#MORTGAGE OCR TOOL DRIVER#

This will help mortgage lenders in several ways:įaster time to close: Most lenders implementing the latest OCR technologies with AI can expect to see at least a 30% reduction in document processing times. This automation alone should shave several days off the average origination cycle.īetter use of staff time: Most lenders struggle to keep their senior processors and underwriters working on the highest-value activities for credit decisioning. Paper processes continue to use too much of their time for routine tasks. Instead, staff can review only the documents that are identified as problematic by the AI system. Document AI can automate indexing, extraction, and filing, sparing lenders the tedious business of manually processing most documents. Think about the countless hours spent reading documents to identify the document type and then indexing them into the appropriate files, or reviewing income documents and keying in the data. The value of document AI to the mortgage industry is simple: it automates document processing. How document AI can transform the mortgage cycle Businesses can use these to harness the power of AI with minimal effort and technical capability, so they can put the technology to work for them faster. Fintech providers and major cloud service providers have created pre-built AI models that operate in the cloud, trained on millions of pieces of data.

#MORTGAGE OCR TOOL DRIVER#

While AI advancement is the primary driver of the improvements, they are fuelled by a substantial increase in computing power using cloud technology. For example, they can now process bank statements from multiple banks and identify the required data elements with impressive accuracy. Most everyone is already familiar with neural networks as they are used in facial recognition, virtual assistants like Alexa and Siri, and self-driving cars. They have many other uses, one of which is to recognize information in mortgage documents, identify and classify the document types, and extract key data elements from the documents. These modern solutions have evolved such that information can be identified even if it is organized in different ways.

As computing power has grown, so has the sophistication of these networks and their ability to automate more complex tasks. This is mainly due to the expansion of what is referred to as machine learning neural networks-algorithms designed to mimic how the human brain processes information. What document AI does for mortgage lendersĪfter decades of slow development, AI has evolved into a far more powerful tool in the last few years. Today’s technology can read and identify information in documents at accuracy and confidence levels never seen before. To tackle this problem, lenders need to take advantage of the latest AI technologies-particularly from machine learning and natural language processing vendors that are offering vastly improved OCR. Capturing the fickle millennial market requires lenders to compete on experience, quality of service, and speed.

A growing proportion of homebuyers are from a generation of digital natives, who expect transactions to happen without hiccups. However, they do expect efficient service and are frustrated when back-and-forth paperwork delays take weeks. A mortgage typically facilitates one of the most important purchases of borrowers’ lives, so they don’t expect to close their loan in a matter of minutes or hours, like they do when getting approved for personal credit. Mortgage lenders have until recently not benefited from the AI-driven increase in speed and efficiency that has occurred elsewhere in the financial ecosystem. The latest advancements in AI can cut the lengthy mortgage origination cycle significantly and reduce errors. They have little in common with early optical character recognition (OCR), which was able to classify only very simple and structured documents.

Today’s advanced AI solutions are changing that perception. In the mortgage industry, early adopters of document automation technologies were underwhelmed with the results of their investment.

Mortgage ocr tool