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VirPack Names New COO

Wayland Pond IV has been promoted to Chief Operating Officer at VirPack. Pond previously served as the company’s Chief Business Development Officer and will continue to report to Michael Coar, President and CEO of VirPack.


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Pond, who has been with VirPack for nearly two decades, has played an instrumental role in the company’s growth and past successes. His insights into technology adoption, file automation, workflow, and operations helps with defining strategy, product roadmap, and offerings for VirPack’s main audience – mortgage lenders. Pond’s focus on leveraging vendor partnerships and integrations will remain a key part of the long-term value for VirPack’s customers.


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“In today’s market, lenders are faced with more financial pressure than ever to be efficient, add value for their customers, while also being confronted with increased competition and shrinking margins. Wayland brings a fresh management philosophy and strategic mindset for product development, operations, and corporate ethos. Wayland has been on the front lines gathering insights revolving around lenders’ needs and frustrations. He is uniquely suited to step into this role to help VirPack add additional value to lender operations relationships,” said Coar.


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“Providing customers with excellent products and services is the driving force behind each VirPack solution,” said Pond. “VirPack’s strength in product innovation, plus the delivery of positive customer-experiences only happens because we listen to our customers and find ways to uniquely meet their needs. I am proud and energized to lead VirPack through continued growth and to meet our mission to transform our customers’ lending operations.”


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Wayland Pond IV holds a bachelor’s degree from the Jepson School of Leadership Studies at the University of Richmond.

VirPack simplifies virtual document management for the lending industry by providing user-centric solutions for loan file management, e-delivery, and file indexing with full text OCR to significantly increase productivity and modernize business operations. A leader in file automation and automated workflows – our solutions replace manually complex and error-prone business processes with accuracy and efficiency for resource-constrained teams. For 20 years we have served the mortgage banking and financial services industries, innovating and creating award-winning technologies and solutions that have enabled customers to gain strategic competitive advantages.

Coping With Doc Management Complexities

The lending industry faces the challenge of managing very large volumes of unstructured documents that contain immense amounts of critical data. The process of classifying and keying data from these documents is labor intensive, time consuming and costly due to the sheer volume and complexity of the documents. In an industry where standardizing forms is not possible due to their varying sources and wide variety, an acceptable solution must be able to cope with this complexity.

Founded in 1993, Franklin American Mortgage Company (FAMC), a privately held mortgage-banking firm located in Franklin, Tennessee, is a full-service professional mortgage banker licensed to provide residential mortgages across the nation. FAMC, which offers a host of diverse, flexible mortgage packages for customers with a variety of backgrounds and needs, is committed to helping families and individuals achieve the dream of home ownership through its three divisions: retail, wholesale and correspondent.

FAMC offers borrowers, brokers and lenders the strength and security of a forward-thinking national mortgage company, dedicated to remaining an industry trendsetter. FAMC truly values its relationship with each customer and mortgage professional they work with, maintaining a company tradition of responsiveness and personalized service characteristic of a much smaller organization. This philosophy has enabled FAMC to become one of the fastest growing mortgage bankers in the nation.

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The Challenge

The Mortgage lending industry presents a number of unique challenges for manually classifying and managing very large volumes of disparate documents, which are ubiquitous within this industry.

>>It is common for a single mortgage loan to be comprised of over 250-500 pages of various size documents.

>>A mortgage loan may include over 275 different possible document types.

>>Manually sorting each set of loan documents can be a very labor intensive and error fraught effort.

>>When scanning loan documents, significant labor is required to simply establish the first and last pages of the multiple page documents. This is most often done using the costly process of inserting “document separator” sheets prior to scanning.

>>To compete in this extremely competitive business, organizations need to look at cutting costs and streamlining their processes.

Manually preparing a batch for scanning by inserting document separator sheets and manually classifying loan documents is a labor-intensive process. Not only is it critical that this process be done accurately, but also that it be done efficiently in order to allow downstream underwriting and servicing decisions to be performed in a timely way.

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Project Description

Franklin American Mortgage Company (FAMC) had been looking for an OCR technology vendor to streamline their ADR process and had spent a significant amount of time performing a due diligence process, which compared vendors of these technologies.

“We had attempted to use OCR in the past for Automated Document Recognition (ADR). Due to our prior experience and a variety of technical issues we were very skeptical about OCR.”

Because of the extremely large number of, and variations of forms FAMC encounters, they required the flexibility offered by a non-template-based solution. In addition, the ideal solution needed to offer pre-built mortgage logic that would “understand” the vast majority of the document types and variations FAMC was required to recognize. This logic would allow FAMC to rapidly develop a customized ADR solution to their specific needs using the ideal solutions copyrighted mortgage rules as its foundation.

Today, FAMC scans millions of pages of mortgage documents per month. They no longer require their employees to insert document separator sheets to prepare a loan for the scanning process.   Once scanned, the loans are processed using the industry leading OCR solution for automated document recognition.

Documents’ boundaries (first and last pages) are defined and their types are automatically identified. These processes are now done faster and with a fraction of the labor formerly required. To ensure extreme accuracy, sophisticated mortgage-lending business rules have been implemented as part of the solutions exception process.

Additional capabilities leveraged successfully at FAMC:

>>Verification provides list of very likely document types to further increase speed of verifying exceptions.

>>Ability to customize how documents are handled based on the division of business the documents come from.

>>Ability to quickly add new document types using the Paradatec exclusive automated learning objects.

>>Database lookups and business rule logic checks to ensure the highest degree of accuracy.

>>No scripting interface, easily configurable rules to manage FAMCs highly sophisticated ADR processing application.

Outcome

The project was completed and is currently in production. The system is able to achieve 80% document recognition while keeping error rates low. This has allowed FAMC to position itself for an anticipated future increase in incoming document volume and provides them with a powerful competitive advantage. Today FAMC is processing Millions of images per month and doing all this more accurately and with less production time than was formerly required.

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“We asked a number of vendors including the Paradatec team to help us perform an extensive due diligence process which included a proof of concept test with our own documents. Paradatec was the clear winner based on our comprehensive vetting process”.

Paradatec’s PROSAR-AIDA is an advanced and unique OCR recognition technology. It is unique in that it utilizes neural networks technology and Artificial Intelligence (AI). PROSAR-AIDA is able to read structured, semi-structured, and unstructured documents. It makes ‘decisions’ about document characteristics in much the same way as a human being does, only many times faster and without human intervention.

PROSAR-AIDA takes a very different approach than other technologies. Because the recognition engine (a Paradatec exclusive) incorporated in PROSAR-AIDA is faster than any full page OCR product on the market, it is able to process each image, in less than two seconds on average. It does this without making any assumptions about content location on the page or attempts at matching zonal OCR templates. PROSAR-AIDA is capable of processing thousands of documents per hour with a single processor core, and provides even further almost unlimited scalability by offering seamless utilization of the latest in multi-core processor technologies, and multi-server environments.

Because of Paradatec’s unique approach, and their ability to leverage a vast quantity of intellectual property, which they have built over the years specifically for mortgage loans, implementations can be completed in a fraction of the time normally required by others.

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Easing Document Management Woes

VirPack has released the latest version of its Document Management and Delivery System (DMDS). DMDS version 3.5 includes new capabilities that will deliver additional document management and operational efficiencies to VirPack’s customers.

“With DMDS version 3.5, VirPack produced several innovations that deliver meaningful efficiencies and time savings that create a competitive advantage for our customers,” said Cy Brinn, VirPack’s COO. “There is no question that this upgrade builds on our reputation as a technology leader, one that focuses solely on document management and imaging solutions that simplify and automate business processes.”

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Enhanced User Interface

Several user facing pages in DMDS 3.5 have been updated with cleaner layouts, sortable columns and improved searching with savable filters. This makes it easier for users to review pending work and access key operations including: Tasks, Workflow, Index, Deliver, Upload and Status.

Expanded Task Management System

While Task Management has been a core capability of DMDS for several years, DMDS 3.5 provides more options for defining and configuring tasks and assigning them to users. New task notifications automatically alert a user when a time-sensitive task is due soon or is past due, and department managers receive alerts and daily summaries about the number of tasks that are due soon or are past due. In addition, due dates can now be configured for business days and holidays, and the Task page now displays additional user and file information with support for user-defined and savable search filters.

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New Rule-Based Notifications of File and Document Changes

DMDS 3.5 now supports additional rule-based notifications giving users the option of receiving automated alerts when changes are made to a file or individual document container in addition to subscription-based alerts. Rules can be based on file level information and/or user information found in a database or business system.

Larger Page Thumbnails in the Index Application

To save time when reviewing and indexing documents, and/or to confirm content on an image without having to open it, DMDS 3.5 now includes larger page thumbnails in its Index application.

Default Settings by User Type

Also added to DMDS 3.5 is support for default user settings based on user types. When user types are defined and combined with access rules, DMDS can control access to specific files and document containers that users have access to and when they have access to them. This new feature saves time when adding new users and ensures compliance by establishing the appropriate security and access controls by default at a system level.

Lender Enhances Speed And Accuracy With Technology

After experiencing speed and performance issues and other challenges with its previous document management solution, Equity Resources began evaluating third-party document management solutions. Equity selected VirPack’s Document Management and Delivery System (DMDS) because it met the criteria set forth by their management team, including the ability to interface with its LOS, and it was overwhelmingly supported by its employee evaluation group who found it intuitive and easy to use.

Equity Resources, Inc., based in Newark, Ohio, is an independent mortgage banker licensed in 14 states and Washington, DC with 22 branch offices that specialize in retail consumer lending with a proven commitment to improving the lives of families through raving fan customer service.

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“Equity Resources required a solution that could interface with our loan origination system, automate the splitting and indexing of documents using OCR and expedite loan delivery to our investors and business partners,” said Kelly Welch, executive vice president of Equity Resources, Inc. “As a result of implementing VirPack’s DMDS, we have gained additional processing efficiencies and competitive advantages, all of which have helped us accelerate the growth of our mortgage business.”

Prior to implementing VirPack’s DMDS, Equity Resources relied on the document management functionality provided by its loan origination system provider but found it lacked the features and functionality required to maximize efficiencies in its loan process. It also presented other challenges including the creation and conversion of document images that were fuzzy and difficult to read, resulting in its investors periodically suspending loans and requiring new document images, which delayed purchase times.

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“Our LOS does a lot of things well, but it could not keep up with our document management needs or provide the efficiencies required for us to grow our business,” Welch said. “Document management and delivery solutions are VirPack’s core competency, and the benefits of partnering with a best of breed provider were obvious from day one.”

Equity Resources also cited VirPack’s ease of use, implementation expertise and the depth and quality of training, which ensured that their employees would quickly be able to get the most out of the system, in selecting VirPack.

“Even though we were as busy as we’ve ever been, the transition to VirPack’s DMDS was smooth and painless. Because of the additional capabilities provided by VirPack’s solution, our employees were excited to use it, and with the intuitive design, our staff got up to speed on the software very quickly,” Welch said. “From the time we deployed VirPack, our staff have been nothing short of delighted about the functionality and efficiency it provides them.”

“It’s unfortunate that many lenders feel handcuffed to their current document management solutions, whether provided by their LOS or another third-party vendor,” said Cy Brinn, chief operating officer of VirPack. “VirPack has worked diligently to expand the capabilities of our document management system to meet the needs of technology focused mortgage lenders like Equity Resources. The benefits and success that Equity Resources has enjoyed in such a short time is just the beginning and makes them a bellwether for their peers.”

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The March Toward Paperless Processing Continues

North American Savings Bank, F.S.B. has licensed VirPack’s Document Management and Delivery System. After evaluating its processes and third-party options, North American Savings Bank (NASB), a national mortgage lender headquartered in Grandview, Missouri, has concluded that licensing VirPack’s advanced Document Management and Delivery System would reduce its dependency on paper and trim costs and improve origination efficiency. Also, it increases its loan origination capacity, and ensures compliance with Consumer Financial Protection Bureau and state regulations.

“NASB continues to look for ways to enable our loan origination staff to expedite the collection, review and approval of loan documents to compress the time and cost required to underwrite and close loans,” said Bruce Thielen, executive vice president of residential lending at North American Savings Bank. “We conducted a thorough review of document management and delivery systems in order to find a solution that would provide the capabilities needed to accelerate the mortgage origination business.”

NASB required a system that interfaced with its loan origination system and made document submission, upload and handling easier and more efficient than it was in the past. NASB found the VirPack system easy to use and highly configurable, which will enable them to streamline workflow throughout the loan process.

“We are pleased that NASB selected VirPack’s Document Management and Delivery solution. Their selection of VirPack is yet another confirmation that the investments we continually make to expand our document management system technology and capabilities are aligned with the needs of technology focused mortgage lenders like NASB,” said Cy Brinn, chief operating officer at VirPack.

Lenders Have A New Attitude Toward Paperless

It used to be that you had to convince lenders about the benefits of going paperless. Boy has that changed. I’m seeing more and more lenders realize the benefits of at least doing more things paperless. For example, BofI Federal Bank recently selected VirPack’s Document Management and Delivery System as its enterprise document management and delivery solution. Here’s why:

BofI Federal Bank, headquartered in San Diego, CA, is a nationwide branchless bank that provides financing for single and multifamily residential properties. With more than $4.8 billion in assets, BofI Federal Bank distributes its loan products through retail, correspondent and wholesale channels.

“BofI Federal Bank wanted to enhance and streamline its end-to-end paperless loan process in the residential, commercial and multifamily lending operations,” said Brian Swanson, executive vice president and chief lending officer at BofI Federal Bank. “We selected VirPack’s Document Management and Delivery System for its robust functionality, intuitive interface and ability to integrate with our residential and commercial/multifamily loan origination systems.”

VirPack’s Document Management and Delivery System will increase efficiency in BofI Federal Banks’s retail, wholesale and correspondent lending channels to streamline document intake, automate document recognition and indexing and avoid delays that have afflicted many lenders because of new regulations, swollen loan files and reduced staff levels.

BofI Federal Bank also cited VirPack’s Borrower and Originator Web Portals, which enable BofI Federal Bank’s consumer and business customers to securely upload documents, track loan status and securely communicate with the bank’s staff, in selecting VirPack.

“There is no question that VirPack has developed a sophisticated platform that delivers on our promise to customers of providing a very effective document management and delivery technology that improves throughput, while shortening turn-times and cutting costs,” said Cy Brinn, VirPack’s COO. “In an environment in which lenders are forced to deal with greater regulatory scrutiny and economic pressure than ever before, lenders rely on VirPack’s solutions to ensure compliance, increase capacity, and deliver high levels of service without having to hire additional staff.”

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Increasing Competitiveness Using Cloud-Based Document Management Systems

Cloud-based systems are becoming more prominent with lenders as borrowers demand new ways to access their files anywhere, on any device, at any time. This technology provides connectivity and mobility to a new wave of first-time homebuyers well-versed in mobile technologies as well as borrowers reentering the market looking to buy their second homes and dreading a low-tech, disorganized loan origination process. Using a cloud-based document management (DM) system provides lenders with a variety of clear benefits that can change the way they do business.

Better service through a smoother workflow processes:

The Cloud is the best way to provide the flexible service modern consumers need. DM systems using the Cloud enable lenders and borrowers to access and share files from their mobile or tablet devices. Modern consumers want to feel empowered and as if they drive the pace of the origination of their own loans. Using the Cloud to create a more open system that streamlines the flow of information gives them more ownership of the process and can even speed up the origination of loans. Rather than being a despised part of purchasing a home, a smooth origination creates a rare but positive experience that clearly differentiates a lender’s commitment to good customer service.

Increased data security:

There is growing concern about data breaches and this makes security one of the most important benefits of Cloud-based DM systems. Contrary to popular belief, the Cloud is not less secure than more traditional systems. In fact, it enables lenders to more easily use digital rather than paper documents, which is much more secure. There is never a fear that a digital document will be lost or that an email with sensitive information will be hacked. Cloud vendors are pouring large amounts of resources into securing their services every day as that is a part of their core business.

Compliance:

Cloud-based DM systems offer a higher level of automation and this enables lenders to build a system that shoulders the compliance burden. A fully automated system accessing information via the Cloud is proactively ready for an audit by confirming the regulatory status of every document at the push of a button. Preparing for audit can take a few hours rather than days and regulators can complete their work more quickly, meaning the lender can focus on originating loans much sooner.

Cost savings:

The Cloud is also very cost effective. Many lenders using older, legacy systems often end up paying much more for IT because they have a fixed cost whether or not their businesses are slow or busy. The Cloud allows users to pay more when they need more service and less when business slows down.

The Cloud is also much more scalable because it can elastically grow to handle volume and is easier to integrate supporting technology via web services without any loss in capabilities. More traditional systems require the use of bolt-on technology which often degrades the uses capabilities and can actually make lenders less competitive.

Successful lenders evolve with the times and are always striving to provide the best service to customers at the lowest price. Cloud offers both of these and is increasingly viewed as the wave of the future. If they haven’t already done so, leading lenders are educating themselves on the benefits of Cloud technology and developing plans for using it.

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Doc Management Vendor Reaches Out

VirPack, a long time provider of Document Management and Delivery solutions, has launched the VirPack Partner Network, which provides lenders with “One Click” access to service providers and investors as well as increased throughput, accuracy, and lower costs. “The VirPack Partner Network was created to enable lenders, origination service providers and mortgage investors to integrate their services into the VirPack Document Management and Delivery System,” said Cy Brinn, VirPack’s COO.

“VirPack is focused on providing expanded service ordering and investor delivery choices for lenders. We work continuously to provide them with increased origination efficiency and to help them achieve a zero defect rate when manufacturing mortgages,” Brinn noted.

The VirPack Partner Network provides lenders and servicers with the ability to order and receive services throughout the loan lifecycle—from cradle to grave—directly through VirPack’s Document Management and Delivery Platform. Lenders can also order services outside of their loan origination system, which reduces the time required to move documents into their document management system’s loan files while eliminating manual labor and filing errors. Clients will have more choices of service providers and pay lower fees than in the past.

In addition, given the rapidly changing secondary market forces, lenders want the widest array of One Click investor delivery choices they can have. Because DMDS automatically compiles loan documents in the investor’s unique stacking order and file format, lenders prefer to deliver to investors who participate in the VirPack One Click investor delivery network.

To be sure, investors expect the highest level of accuracy and efficiency when receiving loan files, communicating with lenders, and document requests, and the VirPack Partner Network achieves those goals. “The new features we provide for loan delivery receipt and two-way communications about loan delivery status and follow-on document requirements from investors was included for that purpose,” said Brinn.

“Ordering services through the VirPack Network means greater accountability and efficiency because documents ordered from a participating service provider are delivered automatically into the Document Management and Delivery Platform,” said Tony Eelman, Chief Operating Officer at FBC Mortgage, LLC. “When we order services through this platform, we are buying them direct and can negotiate a price. That price is almost always lower than through a loan origination system.”

Among the investors VirPack delivers to are Wells Fargo, Flagstar, Citi, Chase, FHA, PennyMac, BBT, Homeward, Opus, GreenTree, Franklin American, Roundpoint, PHH, Pingora, 360 Mortgage Group.

VirPack provides service ordering and delivery interfaces with a wide array of service providers including StreetLinks, LoanLogics, MGIC, StoneHill, Global, Cenlar, Tena, MRN, ServiceLink, Allonhill, and Adfitech.

Up to now, clients had access to the Investors Delivery functionality within VirPack’s DMDS. That option remains, though many investors have begun to transition to upgraded platform.

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See What I Mean?

Every time my kids get home from school I bother them to do their homework. I’m sure they think I’m a broken record. Similarly, I’m sure that you think I’m a broken record because of how often I talk about paperless technology. But this technology is catching on. For example, a provider of cloud-based document sharing, imaging and management solutions for mortgage lenders, announced that in 2013, it experienced significant growth as it increased the number of U.S.-based staff by 180 percent and its monthly recurring revenue by 66 percent, in addition to achieving other major milestones.

In January 2013, Capsilon acquired DocVelocity, a document imaging distributor of Capsilon’s technology, from Flagstar Bancorp. Following the acquisition, the company adopted the DocVelocity name for its imaging system. Capsilon has continued to update DocVelocity to provide increased productivity and flexible access for customers. The updates offered throughout last year included batch delivery of loan packages to investors and service providers, improved performance and automatic updates for the Desktop App and camera capture for the DocVelocity Mobile App. In addition, Capsilon now offers users of DocVelocity access to a variety of educational classes designed to train them how to more successfully manage and process their mortgage documents.

Capsilon introduced new Network Delivery capabilities that enable DocVelocity users to deliver secure and compliant loan packages to leading GSEs and financial institutions in December 2013. Lenders can deliver a single loan package or a group for batch delivery to Chase, Citibank, Flagstar Bank, Wells Fargo Bank, Fannie Mae, Freddie Mac and the Federal Housing Authority according to their prescribed formats and protocols.

The company also opened new offices in Troy, Mich. and Irvine, Calif. to better manage Capsilon’s dramatic growth. The new offices enable expansion of services and support capabilities for mortgage lenders and investors throughout the United States.

“Throughout 2013, our company enhanced DocVelocity and built the national infrastructure to enable Capsilon to increase market share and continue to provide innovative technology solutions to the mortgage industry that focus on increasing profitability and facilitating compliance,” said Sanjeev Malaney, chief executive officer of Capsilon. “These efforts offer a solid groundwork for our continued expansion in 2014.”

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Remember, Don’t Be Rigid

*Remember, Don’t Be Rigid*
**By Tony Garritano**

TonyG***In a changing world, and let’s face it the changes are coming fast and furious in the mortgage space these days, nobody can allow themselves to be close minded. We all have to be flexible. And in the end, your technology should help you be flexible. For example, Specialized Business Software, a provider of custom software solutions for insurance, mortgage and financial services companies, has just released Docunym 2.2, an enhancement to its Web-based document management and workflow solution enabling users to manage and retrieve loan documents faster and more efficiently.

****Docunym 2.2 allows for easy and secure document sharing with non-Docunym users while keeping existing encryption and audit trails in place. The new system also includes an enhanced document upload feature that enables users to drag and drop files from their computers into the appropriate Docunym folder. Users are also able to select and work with batches of documents so that updates and workflow actions are performed across all selected records resulting in increased efficiency.

****“Docunym 2.2 provides the capability to securely communicate across geographic, technological and business lines,” said Steve Wiser, president and founder of Specialized Business Software. “The upgrade was designed specifically to allow data to easily transcend different technology platforms without sacrificing security.”

****Since 1999, Cleveland-based Specialized Business Software has developed custom technology solutions for insurance, mortgage and financial services companies to enable them to improve business processes, operate more efficiently and increase profitability. SBS’ customtechnology solutions automate routine tasks on behalf of the user, with the goal of eliminating the need for spreadsheets and manual processes.