CoreLogic has selected Paradatec, Inc.’s artificial-intelligence-based (AI) document classification and data extraction technology for its loan auditing tool Corelogic HMDA Check. The tool assists lenders in complying with the Home Mortgage Disclosure Act’s (HMDA) requirements to publicly disclose mortgage data to combat housing discrimination.
“CoreLogic HMDA Check is helping to eliminate costly ‘stare-and-compare’ manual processes, allowing lenders to expedite the loan review process and better ensure HMDA compliance,” Ryan Thomas, CoreLogic principal, said in a release. “With Paradatec’s technology, we are helping lenders reduce HMDA reporting timelines from days to hours, so they can fulfill the CFPB’s requirements accurately and more efficiently.”
CoreLogic HMDA Check uses Paradatec’s optical character recognition data extraction technology, helping CoreLogic clients increase efficiency, improve data accuracy, and reduce costs. The AI-based tools quickly scan hundreds of loan files and capture applicable HMDA data for reporting in just seconds.
“We are very happy to team up with CoreLogic to help mortgage lenders streamline HMDA reporting, which has traditionally been a very manual and labor-intensive process,” Mark Tinkham, Paradatec director of business alliances, said. “The timing couldn’t be better, either, as federal regulators have been increasingly vocal about using their enforcement powers to protect consumers and lenders could potentially face penalties for non-compliance. CoreLogic HMDA Check is a great way to prepare and submit HMDA data quickly and cost-effectively.”
CoreLogic HMDA Check supports the loan application register (LAR) reporting process by automatically inspecting more than 30 different loan origination document types for than 100 HMDA reportable fields. This includes loan terms, interest rate, and borrower information. The tool then validates the LAR data and highlights any discrepancies for the lender. HMDA Check is customizable to match lenders’ specific policies and documents.
Paradatec offers an out-of-the-box solution to completely automate incoming loan processing by identifying more than 800 unique documents in the typical mortgage loan file and capturing over 8,500 data elements from those documents. Its clients include three of the 10 largest U.S. banks and four of the 10 largest servicers.