Document imaging has been a hot topic for some time now, but many companies have found these expensive systems difficult to integrate into their existing origination platforms. The idea of having every document in the mortgage loan file available as an electronic image is attractive, but since the vast majority of loan originators are still managing their business with paper folders, there hasn't been much pressure to implement stand-alone imaging solutions. Fraud mitigation may prompt more lenders to rethink that in the near future.

At the November, 2005 Mortgage Bankers Association (MBA) conference on "Legal Issues in Mortgage Technology" in San Diego, the technology of document imaging was mentioned on several of the panels as having created a "huge surge in the industry." In addition to the benefits of enabling an office to go paperless, conference attendees explored these systems' improved document search and retrieval capabilities and fraud mitigation uses.

Some companies have found document imaging to be a good tool for strengthening their ability to prevent income and asset documentation fraud. They are doing this by scanning in these documents and then locking them to prevent the information from being edited later. Scanning the documents provides an additional layer of security by creating an auditable trail at the same time it stores an image of the document that can later be retrieved and compared to data in the LOS.

Document Imaging Statistics

Electronic document imaging systems have lagged in the residential lending space relative to the commercial lending business. The MBA recently published its first ever Commercial Technology Survey report on August 31, 2005, to reflect the status of technology in the commercial real estate/multi-family mortgage industry. Among its many findings, the report indicated that 78% of those surveyed have launched electronic document imaging efforts.

Commercial loans tend to be very complex and can involve hundreds of documents; so, it makes sense that these systems would be employed there first. However, many in the residential mortgage industry now believe that document imaging will likely emerge as one of the primary technologies utilized in this part of the business as well.

The industry could benefit from the technology, but there is another reason it is likely to be embraced soon. Imaging system vendors have been working hard to educate lenders to the benefits of their systems for more than two years now. Mortgage lenders understand the benefits of imaging technology. Now, they just need a tool that's easy to use.

Document Systems, Inc. Provides Document Imaging Enhancements

Fortunately for DocMagic users, document imaging is now built-in. A new version of DocMaster (version 4.0) is scheduled to be released (in December, 2005) that will enable all customers of Document Systems, Inc. to use this technology easily.

While DocMagic collects specific loan data to process and generate loan documents, DocMaster is the software through which those loan documents may be accessed. (The user still has the option of viewing the documents in .pdf format.) However, in addition to providing printing, viewing and text annotation capabilities, DocMaster now provides the user with document imaging features as well.

By pulling down the "Tracking" menu item, DocMaster users can now capture paper documents from any TWAIN-compliant device and store them in one location by clicking on "Scan Images." Once the new driver is downloaded, which only takes a few moments, users can scan documents in with only a few clicks. Here are some tips for using DocMaster's new capabilities:

At the closing table: Fill your scanner's auto-feeder with the signed closing package and let DocMaster capture the documents. Select "Scan Images" under the "Tracking" pull-down menu. Images will be stored in a default folder inside the DSI directory. Find them under C:\DSI\LENDER\XFER\W0SAMPLE. Once stored as TIFF files by DocMaster, these files can be attached to an e-mail like any other file.

Let DocMaster handle your mail: DocMaster will also allow the user to scan and then automatically e-mail documents. To utilize this feature, enter your e-mail information by clicking on the "System" tab in the "Options" dialog box. Your network administrator can provide this information. After it's set up, simply choose "Scan and Email" under the "Tracking" pull-down menu and follow the simple on-screen instructions. Documents will be stored in a self-extracting .ZIP file and mailed to the recipient(s) of your choice.

Step-by-step instructions for using DocMaster's imaging functionality are posted online.
Click here to view those instructions.

DocMagic users should find the document imaging functionality in DocMaster to be easy and intuitive. However, should you have any questions concerning the use of our document imaging functionality, please contact Customer Support at (800) 649-1362.

Don Iannitti is President and CEO of Document Systems, Inc.