Lending Technology Saves Loans and Improves Volume for GSF Mortgage:
Non-Compliance Avoided with Document Management

Who:  Chad Jampedro, Vice President of Operations
GSF Mortgage Corp., Schaumburg, Ill.

When:  DocuTech customer since December 2005

What:  GSF Mortgage converted to DocuTech’s ConformX®, a Web-based compliance and mortgage document system, from a competitor. ConformX immediately shortened the loan process for GSF, integrated smoothly with their existing LOS, and saved GSF from losing loan sales as a result of noncompliance. Through its partnership, DocuTech has become GSF’s primary document provider and a part of its business culture.

Contacts:

David Jones
678.781.7238
djones@williammills.com

Elizabeth Salter
678.781.7224
elizabeth@williammills.com

The Challenge:

GSF Mortgage Corp. is a full-service mortgage company based in Schaumberg, Ill. with more than 20 locations nationwide. As the company’s loans increased in 2005, GSF became displeased with its previous document provider’s inability to consistently provide updated and compliant documents. As a result, GSF began searching for a new provider. At the recommendation of the lender’s LOS provider, DataTrac®, GSF investigated DocuTech and its ConformX document and compliance solution.

“Our previous document provider was expensive and made it quite difficult to maintain updated documents,” said Chad Jampedro, Vice President of Operations for GSF Mortgage. “It was extremely hard to provide compliant documents, which in turn, negatively affected our business practices. From the beginning, DocuTech ensured that all parties involved would benefit from its document system.”

The ultimate goal of GSF is to satisfy borrowers with an efficient loan process as well as investors by providing salable loans. Through due diligence, GSF discovered that DocuTech provided a cost-effective solution that guaranteed accurate and compliant documents, which are essential not only to the business of GSF, but also to its investors.

The Solution:

Although GSF considered other companies, DocuTech provided the best overall platform, while also being the most cost-efficient. DocuTech’s ConformX® is a Web-based solution that transforms an Internet connection into a 24-hour closing office. It guarantees that all loan document sets are compliant with all federal and state regulations and supports e-documents, prepayment penalty management and disclosures.

During the implementation process, DocuTech listened to all of GSF’s requests and worked with the lender to satisfy all of their needs. The DocuTech implementation began in December 2005 and the painless process exceeded GSF’s expectations in both the speed of implementation and the quality of the integration with DataTrac.

“As our dedication to customer service continues to be a top priority for our company, we strongly believe that we can connect to our customers’ specific goals and needs and assist them in accomplishing their financial obligations,” said Jampedro. “DocuTech offers a complete document solution that is backed up by the best guarantee in the business. ConformX greatly enhances our productivity and works better with our LOS than our last provider”

During the integration process, ConformX flowed seamlessly with GSF’s internal audit system. DocuTech’s guaranteed compliance provides GSF with a “safety net” that the correct documents are available from loan origination through closing; something its previous document provider had trouble delivering and maintaining.

The Results:

Since the first loan closed in early 2006, DocuTech has become GSF’s primary document provider. According to Jampedro, GSF is very pleased with the company’s service and described the partnership as a “homerun.” Using ConformX has saved GSF staffing resources, saved potentially unfundable loans and sped up loan processing, resulting in increased volume compared to their previous provider.

Through this partnership, GSF has been able to outsource additional needs to DocuTech, and in return, reduce the workload for GSF staff. With constant changes in the market, DocuTech saves GSF additional manpower and additional legal staff that would have been required to manually verify the compliance of documents. As a result, the lender can concentrate more energy and resources on the company’s core business.

“We could not have asked for a better situation with DocuTech; they are able to improve the workload of team members, allowing each of us to effectively serve our rapidly growing customer base,” said Jampedro. “We follow the mantra that ‘documents sell loans.’ We are 100 percent convinced that DocuTech helps us do that efficiently.”

DocuTech has also saved GSF several loan sales. For example, in Massachusetts, ConformX detected a regulation conflict concerning the configuration of pre-payment penalties and closing costs that would have cost GSF the loan sale. Due to ConformX immediately detecting this situation and informing GSF, they made the necessary adjustments to the loan and closed the deal.

In the GSF loan process, an aspect that affects the company’s bottom line is the “velocity of the file.” The velocity refers to how quickly the loan moves through the system. If GSF is conducting those calculations manually and constantly questioning the integrity of the documents, it slows down the velocity of that file. This affects a number of participants, including brokers and loan applicants, who are not served efficiently. Because of the tight integration with DataTrac, the required data is automatically pulled from the LOS eliminating the need to re-key data or manually inspect each document file. This increases the velocity of the process that leads to more profit.

“Through our partnership, DocuTech has served as counsel to us. Its system allows us to optimize every financial opportunity available,” continued Jampedro. “DocuTech has enabled us to fulfill our customer obligations by positively affecting our loan process through its ability to eliminate data re-entry and expedite the workflow of our employees. I am impressed with the fact that we were able to consider DocuTech an extension to our business plan.”

About GSF Mortgage Corp.

Schaumburg, Ill.-based GSF Mortgage Corporation is a full-service mortgage company dedicated to expedient customer service throughout the entire loan process and is also committed to building lasting relationships with their client base. Committed to the needs of its clientele, GSF Mortgage provides fast mortgage processing with its online mortgage application feature.

For more information, please visit http://www.gsf-mortgage.com/.

About DocuTech

Since 1991, DocuTech Corp. (DocuTech) has provided outstanding compliance services and documentation technology for the mortgage industry. DocuTech's software interfaces with leading loan origination systems (LOS) and enables mortgage professionals to generate documents locally. DocuTech manages and secures all information needed for a loan, guaranteeing accuracy, security and compliance.

For more information visit the company's Web site at www.docutechcorp.com.

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