Capsilon Corporation, San Francisco, CA
Company:Capsilon Corporation, San Francisco, CA
Company Description:Capsilon is a provider of comprehensive cloud-based document management solutions that enable mortgage lenders and investors to increase productivity and lower costs, while ensuring compliance. The company’s flagship product, DocVelocity®, is an imaging solution that provides document capture, collaboration, delivery and retention, eliminating the inefficiencies inherent in paper-based processes.
Nomination Category:Company / Organization Categories
Nomination Sub Category:Technical Innovation of the Year - At Organizations With Up to 1,000 Employees
Nomination Title:Using Capsilon’s Automated Data Extraction in the Mortgage Industry To Reduce Total Loan Production Costs While Ensuring Compliance
Tell the story about this nominated innovation since January 1 2014 (up to 650 words). Describe how the innovation was discovered, developed, refined and/or deployed. Provide an assessment of how the innovation has impacted or will impact your organization, your industry, markets or society.
Since the bubble burst in 2008, the housing industry has seen close to 1,000 compliance changes from multiple agencies, with no end in sight. The mortgage industry is struggling with increased costs and loan delays associated with complying with new and ever-changing regulatory requirements. As the industry adds staff or outsourced labor to deal with compliance-related issues, total loan production costs are soaring, and profits are suffering.
As today’s lending environment becomes more complex and regulated, traditional mortgage document management models pose a significant hurdle for maintaining quality control and controlling costs throughout the lifecycle of a loan. And, legacy Loan Origination Systems (LOSs) and other technologies have failed to keep pace with the amount of automation required to cope with the rising cost of loan origination.
Several of our largest customers came to us asking for a solution to this complex and costly problem. To address their needs, we developed an innovative Automated Data Extraction and Validation capability that was introduced with the most recent release of Capsilon DocVelocity®, our flagship solution for mortgage document and data management. We worked very closely with the operations team one of our customers, a top 20 mortgage lender, to develop and refine the capability and associated workflow.
Leveraging our patented Automated Document Recognition technology, our Automated Data Extraction (ADE) technology is significant to the entire mortgage industry because it addresses the key issues facing the mortgage industry today. Automatically extracting critical loan data for automated analysis in rules engines reduces loan turn times, eliminates costly labor, eliminates data integrity issues, and helps manage compliance.
Recently, Capsilon announced its vision for straight-through processing of mortgage loans, where a technology-enabled model is used to extract data from loan documents to move quality control to the front of the loan process. A straight-through processing model dramatically reduces loan origination costs, increases the efficiency of the overall origination process, and reduces origination mistakes that lead to costly loan buybacks and regulatory penalties.
Capsilon DocVelocity 9, which was released in October of 2014, includes a number of innovations that help make straight-through processing a reality, namely, our ADE technology. Capsilon worked with several of our large customers to define the data they need to enable rich data-driven audits, and leveraging a common set of mortgage documents and associated data, DocVelocity now automatically extracts the required data from a variety of documents for use in automation engines.
This breakthrough technology offers a powerful alternative to current approaches to access, validate and evaluate critical loan data. The “stare and compare” approach commonly used today, which relies on in-house staff or outsourced labor to visually compare data across multiple documents as a means of verifying loan information for accuracy and completeness is costly, slow, and error-prone. Compared with this approach, using Automated Data Extraction and Validation standardizes the process, increases productivity, lowers cost, and minimizes quality risks. And, it has the added benefit of optimizing the time of the lenders’ most valuable employees. For example, an underwriter might only be involved to verify flagged “exceptions,” so she can spend her time where it’s most valuable – underwriting more loans.
Because our solution is developed specifically for the mortgage industry, the extracted data is automatically transformed into and saved as Mortgage Industry Standards Maintenance Organization (MISMO)-compliant data points in the electronic loan folder for quick referral at any time during the life of the loan. Links to the original document from which the data is extracted are always maintained, so it’s simple to track back to the “source of truth” for the data. No other solution on the market includes these critical capabilities.
Two of the ten largest lenders in the United States have already adopted our ADE technology to minimize labor costs, improve the overall quality of loans, and get loans to underwriting faster, and we have active projects with several more large lenders.
In bullet-list form, briefly summarize up to ten (10) chief characteristics or benefits of the nominated innovation.
• Reduces labor costs up to 80% by automating quality control (QC) and loan evaluation/analysis.
• Gives lenders the ability to perform QC throughout the loan process, and on every loan, not just a sample. (Currently, QC is done after funding, and only on approx. 10% of the loan files.) This results in higher loan quality and better decision-making.
• Enables staff to focus on validating data values rather than scanning through numerous document images to find data and compare it, which is time-consuming and error-prone.
• Dramatically improves the speed in which loan files get reviewed. One of our customers reduced loan processing time by 2 days by replacing manual steps with DocVelocity automation.
• The extracted data is always linked to the image of the original documents, so the “source of truth” is always accessible.
• Loans reach underwriting faster which reduces loan turn times (more profit for the lender) and improves borrower satisfaction.