The Necessity Of Implementing The Mortgage Document Management System In The Business

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The Mortgage is a Legal document where the borrower transfers the title to the lender or to a third party trustee to hold as security for the lender. After the payment of the loan, the trustee transfers the title back to the borrower.

Mortgage document management is the most confusing and time-consuming part of a loan officer. A technology that saves valuable time and makes the experience free from any human error is a welcome fit in the technical industry. 

Before proceeding with the loan, several documents relating to income, credit reports, and several other documentation must be submitted and checked. All this manually increases the high risk of any failure or error which might lead to a loss.

Settlement and Closing Services: Title Professionals conduct the settlement of closing the property sale. The process requires 100 time-consuming steps, which include reviewing the contract or closing instructions, depositing loan funds, paying off prior mortgages, coordinating property inspections, preparing HUD-1 settlement statements, among many others. These professionals then coordinate and finalize documents, close the transaction, and submit pertinent documents for proper recordation in public records.

Why is Mortgage Document Management Needed?

  • Following up with the borrower constantly after the documentation proceedings is a tedious task. Reminders of any pending or extra documents required on phones or emails is a time-consuming task, not to mention the high follow-ups divert the company’s funds into something that does not require a long-term expenditure. 
  • Documents come in various forms, from email or in-person, which becomes hard to manage, especially when it’s not just one borrower the company is dealing with.
  • Not just the loan officer but even the customers dislike this system of documentation collection. The reason being they don’t really appreciate the constant calls even when they are in the middle of something. 
  • The information is often outdated and is not updated with recent changes but requires constant updating, but the manual touch often fails to miss the key details. 

A document Management System is a system that allows you to store and keep track of electronic documents. They are commonly referred to as social business software, social intranet software, or collaboration tools; these suites are ideal for businesses looking for a singular vehicle for day-to-day handling operation.

Here Are The Features To Look Out For In An Efficient Mortgage Documentation Engagement:

Smart organization:

Arranging documents among several others is a problematic task. As the company grows, it becomes tougher and tougher if it’s the growing stage of the business. Organizational hierarchy is one of the most important features to consider when choosing a document management system.

Cloud Access:

Cloud access is a must for every business that takes place online. It becomes easy to upload and download documents online. 

Attractive User Interface:

User documentation management system is used daily. The software must feature an attractive UI. Any document management system is hard on the eyes and difficult to operate is a no.

Regular updates in the business portfolio are necessary to keep up with the fast-paced technological advancement. Any technology that decreases the chances of manual errors should be implemented and brought into the practice of the business.