Mobile Document Capture Can Lower Mortgage Underwriting Costs

Providing a multichannel approach to collecting borrower information can lower costs and provide a better customer experience, according to document capture technology developer Kofax.

Presenting at the Finovate conference ongoing this week in New York, Kofax detailed how its online dashboard helps mortgage originators track borrower ratings of lender interactions, as well as the cost per document for collecting different pieces of borrower verifications—broken down by both document type (like identification, credit check and proof of address) and capture method (like mobile phone picture, in-branch scan and email).

"It's about right channeling and engaging with customers where they are," said Bruce Orcutt, Kofax senior director of product management.

During the seven-minute presentation, Kofax said an ideal target cost for document capture is 10 cents per document. But for many lenders that require borrowers to deliver documents to branch locations, the costs of collecting the data can run as high as $5 per document.

Kofax provides lenders with mobile technology that's integrated into the depository's existing mobile banking app and branding. When a borrower submits a document like a W-2 by taking a picture of the document with a smartphone camera, the Kofax technology classifies the document type, extracts the data and runs it against the lender's business rules. Depending on the results of the review, the software can prompt the borrower to provide additional information.