LoanLogics, a provider of loan quality technology for mortgage manufacturing and loan acquisition, has launched LoanBeam Wage, an automated tool that enables lenders to calculate wage earner borrower income quickly and accurately, from paystubs and W2s, solving the paper-based challenges these income sources represent.
LoanBeam Wage combines advanced machine learning with layered optical character recognition (OCR) technologies to automatically extract and interpret the variety of income data contained in a borrower’s unstructured paystub and W2 income documents, with no human involvement. In minutes, sales teams can see a single, summarized view of a borrower’s income that separates data into fixed and variable income streams. Underwriters can also review the borrower’s source income documents at any time and calculate any adjustments to a borrower’s income with an audit trail of all changes.
Currently, paper and PDF documents, such as paystubs and W2 forms, are used to qualify borrower income on roughly 70 percent of all applications containing wages. The process typically requires a lender’s human staff to review income documents by hand and retype data into spreadsheets or the lender’s system of record, which increases the chances of delays and costly errors.
“While the majority of mortgage applications are qualified using wages, and some of this is certainly being automated through ‘digital’ income verification solutions, often not all borrower or co-borrowers’ income can be accessed this way. In addition, the cost of verification of income (VOI) and verification of employment (VOE) is rising,” said Roby Robertson, LoanLogics head of mortgage origination automation. “By automatically capturing income data from a borrower’s structured and unstructured documents, LoanBeam Wage empowers lenders to evaluate income early in the process, determine the need for VOI/VOE, and make income calculation faster, less expensive, more accurate and more reliable.”
LoanBeam Wage makes calculating a borrower’s income simple by converting paper-based income verification into system-based automation. Built with a robust set of application programming interfaces (APIs), LoanBeam Wage can be easily connected to a lender’s system of record and integrated into a lender’s automated workflows.
“We were currently using LoanBeam’s Self Employment wizard and decided to give their Wage Earner a shot and it’s been great,” said Angela Walker, assistant vice president of mortgage lending at Houston Federal Credit Union. “Now we can send all our income through LoanBeam making it more efficient for our Loan Officers and the whole team. The process itself is super simple, upload and follow a few more steps and you’re done. Your results will be back within minutes.”
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