Lender Case Study
The Problem:
A $4B Financial Institution faced an increase in pre-closing QA audit issues originating from the Processing department.
These issues were negatively impacting business as follows:
- Increased closing turn times, FTE time and production costs
- Decreased referrals due to dissatisfied borrowers and third-parties unhappy with delayed closing times
Approach:
The client engaged Newbold’s subject matter experts to employ industry best practice expertise in evaluating current processing operations and in making recommendations for improvement. We accomplished this process as follows:
- Met with key management and processing team members in onsite organizational and operational meetings
- Analyzed department workflows
- Conducted full reviews of all team policies and procedures, as well as relevant documentation
- Facilitated a full whiteboard session with lender on end-to-end processes and systems
- Identified process requirements, guideline adherence, system utilization, current training methodology and QA, and post-close auditing procedures
Observations:
- Increased pandemic volume over 18 months led to hiring many new staff members without deep mortgage experience. They were trained largely through co-workers’ show and tell
- Existing state procedures were either out of date and/or not consistently followed
- Staff failed to fully utilize LOS to leverage configurable functionality to reduce manual work around or unnecessary hand-offs
Recommendations:
- Develop a targeted Processing 101 training protocol
- Re-align role to responsibility
- Institute a daily processors touchpoint meeting with manager to quickly review pipeline and daily priorities
- Automate LOS checklists to eliminate manual/paper checklist and data duplication
- Create training to include process improvement tricks in current LOS
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