Manual Processes vs. STP in MortgageProcessing If these tasks are completed manually, there is no STP since every component is touched by a person. When looking at this same process with automation, we use tasks to introduce measurements. For document classification, the measurementcanbea simplepercentageofdocumentsclassifiedcorrectlyvs. incorrectly. Weusesophisticated statistical models to measure accuracy and establish a “threshold” that governs which documents have a high likelihood of being classified correctly (often at 98% or 99% accuracy), and therefore, canmovethroughwithnomanualeffortinvolved. If a single loan service staff can process 100 documents per hour and the total number of documents received is 100,000 in an eight hour time period, this means that the servicer must employ approximately 125 staff to process them during an 8-hour workday. With automation measured with the document-level success criteria, we can supposethata well-tunedsystemcaneffectivelyremove70%ofthatwork. If document separation is involved, it is more complex since we must add a new measurement to the percentage of documents successfully classified. By definition, the system cannot produce more than 70% STPfordocumentclassification.Thisis the absolutemaximumpresuming100%STPfordocumentseparation; however, this is never the case because there will also be errors, even with sophisticated systems. The key is thattheerrorisknowable,andtherefore, controllable. Presuming that the system can accurately separate 85% of documents (again measured at 98% or 99% accuracy) this means that about 56% of totaleffort is eliminated and can go straight through with no manual review. In this scenario, the time to separate documents reduces the throughput of each staff to around 60 perhour.Sototaldailystafftimeisreducedfromaround1660to733.Thissoundsimpressive. Even more impressive is that, through measurable, controllable automation, we are able to sustain a 98% to 99%accuracy rate of that output. Compared with manual processes that can range in accuracy from 93% to 95%,automationeffectivelyreduceserrorbyaround75%(from5%-7%errorto1%to2%). 19 Straight Through Processing - Document Automation