Loan document tracking: When only a complete view will do

Banking professionals know that managing the lifetime of a loan is more than tracking individual documents. It involves understanding the documents that make up the loan, and managing the entire loan as a package, from booking through servicing.

Like many financial services organizations, First National Bank of America needed a solution that could organize loan documents into the proper document types and prepare them for compliance auditing. Leaders at FNBA were looking to go beyond their aging legacy system – which could only track final documents – to get a complete view into each loan account.

When the bank found an end-to-end loan document tracking solution, it was able to improve the entire lending lifecycle.

More than document management

“The solution’s approach was innovative. A completely different way of looking at the problem,” said John Hinsman, records department manager at FNBA.

The solution begins tracking as soon as the financial institution receives a lead, giving employees a complete view of the prospect pipeline. By capturing information that once only existed on local computers or on paper, it gives employees the power to run reports in real time to see what types of loans are in the pipeline – as well as data from prospects that may not even be customers yet.

Industry-specific solutions

Employees at FNBA also easily meet compliance challenges specific to industry standards.

By proactively notifying the lender of required or missing documents, the loan document tracking solution helps ensure compliance throughout the loan’s lifecycle. It also helps identify expiring documents, informs loan officers of what new documentation they need to collect and initiates retention following payoff.

A customizable interface clearly shows compliant and non-compliant loans, and even informs loan officers what documents are missing through customizable reports. There’s less worry about fines and penalties. Auditors can quickly see if a loan is compliant or if documents are missing. And a reminder system even alerts users of expiring or late documents.

Seeing it all

By covering all the bases, including reporting on any captured data element – collateral type, entity name, expirations, exceptions, document types, items updated throughout the loan process, collateral on closed loans, pipeline visibility and correspondence – the loan document tracking solution gives leaders at FNBA the confidence that they are revolutionizing their loan processes.

In fact, a month after implementation, the organization was already seeing better documentation on missing and excluded documents.

“Once you get the right solution,” said Hinsman, “you take a look at all it can do and think, ‘Holy smoke, what do we do next?’”

Bryan Boynar has expertise in the financial services and insurance fields and has been a contributor to the Hyland blog.
Bryan Boynar

Bryan Boynar

Bryan Boynar has expertise in the financial services and insurance fields and has been a contributor to the Hyland blog.

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