Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

Barcoded Loan Documents

Some loan origination systems (LOS) make it possible to generate loan documents with embedded barcodes. Barcodes can contain a variety of information, such as account number and document type, which could be useful for expediting a financial institution’s loan document management workflow.

Document Types & Barcodes

Not all loan documents contain barcodes. In fact, many documents provided by customers, members, vendors, and other third parties are unlikely to have barcodes printed on them. Here are a few examples of documents that may not contain barcodes:

  • Credit reports
  • Title work
  • Appraisals
  • Lien searches
  • Flood zone determinations

A financial institution’s documentation requirements combined with its loan origination system’s capabilities are key factors in determining which documents will contain barcodes. In general, documents that commonly contain barcodes include:

  • Mortgage documents
  • Deeds of trust
  • Promissory notes
  • Security agreements
  • Disclosures

Why Barcoded Loan Documents are Useful

Some document imaging systems, such as AccuAccount from Alogent, can use information from a loan document’s barcodes to accelerate the imaging process. When used in tandem with an effective scanning strategy, barcoded loan documents can deliver multiple efficiencies for the financial institution:

Streamlined document indexing: Barcoded information can help an imaging system understand which type of document has been scanned, reducing the amount of manual indexing and reliance on document-specific cover sheets.

Increased accuracy: Reduced manual indexing means that there is less room for human oversight. In many cases, this results in better, faster indexing of documents.

Reduced administrative work: Multiplied across hundreds or thousands of documents over the course of a year, barcoded loan documents can deliver a considerable efficiency boost for financial institutions. 

Barcodes vs. eSign Integrations

From a document imaging standpoint, barcodes are most useful for financial institutions that print and digitize paper loan documents. For banks and credit unions that prefer an eSign approach, barcodes may be less relevant. Integrating an eSign product to a document management system like AccuAccount lessens the need to print and scan paper documents. Instead, eSigned documents are pushed in a package that contains both the images and an indexing file. Many financial institutions take a “hybrid” approach, which includes barcoded loan documents, barcoded cover sheets, and eSign interfaces.

Browse additional banking definitions or check out Alogent’s Innovation Hub, which contains blog articles, industry papers, and much more.

 

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