extracts relevant data points and stores those in digital formats in lenders’ LOS.
The data extraction engine guarantees over 98% data accuracy with exception handling for data points that have an OCR confidence score less than 90%.
Rule Engine
The rule engine enables lenders to program MSuite with post-closing audit rules. It lets the machine to automate post-closing QC audits to evaluate loan application completeness, accuracy of underwriting documents, collateral eligibility, and others.
MSuite can manage thousands of rules at a time. Its rule engine can be customized every time it is deployed based on individual lender’s post-closing QC rules.
MSuite’s rule engine is easy to maintain. It automatically updates itself to stay at par with dynamic regulations and scale up to lenders’ business requirements.
Reporting Engine
This automated platform generates reports that provide insights into execution and quality level maintained at each stage of post-closing mortgage process. These insights are analyzed by lenders to improvise processes that were flagged.
These reports can be customized to match each lender’s operational requirements.
Why Do We Recommend MSuite for Your Mortgage Operations?
In most cases, technology companies build mortgage automation platforms based on assumptions on the mortgage industry. Assumptions do not make a product aligned to mortgage industry’s ground reality.
We, at Expert Mortgage Assistance have served over 100 lenders with mortgage post-closing services. This made us familiar with the simple and complex post-closing challenges faced in the mortgage industry and the ways to deal with such challenges. We have leveraged such first-hand experience to build our proprietary automation platform, Msuite. This is why we recommend MSuite because we know that this automation platform will be functional in leveling up your post-closing functions despite modern day mortgage industry challenges.
MSuite is based on an automation-as-a-service business model. This means that you need not make a large upfront investment, neither do you have to be bound by a long-term contract. You can avail this cutting-edge automation solution by making a minimal upfront investment.
You need not modify your legacy infrastructure to use MSuite. It is designed to seamlessly integrate to any IT infrastructure. Our IT team takes care of all your implementation and customization needs.
Who We are and Why are We Considered as an Industry Expert?
This article is authored by industry veterans at Expert Mortgage Assistance, a leading mortgage post-closing services provider. We use technology and human expertise to close more than 10000 loans in a month. Our end-to-end mortgage post-closing services include trailing document retrieval, post-closing mortgage loan package assembling, post-closing data audit, among others.
Get in touch with us to discover how MSuite can accelerate and streamline your current mortgage post-closing process.
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