Due diligence firms are getting busy. Whether it’s a pre-securitization review, investigating the collateral for a private transfer or reviewing mortgage servicing rights, these firms are very active right now. We’ve been sitting down with them recently and discussing a challenge they have been working to overcome.
Technically, we don’t operate in the due diligence space. We are strictly a loan origination technology provider and we focus all of our efforts on that mission-critical function. However, some of the technology we’ve developed to help lenders originate loans more efficiently has attracted the attention of some due diligence providers.
One area of overlap between loan origination and due diligence is the management of documentation, including identifying documents, classifying them, verifying and validating the information they contain, and processing the data.
One side effect of the race to digital lending is that more of the documentation lenders use to underwrite and process mortgage loans is natively electronic. We needed technology that could manage those documents effectively. So, we are developing it.
As it turns out, this functionality goes to the core of what due diligence providers do every day.
For lenders who are originating for their own portfolio, it’s nice to know that they have the core functionality required to perform their own due diligence built right into their loan origination technology. In addition, Non-QM lenders who plan to sell their production in bulk can benefit from having the tools to perform their own due diligence before sending their loans upstream.
It’s all about efficiency. That’s what the right tools deliver. To find out more about our Document Management road map, .
By Joe Camerieri, EVP, Client Account Management at Mortgage Cadence
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