BSI Financial, a mortgage fintech platform, and Bizzy Labs, an affiliate, launched enhancements to its compliance technology to streamline and automate the loan boarding process, specifically designed for mortgage servicing rights (MSR) acquisitions. Libretto, a regulatory technology solution aimed at enhancing loan portfolio quality, has been improved to incorporate “dozens” of business rules to check for common errors and discrepancies in the loan boarding process.
“Our latest enhancement to Libretto leverages generative AI [artificial intelligence] capabilities to provide the fastest and most accurate loan data boarding available in the industry,” BSI Financial Services and Bizzy Labs founder and CEO Gagan Sharma said in a release. “This upgrade perfectly illustrates our commitment to improving loan performance and profitability for our MSR acquisition clients.”
The enhancements also implemented end-to-end reporting to give all internal business and compliance stakeholders, including prior servicers, monitoring abilities for status updates on the loans. Libretto also monitors for boarding issues and provides a way to deliver almost instant and accurate results.
“I’m excited that we’ve achieved this milestone and see broader uses beyond the boarding phase,” BSI Product Manager Lead Financial Anwar Ali said. “Libretto’s ability to scan for compliance risks and deadlines using an entire library of compliance and business rule sets is second to none.”
Along with leveraging AI, Libretto also uses optical character recognition and workflow automations tools. It is integrated with multiple data sources, such as the uniform loan deliver dataset, data tapes, and documents images, to automatically compare and verify extracted data. This allows Libretto to improve the speed and accuracy of the loan boarding process, as well as reduce compliance risk. Additionally, when an issue is detected, Libretto will automatically reach out to prior servicers to correct the error.
“Through collaboration and integration with open-source technologies, we will continue to evolve and build our platform as a foundation for bringing efficiency and accuracy to our industry stakeholders,” Sharma said.
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