LoanLogics this week rolled out LoanBeam Wage, a new automated tool that enables lenders to calculate borrower’s income quickly by using paper-based paystubs and W2s.
The Jacksonville, Florida-based digital mortgage solutions provider combines machine learning with “layered optical character recognition technologies” to automatically extract and interpret income data in a paystub and W2 income documents without a lender’s human staff, the firm said in a release.
“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 verification of income and verification of employment, and make income calculation faster, less expensive, more accurate, and more reliable,” Roby Roberston, head of mortgage origination automation at LoanLogics, said in a statement.
Paper and PDF documents, such as paystubs and W2 forms, are used to qualify borrower income on roughly 70% of all applications containing wages. The program is connected to a lender’s system of record and integrated into a lender’s automated workflows, which converts paper-based income verification into system-based automation.
“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,” said Roberston.
Founded in 2005, the LoanLogics platform provides technology automation for mortgage document processing and data-driven audit software that improves efficiency, enhances transparency, streamlines commerce, and reduces risk.
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The IRS extended the deadline to conform to their new 4506-C clean form requirements to October 1, 2022. Although lenders now have an additional seven months to abide by the updated conditions, several other major changes on the horizon will cause a seismic shift in how lenders and borrowers interact with and submit tax return verification requests.
Presented by: CoreLogic
Two specific areas LoanLogics focused on in recent years include an on-demand document processing technology and enhanced automation for the Home Mortgage Disclosure Act reporting and generation of Loan Application Registers, which enable lenders to automate more than 90% of their HMDA review tasks.
Private equity firm Sun Capital Partners acquired LoanLogics in 2021 for an undisclosed amount.
