Encapture announces a new data validation solution that will enhance compliance reporting in line with the expansion of the small business lending rule, Dodd-Frank 1071, addressing the increasing regulatory demands and shrinking margins faced by compliance teams. Building on the success of Encapture’s CRA and HMDA data validation solutions, this solution integrates with top Loan Origination Systems (LOS) from companies including nCino, Baker Hill, and Abrigo. Encapture offers an AI-driven solution to streamline manual data processes for financial institutions like Wells Fargo, Prosperity Bank, and Veritex.

1071 regulations are expected to significantly increase labor costs as compliance teams manually review each small business loan, with many financial institutions predicting they will need to nearly double their staff to handle the additional data fields and stricter scrutiny. 

“As 1071 regulations come into effect, it's crucial for financial institutions to start preparing now. Our expanded 1071 module, seamlessly integrated with major LOS platforms, offers a ready-to-deploy solution that eases the pressure on compliance teams,” said Will Robinson, CEO of Encapture. “We’re already partnering with key banks to help them stay ahead of these regulations and ensure data accuracy.”

 Encapture’s 1071 module simplifies compliance by automating the extraction and verification of demographic data from small business lending documents, allowing compliance teams to reduce manual labor and focus on strategic oversight. In order to bring a more comprehensive solution to the market, Encapture collaborated with top banks in their existing customer base like BankPlus, Century Bank, and others.

“We’re excited about this integration. It's going to help us get ready for the small business lending rule without having to bring on a ton of extra staff,” says Encapture customer, Marvin Tellez, CIO and SVP of Lending Systems and Product Development at Century Bank. “This partnership with Encapture will make our operations smoother, improve loan margins, and get us ahead of the game on upcoming regulations.

With Encapture’s updated module, banks can achieve a 90%+ efficiency gain for these new data requirements, reducing loan review time from one hour to just minutes. By automating the validation of 82 newly required data collection points for 1071, banks can avoid the need for additional staffing making intelligent automation an increasingly appealing alternative. 

Financial institutions including banks, credit unions, and lenders can ensure 100% loan review penetration through a process that is much more reliable than traditional, manual sampling methods by extracting data automatically from verified documents, reduce fraud false positives, increase lending capacity, and eliminate data scrubbing. To learn more about this solution visit https://encapture.com/compliance/.