Paradatec, an AI-based document classification and data extraction technology company for mortgage loan processing, is joining CoreLogic to support CoreLogic HMDA Check, a loan auditing tool that leverages automation to help lenders comply with the Home Mortgage Disclosure Act (HMDA).
CoreLogic HMDA Check leverages Paradatec’s optical character recognition (OCR) data extraction technology to help automate HMDA reporting. Paradatec’s AI-based document classification and data extraction tools can quickly scan hundreds of loan files and capture applicable HMDA data for reporting in just seconds.
CoreLogic HMDA Check streamlines the Loan Application Register (LAR) reporting process by automatically inspecting more than 30 different loan origination document types for more than 100 HMDA reportable fields, including loan features such as loan term, interest rate and borrower information. HMDA Check then validates LAR data and highlights any discrepancies for the lender. It is configurable so the rules and reports produced can be adjusted to match a lender’s specific policies and documents.
During the COVID-19 pandemic, the Consumer Financial Protection Bureau (CFPB) gave lenders a break from reporting HMDA data so they could manage the shift to remote work. Starting in May 2021, however, lenders were again required to submit their loan data to the CFPB every quarter.
“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,” says Ryan Thomas, principal at CoreLogic. “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.”