When you look at the front page of today’s newspaper, you likely find a bold headline that discourages a presidential candidate, mocks the arrogant decisions of a celebrity, or undermines the dire situations being faced in underdeveloped parts of the world. It won’t be until you reach page seven or eight that you find a small blurb containing critical information pertaining to the nation’s major banks, the likes of which include Bank of America, Wells Fargo, and JP Morgan Chase. But after all, it’s just the economy.
What that small blurb won’t describe is how some simple changes in these massive corporate banks could prove to be unequivocally beneficial in helping to prevent similar meltdowns in the future. Primarily, the use of document management systems that not only provide for a more efficient workflow, but are also capable of tracking changes and providing concrete documentation around critical projects. These scandals provide a great case for showing how truly valuable guaranteed documentation provided by document management software can provide.
Many mortgage lenders were exposed to serious legal scrutiny regarding documentation in foreclosure situation. Their documents were subjected to a variety of litmus tests determining whether or not each was complete, legit, and in-line with industry regulations. In many situations documents were misfiled, never reviewed or robo-signed and, in some serious cases, the required documents had simply vanished in the ether.
The lack of a document management system may have significantly contributed to the errors and omissions that were uncovered. By relying strictly on human capability, these documents were highly vulnerable to human error and ineffectiveness. These banks wasted hundreds of millions of dollars and suffered a great deal of public disgrace as they progressed with foreclosures resulting from home loans that simply should not have been granted.
Solutions to prevent these types of serious violations and scandals can be solved by loan processing and paperless workflow solutions like DocStar’s LoanWorks application.