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Reduce Compliance Risk & Improve Efficiency with AI Foundry’s TRID Verification Cognitive Robot

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Banks and lenders can say goodbye to inefficiency by employing the latest in AI technology.

Right now, turbulence and seismic work change seem to be the new normal for almost every market segment. The economy is experiencing a once-in-a-generation shift, the jobs market is in freefall, and there is no playbook of best practices. Yet during these same unprecedented times, the residential lending market is reporting the largest application pipeline in history.

While some companies are adjusting their expectations, others are embracing the opportunity and trying new ways of working. One of the ways in which many leading mortgage lenders like Wyndham Capital Mortgage, AmeriHome Mortgage and Allied Mortgage Group are dealing with the new reality is through the implementation of powerful technologies that are agile and robust enough to elevate the loan manufacturing process,and streamline the processing lifecycle.

The TRID Verification Cognitive Robot  is a perfect example of a tool that is built to match the moment. Faced with the massive new regulatory burdens on lenders that are contained in the Dodd-Frank Act, AI Foundry's robot that is able to seamlessly monitor TRID compliance throughout the loan process.

By extracting data for comparison and validating the data while a loan progresses through a system, and by delivering any actionable findings for easy follow-up, the bot saves lenders time and money, while delivering a degree of accuracy far beyond what continuously-challenged staff members can manage on their own.    

The Challenges That TRID Poses

There is no doubt that TRID legislation has posed a significant number of real challenges to lenders in the industry. Amongst those challenges, according to Galina Kirpichov, a Customer Success Business Line Expert at AI Foundry, are an increased need for oversight and a consistent rise or compliance costs.

In every mortgage process, there are hundreds of data fields which must be validated consistently, and this has led to a massive need for data validation. Fees change quickly in this environment, ‘whether it’s an unexpected subordination,’ Galina explains, ‘unaccounted for riders, higher additional appraisal costs or simply smaller than expected payoffs, there are many factors that can and do slip by’.

By the time the Dodd-Frank bill was rendered in 2013, it was over 2000 pages long. Initially meant to allow borrowers to shop more easily and compare ‘apples to apples’, it evolved into something that pushed many lenders right to the edge. For example, when it came to the area of disclosure restrictions, ‘staff has had to manage these disclosures and communications, often in multiple systems, while attempting to perform checks and double checks of calculations, as well as dates.

The bottom line is that staff haven’t been able to keep up and the responsibility to absorb all the associated costs lies with the lender. Automation is the only viable solution to address these regulatory burdens.    

The Power of Automation

The suite of cognitive robots developed by AI Foundry are vital tools that perform at every stage of the loan manufacturing process. Starting with the application, then into processing, underwriting and on into closing and purchasing, the cognitive robots can transform the ways that lenders process loans, and dramatically cut the time it takes to process a loan.

The TRID Cognitive Verification bot works simultaneously alongside the other bots, operating as another safety layer. Kirpichov explains that ‘the changes happen between the processes, so as a result, this bot is always working in the background.’ On the Cognitive Business Automation platform, the Document Indexing and Filing cognitive robot is foundational. Without that ai assistant doing the initial work of labeling, classifying and extracting data from documents, the TRID cognitive bot cannot perform its function of monitoring all relevant documents throughout the process.

Kirpichov estimates that the ai assistant is doing the work of three people who are already watching and ready to step in when needed. ‘There are different things the lender can do to optimize,’ she says. ‘When there are unsatisfied conditions, they could make them an LOS or similar business rule requirement before moving onto the next milestones in the LOS. An LOS administrator can also require specific sign off based on rules, so that somebody has to meet the conditions before someone else can sign off on it after they confirm that the conditions have been met. A confirmation process loop is the ideal with findings, making sure that the information provided, has been resolved.’

How The Cognition Robot Works

There are five specific documents of interest for this robot:

  1. Change of Circumstance
  2. Closing Disclosure
  3. Loan Application
  4. Loan Estimate
  5. Purchase Contract

Within each of those document types are dozens of data types to be extracted and processed. Working in conjunction with a rules engine, the cognitive robot runs various checks to ensure a quick and error-free process

Taken together, these cognitive robots form the core of the Agile Mortgages Solution which is proving to be absolutely transformative for the industry.

Whether you’re a direct lender, wholesaler or investor, AI Foundry’s goal is to offer a solution that is simple to implement, that provides automated scalable support through AI assistance to staff, relieves the regulatory burden on overworked staff, and that ultimately makes our clients more profitable.

Get in touch with AI Foundry today to find out how to install the TRID Verification Cognitive Robot into your workflow.


Want to learn more? Listen to our 20 minute webinar available on-demand. 

Unprecedented Times. And the Power of Cognitive Robots featuring TRID Verification
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