In today's digital age, many businesses are moving towards paperless solutions to save time, money, and resources. The mortgage industry, in particular, deals with a vast amount of paperwork, making it a prime candidate for digitization. Through the process of scanning mortgage files, lenders and other industry players can experience a range of benefits, from enhanced data security and storage to streamlined workflows and improved customer experience.
Partnering with a document scanning company for the scanning process can help mortgage lenders to avoid the hassles of doing it in-house, with a range of benefits to enjoy. In this article, we will explore some of the reasons why digitizing mortgage files is beneficial and why partnering with a document scanning company is the best choice.
Better Data Security and Storage
One of the most critical benefits of digitizing mortgage files is improved data security. Physical document handling carries a significant risk of misplacement, damage, or theft, leaving the lender exposed to security breaches and lost customers' trust. Document scanning can help mitigate such risk exposure by offering enhanced data security and storage solutions. Digitized mortgage documents can be stored in secure locations, where only authorized personnel can access them.
According to The Hartford, data breaches cost small businesses an average of $200,000 per incident, and one in four small businesses lack adequate cybersecurity. Scanning mortgage files with a document scanning company ensures that data is safely stored and backed up for disaster recovery, complying with industry compliance and regulatory standards like CFPB, FINRA, and SEC.
Improved Efficiency and Productivity
Another benefit of digitization is improved efficiency in workflows and increased productivity. Mortgage document scanning services can help lenders simplify the process of document retrieval, review, and validation, ensuring faster turnaround times in underwriting, funding, and overall loan processing.
Additionally, digitized mortgage documents eliminate manual data entry and the need for managing physical files, which can be time-consuming and error-prone. A survey conducted by AIIM indicates that 61% of organizations have seen increased productivity since adopting digital document management solutions.
Enhanced Customer Experience
Digitized mortgage files offer a more efficient way of working with clients, improving their overall experience. With digitized documents, mortgage lenders can respond quickly and efficiently to customer inquiries, provide significant information, and update real-time loan status information.
By partnering with a document scanning company, mortgage lenders can ensure that clients' sensitive information remains confidential while providing more accurate and reliable service.
Improved Cost Savings
The cost of maintaining physical mortgage files is high, with ongoing expenses like storage costs, employee time spent on manual processes, and paper and printing costs. Digitization can help mortgage lenders to reduce these costs significantly, ultimately improving the company's bottom line.
Digitizing documents for loan processing can save lenders up to $20-$40 per loan in copying, printing, shipping, and storage costs. Moreover, digitized mortgage documents can be easily accessed and shared on secure servers, reducing the need for physical documents, printing, or mailing.
Partnering with a Document Scanning Company
Digitizing mortgage files can offer significant benefits, but the process requires specialized equipment, trained personnel, and secure storage solutions. Indeed, partnering with a document scanning company can help lenders to simplify the document scanning process, speed up turnaround time, and reduce costs.
Professional document scanning companies have the equipment, personnel, experience, and technology to scan mortgage documents accurately and quickly while maintaining data security and privacy compliance.
FAQs
Why do mortgage lenders scan their mortgage files?
Mortgage lenders scan their mortgage files to convert paper documents into a digital format so that they can be easily accessed and managed electronically.
What types of documents are typically scanned in mortgage files?
Generally, mortgage lenders scan all documents related to the mortgage loan, including the mortgage application, disclosure documents, credit reports, income verification, property appraisal, and title insurance.
What are the benefits of scanning mortgage files?
Scanning mortgage files provides several benefits, including faster loan processing, reduced paper storage costs, improved accuracy and compliance, and easier retrieval of documents.
Is it safe to store mortgage files in digital format?
Yes. Mortgage lenders take necessary measures to ensure the security of digital files, including using encryption protocols and limiting access to authorized personnel only.
What happens to the original paper documents after scanning?
Original paper documents are typically stored in a secure location for a predetermined period of time and then destroyed in accordance with regulatory requirements.
Conclusion
Mortgage lenders can significantly benefit from digitizing mortgage files, from cost savings and enhanced efficiency to greater data security and improved customer experience. Partnering with a document scanning company can provide the necessary equipment, personnel, and technology to guarantee faster turnarounds, greater accuracy, and lower costs. Ultimately, digitizing documents can help lenders gain a competitive advantage, reduce risk, and meet regulatory and compliance requirements.
Digitizing your documents with a reputable document scanning company can help simplify your workflow processes by giving you quick access to important information whenever you need it without having to search through a warehouse full of paper records.
When it comes to tackling large projects, our partners work in a variety of industries digitizing a wide range of documents in all formats.
Contact DocCapture today for assistance connecting with some of the best document scanning companies available!
