Lending Case Study
Newbold Advisors
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 following:
• 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• Existing state procedures were either out of date and/or not consistently followed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.
About Newbold
Headquarters Office
© Copyright 2021 Newbold Advisors