Loan Originations Hit Record High: Is Your Credit Union Prepared?
In 2012, loan originations at credit unions hit the highest volume ever recorded in a first quarter, according to new data from Callahan & Associates, an analytical services firm for credit unions. In fact, they jumped 25 percent compared to 2011.
Whether for a house, car, boat, business or something else your member has always dreamed of, the decision to extend credit is one you never take lightly. The faster you can make a decision on a loan, the faster you can help fulfill your members’ dreams. And the faster your team can gather applications, the faster you can recognize revenue.
Increasing your speed and accuracy so you can focus on members
However, speed isn’t the only thing that matters. You also have to process the loan accurately. Multiple documents like appraisals, proof of income, credit reports and more are required for processing and each should be closely scrutinized by the lender. In a paper-based environment, this can slow down the lending process, and manually managing paper costs time and money that could be better spent with members. As the volume of documents and demand for faster processing increases, so does the lender’s need to find the right information quickly.
In addition to finding a way to manage all that paper, lenders must juggle compliance, regulations and the need for transparent processes. There has to be a better way than managing documents in hard copy for the entire lives of the loans, right?
Capturing documents electronically and automating processes to meet external demands
That’s where document management solutions – also referred to as enterprise content management (ECM) – help. These solutions give credit unions the ability to meet compliance and regulation demands by capturing loan documents electronically and working through loan processes without relying on paper.
Regardless of the source or format of the required documents – email, paper, fax, etc. – the right ECM solution manages the documents and surrounding information in a way that grants visibility into processes and real-time data, so your credit union proactively complies with local, state and federal regulations. And once a loan is in the system, electronic document workflow automates routing and decisioning to eliminate errors and decrease processing time. Moreover, if a required document has expired, is approaching expiration or is missing entirely, the solution instantly notifies users.
By automating underwriting and associated lending processes, credit unions also save on staffing and costs associated with paper like storage, shipping and destruction.
By integrating with existing loan origination software (LOS), ECM keeps users in their familiar environment, easing end-user adoption. E-folders replicate processes from the paper world to ensure users are comfortable and require minimal training. Investors and customers receive their loan documentation faster and with greater accuracy, which paves the way for future sales opportunities.
When it comes time for servicing, documents like checks, letters and reports are associated with the original loan information, all contained within a single, central repository.
Everything you need to process, underwrite and service a loan is in one place. That’s how you prepare your credit union to provide superior member service in an industry whose growth is continually smashing records.