Inefficient systems, errors, and delays have resulted in $7.8 billion in higher costs to consumers
JACKSONVILLE, FLORIDA / ACCESS Newswire / July 29, 2025 / LoanLogics, a leader in due diligence, audit software, and automation solutions for the mortgage industry, has compiled internal data showing 11.5% of all U.S. mortgage loan file content was missing or erroneous over the last 10 years. Based on analysis of industry data, the company estimates that inefficient systems, loan file errors, and resulting delays throughout the mortgage loan process translate to approximately $7.8 billion in higher costs to consumers.
For its analysis of loan file content, LoanLogics examined data for 2014, 2019, and 2024, evaluating “Doc to Data” discrepancies where information claimed in a file is incorrect or missing, and “Doc to Doc” discrepancies where documentation claimed to be part of a file is incorrect or missing.
Discrepancy Type | 2014 | 2019 | 2024 | Decade AVG |
Doc to Data | 5.2% | 6.9% | 5.0% | 5.7% |
Doc to Doc | 4.5% | 6.4% | 6.4% | 5.76% |
Combined | 9.7% | 13.3% | 11.4% | 11.46% |
“Our results show zero material improvement in loan file quality after a decade of industry investment and supposed innovation,” said Craig Riddell, EVP of Market Development at LoanLogics. “A common challenge with recent technology investment is inappropriate application. Poor results and redundancy are the by-product of incomplete or poor training, rushed implementation, and aging integrations, leading to unexpected and costly data conflicts that necessitate manual intervention.”
Of note, the combined error rate for Doc to Data and Doc to Doc transfers jumped from 9.7% in 2014 to 13.3% in 2019, before falling back to 11.4% in 2024.
“The spike in error rates in 2019 correlates to higher mortgage volumes across the industry. This was likely due to fluctuations in inexperienced staff brought on to deal with the increased workload,” noted Roby Robertson, EVP of Origination Technology Strategy at LoanLogics. “Lenders responded to the reduced volume in 2024 with reductions in workforce, leading to more experienced and knowledgeable staff, and we saw error rates come down as a result but still close to the 10-year average.
“As we continue to see new creative lending approaches emerge to serve more and more of the borrower population, it is imperative that companies work to solve their data problems with better automation and technology,” Robertson added. “We are helping everyone from consumer-facing lenders to aftermarket loan purchasers and securitizers understand what’s broken in their files, and not merely identify issues, but also correct them.”
LoanLogics’ clients use its products to originate, manufacture, audit, and service loans, with more than half of all loans processed in the U.S. every year running through the company’s technologies. LoanLogics has extracted and organized nearly 16 billion data elements from unstructured data sources since 2005, with over 1.34 billion documents completed.
About LoanLogics
LoanLogics is a leader in asset integrity and investor-led business outcomes for the mortgage industry, providing technologies that automate critical mortgage manufacturing components including income calculation, document processing, and file integrity checks. These services help mortgage loan originators, large aggregators, investors, and GSEs reduce their overhead and overall portfolio risk. The company serves 700+ clients including 60 percent of the largest lenders in the U.S., with more than half of all loans processed running through LoanLogics technologies. To learn more, visit http://www.loanlogics.com.
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SOURCE: LoanLogics
