Groundbreaking new product automates document processing and streamlines servicing onboarding for mortgage servicing rights
April 15, 2021 — Jacksonville, FL — LoanLogics, a recognized leader in loan quality technology for mortgage manufacturing and loan acquisition, has released LoanLogics IDEA™ for MSR Transfer, a new solution that automates document processing and data extraction for mortgage servicers and banks when acquiring mortgage servicing rights (MSR).
Typically, MSR sellers have had difficulty meeting the delivery requirements of different buyers, which results in buyers having to spend extra time and effort when transferring loan documents and data into their servicing and document management systems, often keying in information and restacking documents manually. These time-consuming and labor-intensive processes drive up costs and create delays, which can impact a timely MSR transfer and the borrower experience.
LoanLogics IDEA for MSR Transfer normalizes document naming and stacking order across any number of sellers to streamline MSR acquisitions and creates an automated repeatable process to onboard loans into a buyer’s servicing system. Using highly accurate, machine learning-based automated document recognition (ADR) technology and automated data extraction (ADE), the solution can extract data from more than 700 data fields on more than 30 most common critical loan documents for MSR acquisition.
LoanLogics IDEA for MSR Transfer also includes critical document logic with over 100 tests that perform required document checks, document execution validation, document to data tape and document to document comparisons, an evaluation of document completeness, and more. The final output contains the documents provided in a predefined stacking order with a single naming convention and a standard XML file export with a complete data tape and identification of discrepancies.
“In our view, there are no real standard processes in any aspect of MSR transactions,” said Andrew T. Weber, founder and president of Marlin Mortgage Capital. “Our decision to leverage technology from LoanLogics was driven by a desire for efficient data and documents standardization, which simply was not available from other document processing vendors in the industry. As we scale our use of this product, we hope to amass an accurate data repository to power servicing analytics for monitoring and oversight with our partner, Procredio.”
In creating IDEA for MSR Transfer, LoanLogics leveraged best practices from processing significant volumes of MSRs as well as its experience validating critical document sets of several of the largest MSRs buyers in the country. The company’s product roadmap includes the development of a seller portal that will facilitate counterparty communications. In addition, the product will be integrated with LoanLogics’ LoanHD® loan quality management platform to support pre-purchase reviews and servicing onboarding audits.
“IDEA for MSR Transfer has the potential to revolutionize the MSR market,” said Dave Parker, chief product officer at LoanLogics. “For too long, sales of servicing rights have been bogged down by wide disparities in how loan files are handled and exchanged. IDEA for MSR Transfer eliminates these bottlenecks and provides a consistent, faster and more cost-effective process for both counterparties. There’s nothing else like it.”
Founded in 2005, LoanLogics is a provider of mortgage audit software and document processing automation. This data-driven digital technology improves the transparency and accuracy of the mortgage process and improves the quality of loans. The company’s capabilities and audit services help residential mortgage lenders, servicers, insurers and investors validate compliance, improve profitability and manage risk during the manufacture, sale and servicing of loan assets. LoanLogics leverages the latest methodologies in cloud computing and machine learning technology to deliver greater value for our clients. To learn more, visit www.loanlogics.com