Sorry, the dog ate my loan paperwork

“Your honor, my dog ate my loan paperwork.”

Sounds laughable, but check it out: There are at least $5 billion worth of student loans that judges could wipe away because of missing documentation, according to The New York Times.

In fact, judges have already started dismissing lawsuits against students. So if you’re a student lender, right now is the time to make sure you aren’t relying on paper-based documents.

Students staring at their phones and researching their loan statuses is going to blow away the whole Pokémon Go phenomenon. Look for videos of students walking into walls, lakes, and doors soon.

Goodbye paper, hello accountability

Right now is also the time to make sure you’re capturing all loan information – from paper or electronic sources – electronically in a central location. There are just too many costs and risks associated with paper, from paying for expensive storage facilities to being vulnerable to natural disasters like tornadoes and floods.

By optimizing your loan processing with the right enterprise content management (ECM) solution, not only can you ensure you recuperate your loan, you can also generate savings. We’ve seen customers save hundreds of thousands of dollars annually in paper costs alone!

Or maybe your issue is that you have to pass the documentation to third parties or partners. That’s where things like workflow management come in handy. Workflow automatically ensures your partners return documentation that is complete and accurate, so you can focus on more important goals, like finding a new dog trainer.

This isn’t a new conundrum, it’s just new to student lending. Back in 2010, we wrote about how homeowners were using the phrase “Show me the note” to fight foreclosures. And for lenders, no documentation means no loan.

Don’t think it can happen to your organization? The Department of Veteran Affairs didn’t think so either. Then it lost half a million loan files.

But $5 billion worth of loans? That’s one hungry dog!

Michelle Harbinak Shapiro

Michelle Harbinak Shapiro

Michelle Shapiro brings more than 15 years of experience in the banking industry to her role as Financial Services marketing portfolio manager at Hyland. Her mission is to share best practices and evangelize the power of ECM as a tool for banks, credit unions and lenders to help automate paper-based processes and proactively manage regulations.

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