In the fast-paced world of lending, quickly and accurately handling Independent Sales Organization (ISO) applications is key. These applications are Important in the underwriting process, giving lenders essential insights to judge a borrower's creditworthiness and loan eligibility. As the financial sector grows, lenders are always looking for ways to speed up loan approvals without skipping thorough checks.
In this blog, we'll look at the importance of ISO applications, what lenders look for in these documents, and two ways to process them faster: manual processing with helpful tips and using advanced document processing software.
Understanding ISO Applications
ISO applications serve as an important means of information for loan underwriters. They usually have personal and financial details about the borrower, like credit history, job information, income, debts, and why they need the loan and also decide the risk of lending to someone for underwriters. The challenge is handling these applications in different formats, such as paper, digital files, or mobile apps. Traditional Optical Character Recognition (OCR) solutions often struggle with this variety, leading to manual data entry, which is slow and error-prone.
Let’s dive deeper in Manual Processing method versus Intelligent Document Processing Software to help lenders process ISO applications more effectively
A Guide to Manual ISO Processing
Manual processing is still common in many lending institutions, particularly those not yet digitally advanced. For new loan underwriters, handling ISO applications manually can be tough. But these tips can make it easier:
- Organise and Prioritise: Set up a system to sort applications as they come in. Prioritise them based on loan size, urgency, or other relevant criteria to help manage the workflow better.
- Checklist Approach: Make a detailed checklist of all the information to verify in an ISO application so nothing important is missed during the review.
- Cross-Referencing: Always double-check the application details with supporting documents and spot any discrepancies that might suggest fraud or mistakes.
- Time Management: Set aside specific times for processing applications, which helps you focus and reduces errors from tiredness or distractions.
- Continuous Learning: Keep up with the latest industry rules and compliance needs for accurately assessing applications.
How Intelligent Document Processing Transforms Loan Processing?
The second method is using intelligent document processing software. This technology is widely used by lenders, as it can quickly pull and process information from ISO applications, no matter the format. Here's how it changes the loan approval process:
- Speed and Accuracy: The software uses advanced algorithms to identify and pull out key data from unstructured documents which helps in cutting down on manual data entry time and reducing mistakes.
- Fraud Detection: By comparing the extracted data with other loan documents, the software can spot inconsistencies and possible fraud which ensures a safe lending process.
- Compliance Checks: The system automatically checks that all information and documents meet regulatory standards, giving confidence to both lender and borrower.
Our Recommendation
When selecting document processing software, lenders should seek solutions capable of handling unstructured documents, as ISO Applications often come in various formats without a fixed template. The software should be tailored to the specific needs of the mortgage loan processing workflow, ensuring it addresses the industry's unique requirements.
Vaultedge Document AI is a purpose-built solution for the mortgage industry, standing out as a robust option for lenders. It excels in managing unstructured documents and provides a comprehensive end-to-end loan processing solution. With advanced document management features, it utilises AI and machine learning to extract, classify, and validate data from diverse mortgage documents. Vaultedge's powerful OCR capabilities and custom-built models guarantee accurate data extraction from both structured and unstructured documents. Designed specifically for the lending industry, Vaultedge leverages large language models trained on millions of mortgage documents. It not only classifies documents but also extracts valuable information, streamlining lending processes. Its adaptability to various document formats accelerates loan processing, resulting in faster closings and enhanced customer satisfaction.
In summary, efficiently processing ISO applications is vital for lenders to finalise loans quickly and stay competitive. While manual processing can be improved with smart practices, the future is in adopting intelligent document processing software. This technology not only makes the approval process smoother but also boosts accuracy, spots fraud, and ensures compliance. As the lending industry evolves, those who embrace these advanced solutions will be at the forefront of providing fast and reliable financial services.