Paradatec’s Mark Tinkham authored the following article from the April 21, 2018 issue of Progress in Lending.
How Digital Can Drive Down Costs
In this era where smartphone and tablet usage permeates nearly all of life, it
only seems logical that the purchase of a home would eventually move in the
digital direction as well. This certainly creates a situation where the loan
package can be digitally moved with minimal cost rather than printed (multiple
times, most likely) and physically moved between geographies. Therefore,
processing delays associated with in-transit time and cost can be reduced,
improving the overall process for both lender and borrower.
However, while borrowers may be able to upload copies of their paystubs and
bank statements for example, the data must still be gleaned from those
documents as part of the underwriting process. Without the aid of
sophisticated OCR, that gleaning process remains a manual process, even
though the mortgage is “digital”.
With the costs to process each mortgage continuing to rise, lenders must
leverage automation to improve profitability and consistency in their business
processes. With advanced mortgage OCR solutions, mortgage companies will
reduce their level of manual document indexing and data entry activity,
enabling them to process more loans per day at a lower cost per loan –
yielding a leaner process and increased profit margins.
Paradatec’s Advanced Mortgage OCR solution does more than just convert
document images to text. Once converted, that text is then processed by our
artificial intelligence (“AI”) rules engine in the same way a human being would
process the content. Based on these rules, documents are automatically
indexed and relevant data points are extracted. This information is then
passed to downstream applications for appropriate routing, decisioning, and
Our process begins with a full-page OCR scan of each image, typically
completed in less than one second per page. This high-speed performance
allows every word on the page to be included in the scope of the AI rules
engine analysis, just as a human being would interpret the content. This
content evaluation process is unique to Paradatec in terms of the combination
of speed and ability to include all page content in the evaluation scope,
thereby making it extremely flexible with documents of varying layout (for
example, bank statements).
Other OCR solutions typically expect relevant data points to consistently
appear in the same locations (or ‘zones’) on a document. If the data shifts due
to changes in layout (again, think of bank statements), the zone-based
approach will fail unless another layout template is created, making for a
greater administrative burden with these solutions.
A high volume, scalable OCR automation initiative requires the flexibility of
Paradatec’s Advanced Mortgage OCR solution to process an unlimited
number of document layouts without needing to develop specific templates for
each layout variation. This capability is unique to Paradatec and a vital feature
for creating an effective unstructured document classification and data capture
Applying the right technology in the digital lending world can drive down cost
providing lenders with a significant competitive advantage.
You can download the original article here: