New partnership aims to "dramatically reduce" mortgage servicing costs

Synechron, a financial services technology firm, and Paradatec, a freeform document classification and data extraction company, have partnered in a bid to "reign in soaring document extraction costs" in the mortgage industry.

Related topics:  Mortgages
Rozi Jones
20th October 2016
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"Mortgage servicers and lenders are looking for reliable ways to automate their systems that have become increasingly expensive to operate."

The firms say their partnership and licensing agreement will "dramatically reduce costs and increase productivity" for mortgage originators and servicers through more accurate document automation.

The Mortgage Bankers Association has forecast that the purchase originations and refinance originations will total $1.54 trillion in 2017.

Synechron believes that with document management costs forming a huge part of every mortgage originated, any increase in straight through processing of documents will reduce the burden on the industry as a whole.

Synechron has also launched a blockchain application aimed at mortgage servicing which they believe could dramatically speed up the mortgage loan approvals and payments process, with blockchain "having the potential to transform the industry".

Zia Bhutta, Co-Founder and COO of Synechron, said: “Mortgage servicers and lenders are looking for reliable ways to automate their systems that have become increasingly expensive to operate.

“Many of the OCR tools that are available in the market today claim to handle unstructured documents, but Paradatec’s superior technology and focus on mortgages enables them to offer the highest rates of automation and accuracy. Paradatec’s automated processing and neural networking approach to OCR, can dramatically reduce costs, minimize risk and optimize operations to significantly improve mortgage servicing. This technology will be an important first building block to becoming a digital business.”

Mark Tinkham, Director of Business Alliances at Paradatec, added: “Synechron’s deep understanding of the mortgage industry and the changing technology landscape makes them a perfect partner for Paradatec.

“With continued pressure from regulators on lenders, most recently with TRID rules, we know that there is a serious need in the market to find solutions that can quickly adapt and do so accurately.”

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