Your Fast Track to Clean Data

To avoid loss and maintain profitability in today’s challenging mortgage market, servicers cannot afford to let bad data find its way into their processes. That’s why servicers focus on assessing loan data quality and making necessary corrections early in the loan boarding process. Assessing loan data quality typically requires servicers to compare the electronic files and paper files they receive from the sellers to make sure the information is consistent. Of course, going through every single file and making necessary corrections can be quite time-consuming.

For example, a servicer may need to confirm hundreds of data fields that are located on dozens of screens within their servicing system before it can start servicing a loan. Locating all of the information that must be compared in the servicing system can be slow and cumbersome. That’s why technology solutions like LPS Desktop™ Data Validation Module are creating impressive efficiencies and allowing servicers to save time and money in areas like these.

When servicers receive electronic loan files, they are loaded into a servicing system like the LPS Mortgage Servicing Package (MSP). These files have likely filtered through a variety of processing systems prior to this point and, as a result, the data may be compromised. Incorrect information such as interest rates, first payment dates and prepayment penalty terms can clearly affect servicing from a monetary perspective, while details like name and address can impact the servicer’s ability to service the loan at all.

For efficiency, servicers work from the electronic files; however, the information on the paper files is deemed to be most accurate. So, servicers need to look at the electronic and paper files side by side to verify accuracy before moving forward with their processes using the electronic information. With solutions like LPS Desktop Data Validation Module, much of that process is automated, enabling servicers to quickly validate, edit and enter data as necessary. Servicers use the module to identify which data elements they want to verify and set up their related workflow commands. Then they scan and upload the paper loan files into a document management repository within the module. Through a direct interface to their servicing system, the corresponding electronic loan files are pulled into the LPS Desktop Data Validation Module.

Once the electronic and paper files are available in the LPS Desktop Validation Module, servicers pull up the data elements from the electronic file and the matching digitized document. Both sets of information are displayed on a split screen. From there, servicers perform visual validation, quickly comparing the data elements against the digitized document image to confirm accuracy and make changes as required. This single screen comparison enables servicers to significantly reduce the amount of time required to validate new loan data.

For servicers seeking an even greater level of automation, the LPS Desktop Data Validation Module offers exception-based processing. Exception-based processing classifies the digitized documents and extracts the servicer-identified data elements using OCR technology and human intervention. When servicers opt for this type of processing, the system automatically compares the extracted data to the data that was imported from the servicing system. Only the data fields that do not match up are routed to pre-determined queues for manual handling.

Servicers can also utilize the LPS Desktop Data Validation Module to simplify the data entry process even when comparisons are not necessary. For instance, a servicer may receive an ACH form that needs to be entered into the servicing system. The split screen display showing the digitized document and the data form in need of completion enables the servicer to complete the data entry task more quickly.

Regardless of how servicers choose to validate their information using the LPS Desktop Data Validation Module, they all benefit from the real-time servicing system updates the module provides. With a direct interface between the systems, servicers no longer have to wait a day or longer for changes to be uploaded into their servicing platform. As a result, all departments that access the servicing system are working with the “cleanest” data available, reducing errors, improving process efficiency and minimizing risk.

Servicers gain productivity and efficiency benefits because this module helps them better manage critical and required documents. Pre-determined workflows in the system assist them with determining which document types they need to begin the loan servicing process. This facilitates better communication about critical and required documents and eliminates duplicative efforts to track down such information.

Another benefit is that the LPS Desktop Data Validation Module enables any employee to be trained on data validation. Since intimate knowledge of the servicing system is not needed, servicers can have employees up and running right away, eliminating time and expense from the process.

Furthermore, the LPS Desktop Data Validation Module helps servicers make better decisions regarding the loan files they will accept in the future. The system analyzes the loan information coming in from various sellers and provides reports that reveal which sellers provide the “cleanest” electronic data. With this information, servicers can opt to work with sellers that provide better quality data up front, greatly reducing the amount of clean up required by their organization.

Inaccurate or incomplete information hinders any process and fuels loss potential. Servicers must have an efficient way to assess the quality of the loan data they accept and quickly make corrections when necessary. The LPS Desktop Data Validation Module provides the automation servicers need to speed up the data validation process with the flexibility to meet the unique needs of each organization.

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