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According to a Freddie Mac report, the US home purchase mortgage originations are expected to grow to 2.2 million dollars in 2023. With the market devoted to mortgage loans multiplying so fast, loan applications will surge. As a result, the traditional way of loan processing will be ineffective in handling large volumes of loan applications. With so much documentation, the task will become painstakingly tricky for lenders to check and validate data without committing any error. The overall delay on the part of lenders will further delay the approval process. Therefore, to eliminate all this hassle, automating the loan processing with IDP is essential. IDP, or Intelligent Document Processing, speeds up credit rating determinations by controlling the flow of information throughout the process. It further lowers the documentation errors prevalent in traditional loan processing methods. Now that you know the basics, let us delve deeper into the challenges of traditional methods and see how Piazza Consulting Group's vast expertise in IDP can help you. Challenges of Traditional Mortgage Processing For most lenders manually going through loan applications, the entire process is like a hurdle race. While they cross one hurdle, they come face to face with another. Below are the three most difficult hurdles that lenders face while processing loan applications manually: Reducing Turnaround Time Even though the entire loan processing process is complicated, the end user always demands speedy results. Thus, lenders must be quick in ensuring that loan applications are within the compliance framework. But completing the entire process manually is far more challenging than anybody can imagine. Finding Competent Resources At the onboarding stage of the mortgage, the lenders must assess the borrower's finances before moving further. This process is called the pre-underwriting stage in loan processing. To conduct it smoothly, lenders must find experienced professionals who can effectively execute the process. Otherwise, the loan file may be rejected if the forms are not properly completed or the titles and papers are not adequately examined. Minimizing Human Error Assuming that the consumer completes an application and satisfies all requirements in the pre-underwriting process, the next challenge is to overcome data management issues. From entering information into the banking system to uploading information from the supporting documents, each stage gives rise to the possibility of committing errors when entering data manually. With each cumbersome step in the loan process, the approval lingers. It is why AI-based document processing technologies like IDP have come to rise. They can dramatically shorten the entire cycle time for loan processing by categorizing, extracting, and validating data from loan papers. Consequently, lenders may swiftly and accurately accept or refuse loan applications without wasting time. All-in-all, it can lead to a considerable increase in throughput and loans handled, resulting in significant financial benefits for lenders. The Rise Of Intelligent Document Processing With a projected 175 trillion gigabytes of data to be maintained globally by 2025, businesses will need a simplified approach to manage physical and digital data records. It is where IDP becomes crucial in today's time. IDP is a game-changer for the finance business, especially the mortgage sector, with its end-to-end document processing, validation, and extraction advantages. By implementing IDP in your loan processing, you can accelerate document processing, improve data accuracy, and reduce the overall timeline of loan processing and approval. Moreover, you can quickly capture application forms and extract the data required for mortgage pre-processing tasks. Overall, streamlining loan processing through IDP can offer big-time cost advantages to lenders in a world where mortgage compliance regulations are growing tighter. To sum it up for you, mortgage lenders will benefit in the following ways from IDP: · Faster time to process the applications. · Better use of staff time. · No errors and zero manual intervention. · Manage unstructured data. · Reduced time and cost in operations. So, it is time to uncover how IDP can transform your lending business if you want to gain a superior edge over your competitor.