CARSON CA, August 1999 - The mortgage industry is one of the most paper intensive businesses on the planet, and for years people have been talking about using technology to create a paperless environment.
Toward that end, Document Systems Inc, has released DocMagic7,0 for windows, the latest version of it's document preparation software.
All of the paper documents are a necessary part off the process, admitted Don Iannitti, chief executive of Document Systems. What results, however, is a blizzard of paper that will wind up in a warehouse, most likely never to be seen again. "The mortgage industry is rapidly coming to the digital age," he said. However the price tag for the technology has been high, while its simplicity and ease of use low. With the latest version of DocMagic, "leaders get an easy-to-use, sophisticated imaging package built right in, at no extra cost."
Until now, Mr. Iannitti said, imaging had to be done with very expensive equipment, making it prohibitive (from a cost standpoint) for most mortgage companies.
A scanner reads a barcode that is placed an each page, which allows the documents to be quality controlled, tracked, sorted and filed from a desktop computer, which largely eliminates the need for paper handling.
There are many lenders still creating loan documents in-house, he said, despite the cost and efficiency handicaps. Some are doing it for the fee income and profits, but most don't want their originators getting involve in the process due to the likelihood of error. "With technology changing so fast, most lenders are a generation or two behind the curve. One of the reasons for our growth is that we are able to deliver a set of docs in as little as 30 seconds, with bulletproof accuracy, at prices that are competitive with even the largest mortgage."
"So we've taken what used to be a slow, paper and labor intensive process, and automated it to the point where it is now the fastest, most efficient part of the lending process," Mr. Iannitti said. To meet the needs of those to check the broker's closing documents before signing, Document Systems created a system which automatically emails a duplicate set to the lender even as they are printing out at the broker's office. By doing this, if there were a problem, it could be corrected before the documents were given to the borrower. This safeguard was built in to the process without interfering with the turnaround time.
Mr. Iannitti did state "as far as I know there has never been an error, so checking those emails must be the loneliest job this side of the Maytag repairman."
If changes need to be made, they can be done while the customer is on the phone. For changes that affect all or multiple clients, the system is setup on a "one-change, all-change basis." Every time a client logs on to DocMagic, their system is automatically upgraded with the current change.
The upgrade capability is particularly helpful for updating the section 32 (high cost mortgage) index. Document Systems updates DocMagic on the 15th of every month, and at the same time issues the new information to all computers on the system.
"You'd be amazed at how many mistakes that saves, to say nothing of the time and expense," he said.
Mr. Iannitti believes the future of the mortgage business is strictly digital. Just as the Internet is fast revolutionizing the origination process, imaging technology is changing the way documents are handled, processed and stored.