Guaranty Home Mortgage Corp. automate document processing with AI

Guaranty Home Mortgage Corp., a fast growing independent mortgage banker that obtains loans through wholesale and correspondent channels, chose Paradatec’s AI-Cloud to automate document processing and indexing.

Paradatec, based in Cincinnati, Ohio, which claims to be the world’s leading provider of optical character recognition (OCR), launched its AI-Cloud solution in September. Paradatec AI-Cloud uses document classification and data extraction technology hosted by Amazon Web Services (AWS).

Documents are submitted to AI-Cloud for processing using a customer-specific URL, and automated loan indexing technology breaks each loan down into more than 850 specific document types. Machine learning tools and pre-trained libraries can turn more than 8,500 data points in mortgage documents into actionable data, according to the company.

Guaranty Home Mortgage Corp. (GHMC) selected Paradatec after evaluating AI-Cloud and competing solutions over a period of several months. AI-Cloud has enabled GHMC to reduce the average processing time for a loan to be ready for review after document uploads from 30 minutes to 10 minutes, the companies said. The average time to review and correct loan documents has been reduced from 40 minutes to 5 minutes.

“Paradatec was the obvious choice based on our comprehensive verification process,” GHMC Technical Director Michael Rhoden said in a statement.

Paradatec COO Neil Fraser said GHMC’s results “are quite typical for our clients” and suggested setting up one-day blind comparison tests for any lender. .

“It only takes a day to see exactly what this technology can do, right out of the box,” Fraser said.

Founded in 1986 as the Guaranty Trust, GHMC was a local retail lender until the turn of the century, when it entered the Third Party Origination (“TPO”) space. In 2019, the company was acquired by billionaire investor Gaylon M. Lawrence Jr. and renamed Guaranty Home Mortgage Corp. as it moved from a federally registered trust to an independent mortgage bank. The company is licensed to provide mortgages in 48 states; New York and Hawaii are the exceptions.

Based in Nashville, Tennessee, GHMC works with a nationwide network of mortgage brokers who make loans through the company’s wholesale lending channel, and also purchases loans from “non-delegated” correspondent lenders, including loan companies. mortgage, banks and credit unions.

Non-delegated Correspondent Lenders help borrowers select a loan, complete their application, and provide the required initial loan information and supporting documents for the loan application. They then submit the loan file to a corresponding investor, such as GHMC, for subscription. Once approved, the correspondent lender closes and funds the loan, then sells it to the correspondent investor.

By taking advantage of economies of scale and automating much of the application and underwriting process, wholesale and correspondent lenders aim to achieve savings that can help their originator partners win business by setting competitive prices for loans. and taking market share from less efficient lenders.

According to the latest files available from the Consumer Financial Protection Bureau, GHMC financed $ 3.29 billion in loans in 2020, up 82% from the $ 1.81 billion in installments in 2019.

Although known primarily as a direct lender, the nation’s largest mortgage lender, Rocket Mortgage, makes its mortgage origination technology available to banks and credit unions as a “mortgage as a service”. end-to-end through Salesforce Financial Services Cloud. .

In addition, Rocket Pro TPO – the division of Rocket Mortgage that works with mortgage brokers – has launched several initiatives to strengthen Rocket’s value proposition to brokers, including tools to help brokers establish and maintain relations with real estate agents.

The country’s largest wholesale mortgage lender, United Wholesale Mortgage (UWM), in September launched a new self-service platform for brokers, BOLT, which automatically categorizes and extracts information from documents, enabling brokers in mortgages get initial approvals for qualified borrowers in 15 minutes.

The company also has a new in-house valuation capability, UWM Appraisal Direct, which gives brokers the ability to bypass valuation management companies.

Mortgage originators can also partner with providers to automate and streamline their processes.

Google Cloud’s specialty mortgage solution, Lending DocAI, launched in April, helps partners like Roostify and Mr. Cooper automate data entry and create and customize document processing workflows. Roostify offers intelligent document processing to any lender through an application programming interface, or API.

Microsoft Cloud for Financial Services, which integrates cloud services into all of Microsoft’s public cloud offerings, launched on November 1 with partners such as Mortgage365 and Finastra, the developer of the Fusion Mortgagebot platform.

Like Paradatec’s AI-Cloud, Underwriter Assist, Black Knight’s AI-powered mortgage solution, also runs on AWS, using Amazon Textract and mortgage-specific algorithms developed by Black Knight to extract data from documents such than W2 and pay stubs.

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