Before jumping into the features that set the best doc prep providers apart, it's important to cover the basic functionality this technology should provide.

First and foremost, lenders should have the ability to generate and deliver mortgage documents, both electronically and through paper fulfillment. While eDelivery is often more convenient for borrowers since it enables them to review documents in advance of closing and clear up any questions or inconsistencies, paper fulfillment is necessary to guarantee TRID compliance and accommodate borrowers who may feel more comfortable utilizing paper mediums.

The doc prep provider should also provide eSign functionality that borrowers can use to conveniently sign documents whenever and wherever they please. Ideally, the platform should be mobile-capable, supporting signatures from smartphones and tablets to provide even more convenience to the borrower.

Dynamic Documents

When it comes to document generation, credit unions should ideally be looking for technology that generates dynamic documents over static forms.

Static forms are document templates with empty space for lenders to fill in the necessary data fields. Lenders must enter or change these fields manually to customize the template to the transaction. Dynamic documents, on the other hand, use rules-based intelligence to automatically pull the necessary data fields from the lender's loan origination system to create transaction-specific documentation.

Why dynamic docs? Using static forms makes mortgage lending a much more time-consuming and arduous process. For one, data management is much more difficult, as this method requires lenders to first create printed document templates that are then scanned into their processing systems and use complicated technology to extract the data they need. The technology relies on X-and-Y coordinate matching to locate the data fields that must be populated, opening up a wide margin for error since documents that don't match a certain template will not be created properly. Along with being time-consuming and error-ridden, this method also leaves no way to enter in additional space to accommodate borrowers with long names, addresses or other lengthy data points, limiting and further complicating the process.

Furthermore, lenders using this method would need to generate a new stack of documents every time they want to offer a new loan product. Considering that documents are often customized to specific transactions, quality control also becomes an issue with so many versions all created manually.

With a dynamic format, documents are automatically and electronically generated and delivered to the borrower and investor. Automation and rules-based intelligence greatly reduce the lender's susceptibility to errors and eliminates the need to manually create new sets of documents for each transaction, enhancing quality, compliance and efficiency.

Tight Integration Support

While powerful on its own, document technology works best when integrated with the lender's other tools, especially as the digitization of mortgage lending becomes more prevalent and competitive within the industry.

For example, the optimization of dynamic docs requires integration with the credit union's LOS so that the technology can access all of the necessary transactional data and automatically pull it to populate the documentation. Ideally, all parties essential to the process should be integrated to facilitate communication; for example, the POS, title services, payroll services and other parties should be accessible within the platform.

By integrating, much of data sharing and the mortgage lending process as a whole are automated. Since this greatly reduces human interference, there is a huge wealth of benefits for credit unions: Minimized room for error, increased efficiency, a complete paper trail of the loan's history to prove compliance and ownership, easier collaboration between the parties required to complete transactions and a streamlined member experience, among others.

An Excellent Member Experience

Features are an important aspect of document technology, but if credit unions aren't working with the right provider, it will be much more difficult for them to capitalize on the full functionality and benefits provided by the software. In other words, it's equally important that the document technology provides an excellent experience, both for the credit union and its members, as it is that the technology houses the right features.

For members, offering an excellent experience is as simple as ensuring the technology is convenient and intuitive to use. All member-facing functions – most notably, eDelivery and eSign – should be presented in a user-friendly interface that enables members to quickly access the information and functions they need at any time. Mobile capabilities are a crucial aspect of this, as they enable borrowers to sign documents even while on the go.

For lenders, an excellent experience revolves around working with a responsive and attentive vendor. The doc prep vendor should provide their support and expertise throughout the implementation process as well as be readily available for ongoing training and support. They should offer multiple points of contact and respond to any queries in a timely manner to avoid significant disruption to the credit union's operations.

Furthermore, the vendor should be willing to tackle any issues that arise with minimal turnaround time (even coming onsite, if needed) and ideally provide visibility into any inquiries and the steps taken to resolve them through a web portal. The provider should also continually strive to improve their solution, taking into account both technological developments and compliance changes to ensure the platform is as up to date as possible.

The bottom line is that the best vendors will be a true and active partner, not simply a provider.

There are many document technology solutions out there, and credit unions can often feel overwhelmed with choices when deciding on the best solution for them. For those shopping, the most important thing to remember is that, while functionality is crucial, it's equally important to work with a partner who can empower you to make the most out of the platform. With the right balance of features and service, lenders will enjoy a more efficient, streamlined, simpler and all-around improved mortgage lending process.

Shannon Barrow is Director of Marketing for Docutech. She can be reached at 602-300-3901 or [email protected].