We recently started to image loan documents... however we do not have any procedures or a policy written. We have not started to destroy anything... because no one seems to really know what they are doing.

What things should be considered? Anyone have procedures they'd be willing to share? Any help would be appreciated!

1. Send a list of all documents that you are imaging to an attorney. Have them verify that an imaged copy is accepted in court for the state(s) you operate in.
2. Never destroy any documents until you've pulled some up from the platter/disc to verify that they are there. Nothing worse than finding out you had a bad platter and you've already destroyed all of the documents

We have a process that one person scans and indexes the documents and another person reviews and commits the documents.

We have already obtained a legal opinion regarding acceptability of imaged documents in court for the states we operate in.

Perhaps it is just being comfortable that our process works and taking the plunge to destroy documents.

When we first went to imaging, we held the docs for a full year before destroying. After we established good controls and procedures (and they were thoroughly tested), we starting destroying at 3 months.

The issue I mentioned with the bad platter happened months after the docs had been scanned and reviewed. Somehow the platter was corrupted and a decent amount of docs couldn't be recovered. Fortunately, we hadn't destroyed them yet. Just something to think about - maybe checking the platters before destroying the docs that are on them?

Would you be willing to share some of your controls and procedures...? You can email me...

If I had them, I would. Unfortunately, it was 3 banks ago and I don't have them anymore - sorry.

May I ask why you do loan imaging? What benefits have you received? Has it made work flow more efficient? I've been a big advocate of document imaging since we started check imaging, but the President does not want to do it because he sees it only as "buying a new toy" and that it would create more work for employees or even a new position.

At this point... we see no benefit. Although to get it approved we had a whole list of benefits. I think that the technology came before our folks knew exactly what to do with it. It takes a long... long... time to image one loan file. That does not make sense to me.

We would like to think we will save money making less copies, more vault space, easy access to file, etc... But we still have branches that copy the entire loan file prior to sending it to main office for processing. They like to have a copy in their office in case the customer calls with questions. Couldn't they achieve the same by pulling up the images? Most of our loan officers haven't even tried to retrieve the imaged documents yet... they still like to pull the paper file.

It is hard to teach old dogs new tricks! However... at some point they will have no choice!

Having shadow files at the branches can be a benefit...especially when docs get "misplaced" traveling from branch to image or even in same building. We have been imaging for several years now...we realized real quick tho to keep a file as well as the image. Why?

1) technical reasons
2) examiners don't care much for image files
3) mysterious disappearance

to name a few. It is quick and convenient for alot of applications, however if I'm reviewing a file for compliance, I will still revert to the hardcopy file as it is easier to look back and forth at docs than flipping images (JMHO)

We'be been imaging loan docs for about one year. Our primary reason was storage. I have found that it is much easier to pull the file off the computer than lug it out of the vault. Our OTS examiners liked it also, no worries about getting the files back into the vault at night. We burn the files onto a CD for them and they leave it when they are done.

Do you image everything or just key loan documents? How many index codes make up your list?

We image everything and have about 130 index codes. Every conceivable document has a specific index code. Problem is that oftentimes, the person scanning does not really understand what the document is that they're looking at. Two years into scanning and it's a mess. I think it's better to go with fewer index codes. Rather than have separate codes for hazard, flood, and car insurance - just have car insurance.

I would like to move this thread back to active status. We are looking at imaging loan documents and I would appreciate the pros and cons of the practice. In addition, which docs do you retain hard copy of: we are thinking original note and dots only.

We image all loan files in Adobe (.pdf) format. We do not index, but scan the files in the order the investor wants the documents.

Advantages - multiple access, storage, transportation (off-site review), disaster recovery, providing documents for attorneys, cpa's examiners, quality control, subpoenas, etc.

As an example, we had to provide 70 complete mortgage files for a quality control review. It took less than an hour to copy the 70 loan files to a directory and then burn 2 CD's. Cost - less than 50 cents for both CD's, and all 70 loan files fit in an overnight letter envelope. Compare that with appx. 25,000 pieces of paper and shipping to send copies.

Disadvantages - we have had documents occationally piggyback, and appraisal pictures are pathetic.

Did the original poster every get any policy and procedures? We start imaging (check and document) next month and I would be interested in any policies and/or proc that I can get my hands on.

Thanks in advance