How a leading national MORTGAGE LENDER drastically reduced its loan cycle time and INCREASED PRODUCTIVITY UP TO
Our customer is a full-service national mortgage lender and is among the top 10 highest-volume mortgage lenders in America. They originate loans through various channels and transaction types, including a network of retail branches, wholesale lending, correspondent lending, and a consumer-direct centralized operation. They specialize in a variety of loan programs for purchase and refinance such as conforming, jumbo, and government products.
Today, it takes too long to process a mortgage (approximately around 45-60 days) considering the enormous amount of documents that are handled on a day-to-day basis. The need of the hour was to simplify the mortgage processing process and operate with more efficiency. Our customer’s key business goal was to ensure they reduce their loan cycle time drastically and increase productivity.
Changepond carried out a pilot study to identify the exact root cause of pain areas and introduced automation in their existing processing cycle.
For the pilot study, a cohort of 5 processors was selected. Adequate care was taken to ensure that the five processors were of different profiles – one was a Rock star, one was a bottom performer, one was a tenured processor, one was an experienced processor, and another was new to the lender and the final processor handled one category of loans.
At any point in time, every processor would be handling around 110-125 loans. Every processor had a different approach to prioritizing the loans. i.e. which loan to work on today? Which borrower to call? The whole process lacked a uniform approach. The high-performing processor developed their own strategy for maximizing the funded loans.
Changepond developed a proprietary algorithm to prioritize the loans that the processor needs to work on every day. Whenever each processor logged in at the start of the day, based on the organization's intelligence they would be presented with a prioritized list of loans they should work on that particular day.
A comparison was made amongst the chosen cohort and similar profiled processors, who were not using the new system allowed them to improve their overall performance. Changepond’s detailed solution improved the customer productivity range between 20 to 30% on all measures. Based on the results,
Changepond’s solution has ensured flexibility and extendibility that would abundantly help the customer’s business as they plan to accommodate more clients. The customer can now handle a large volume of loans with ease. The client can foresee a substantial increase in ROI and a reduction in their loan cycle time in lot more years to come.
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