Mortgage Banking Business Intelligence and MIS Solution
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Transcript of Mortgage Banking Business Intelligence and MIS Solution
R E T A I L F I N A N C I A L S E R V I C E S
Mortgage Banking
Business Intelligence and MIS Solution
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Outline
Introduction - Who we are
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Introduction – Who we are
Orbit Systems is a Columbus, OH based Business Intelligence
company
Business domain expertise in Financial Services, Healthcare and
Retail
Dedicated practice with trained & certified BI professionals
including Data Warehouse architects, ETL/Report developers &
SME
Strategic partnerships – IBM, Oracle, Informatica
Cater to Fortune 500 clients
Our recent experience of successful business intelligence
implementation at Chase Home Finance gives us a strong foothold in the
MBBI domain. We have the domain knowledge as well as the technical
expertise to make it happen. We know the reporting needs of a
Mortgage company, what is needed by their management to make
business decisions in this fast changing environment.
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Introduction – What we do
We implement custom tailored Business Intelligence solution
Not just technical solution. We bring business knowledge
We implement BI solution that bridges the gap between
management and daily operations & provides single point of
access for reporting
A solution for everyone in the organization (Right tools for the right
user):
Executives - Our analytics helps business decision-makers analyze reliable,
timely information on day to day business activities
Power Users - Analysts focus on analysis not on data gathering.
Operations
We build Workflow management tools to:
Drive operational efficiencies
Save cost by additional visibility on expense
Accelerated time-to-results with Orbit’s domain knowledge of
the mortgage industry combined with technical expertise
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Introduction – How do we do IT
Custom tailored solution catered to client needs
1. GAP Analysis => Recommend Solution => Phased
implementation
2. Get down to business => Iterative Approach (Spiral)
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Introduction – Approach
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Mortgage Banking
People are feeling the pain
Rates are all time low
Higher focus of cost savings
Changing business landscape => drives better understand the business
Focus on “Do more with less”; Higher productivity and efficiency
Government initiatives & regulations & audit scrutiny
Mergers and acquisitions
Bankruptcy and fear in the environment
Risk : Credit risk : consumer and bank
Mortgage and servicing valuation
Loss Reserves calculations,
Capacity Models – Staffing (ABC models)
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Mortgage Banking
Loss Mitigation and mortgage modification
MHA – Making house affordable,
TMQ - Trial Modification Qualifier
Collections (inbound and outbound) tracking
Call Center metrics
mortgage companies have data scattered—in different forms and
systems
The combination of compliance requirements, a competitive business
environment, the sub-prime credit crunch and the need for stronger management
will drive retail banks' investment in business intelligence software.
Furthermore, ever-increasing regulatory pressures on financial services companies
make it all the more important for banks to have risk management, fraud
prevention, and anti-money laundering systems in place.
The need for comprehensive Business Intelligence in Mortgage industry is now
needed more than ever. The dynamic nature of mortgage business requires timely
access to accurate information which is consistent throughout the organization.
Interest rate changes: Affects call volume, payoffs and loan originations.
Federal Initiatives: Affects on mortgage modifications, and delinquent loans.
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Business Intelligence
Drive Business Performance
Higher Business value
Cost savings / analysis
36 percent of managers state that they have the right information available to
them to run their business
without the right analysis, reporting tools and simplified access
integrates the mortgage company’s own data and provides a unified business
intelligence
Provide data collection mechanisms
standardized reports that deliver insight
Visibility into business operations
bridges gaps between management and operational
Multi-tiered reporting in one solution
Data integrity and consistency of reports and metrics
Focus on BI Architecture , not data warehouse (technical) architecture
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Business Intelligence - MIS
Better risk analysis based on:
LTV geographic location
Property Valuations
Credit Ratings
Performance based incentive
Loan Analysis by Channel – Broker vs. Self
Gain insights quickly—View your key business drivers from a single source through
the Cognos ReportNet dashboard.
it tracks and monitors operational risk, and provides a more sophisticated and
consolidated picture of risk exposure across all LOBs
To secure the reports they need, these managers often
have to work extensively with their IT departments, sacrificing
both time and opportunity.
• Interest rate movements.
• Pipeline volumes.
• Processing efficiency.
• Performance by region and broker.
• Customer satisfaction.
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Success Stories - Challenge
Numerous data silos throughout business areas
Data scattered in multiple forms – MS Access, excel, emails.
Data consistency (or lack thereof) – Everyone had different number to report,
human error
Low Customer Satisfaction due to lack of accountability
Lower customer loyalty due to lack of data access in customer relations group
Higher customer escalated complaints
Low self service channel utilization (e.g. IVR, Web)
Higher workforce attrition resulting in lower productivity and efficiency
Access to consistent information for rating agencies and PMSR valuations
Unmanageable T & E expenses
No financial oversight on the staffing process
No financial accountability on operational manager
Misalignment / distributed BI environment
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Success Stories - Challenge
Lack of intelligence on customer contacts
Lack of analytics on collector / banker / call center behavior
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Success Stories - Solution
Facilitated merger activity
Consistent reporting for call centers across
Drove accurate headcount forecasting by Product and Channel
Visibility into staffing process resulting in lower headcount expense
Reduced repeat caller volume
Provided mechanism to allocate expenses across business units based on drivers
Drive better data capture via business process improvements
Created workflow management systems (CSTS, ERT, ERG)
Web based report delivery system
Report usage tracking –
ALL YOUR REPORTS: ONE INTERFACE
support financial analysis, customer intelligence systems and more formalized
performance and risk management, have all collectively become an important
organizational imperative.
This has resulted in a focus on establishing efficient sales channels, improving the
quality of customer service and maintaining high levels of customer retention. A
front-office focus means that distribution channels and customer relationships -
cross/up-selling and the ability to search for new potential growth segments - are
becoming increasingly critical to a bank's success. This requires an improved and
more complete understanding of the consumers of banking services, and the
ability to act on that information.
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Success Stories - Solution
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Mortgage BI - Implementation
Consolidation of data into single repository
Data cleansing
data integration, metadata management, and data store infrastructure will be vital
to create this comprehensive view
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BI Architecture
Mortgage BankingData Warehouse
OLAP Cubes AnalyticalReports
StandardizedReports
Ad hocReports
IVR Call Quality
Workforce MgmtCMS
Call Center
CustomerSatisfaction
Customer Metrics
CRM
Cards
Auto
Other LOB
WorkflowMgmt
Business Apps
ForecastingPlanning
Financial EDW
Enterprise Applications
HRMS Accounting
Other Sources
ExternalVendors
ManualFeeds
DownstreamSystems
Servicing
Default
REO / Losses
Collections
Originations
Portfolio
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BI Architecture
Mortgage BankingData Warehouse
PerformanceMart
MARKETING
- Cross Sell Opportunities- Marketing Campaigns
- Churn Analysis- Zone Analysis- Segmentation
CREDIT RISK
- Cross LOB Risk Analysis- Early Warning Indicators
- Consumer Credit Risk Analysis
FinanceMart
Call CenterMart
CustomerMart
ProductMart
PRODUCT MGMT
- Product Profitability- Portfolio Analysis- Channel Reporting
CREDIT RISK
- Cross LOB Risk Analysis- Product Risk Analysis
EXECUTIVE
- Dashboards- KPI Analysis
- Business Reviews- Rating Agencies
OPERATIONS
- Scorecards- Performance Trending
- Initiatives
FINANCIAL ANALYSIS
- Actual / Forecast Analysis- Headcount Reporting- Workforce Planning
- P & L Statements- Balance Sheet
- Planning Initiatives
OPERATIONS
- Call Analytics- Customer Satisfaction- Workforce Scheduling
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Cross Sectional Analytics : Customer / Product Affinity, Cross LOB Analysis, Operation / Finance Analysis, Co relational Analytics
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BI Solution – Analytical Reporting
OLAP Cubes
Call Center Metrics
Portfolio Tracking
Financial (P&L and Balance Sheet)
Headcount
Default Portfolio Tracking
Bankruptcy & Foreclosure
Collections
Loss Mitigation / Losses – Payment to Vendors
Business View for Power Users
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BI Solution – Operational Reporting
Daily Delinquency Trends
Pipeline reports by products
Daily Waterfall
Volume and UPB trends by lien an LTV
Daily Potential Delinquency Reports (POTS)
Daily REO aging report
Good Bank / Bad Bank Reporting
Escrow Administration
Hazard insurance reporting
Performance Reviews (PMAC Scores)
Portfolio Trends (Different Portfolio, Loan Type cuts)
Delinquency (Outstanding, 1-29, 30+ buckets)
Roll Rates (30-59, 60-89, etc…)
Loss Analysis - Loss Composition, Writedowns, Loss Severity, Short Sale / Settlements
Inventories – Foreclosures, Bankruptcy, REO
Loss Mitigation – Modifications, Forbearance, Reinstated, Deed in Lieu, Short Payoff
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BI Solution – Analytical Reporting
Non-performing assets as a percentage of receivables
Net charge-offs as a percentage of average receivables
Reserves as a percentage of receivables
Provisions and net charge-offs
Aging of advances
Financial quantification of default pipeline
Reserve level analysis based on historical loss data and comparisons to risk pipeline
Occupancy status
Fraud Prevention – Check verification, dormant accounts,
Cross Sell management, incentives, tracking, compensation
Owned vs. non-owned portfolio analysis
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BI Solution –Executive Reporting
Business Reviews
Site Scorecards,
Historical Trends, comparisons
MBA & Rating Agency Reviews
JDPower Metrics
Product Profitability
Real Time Unified Dashboard
Attrition Reporting
P & E and KPI
Merger / Integration
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Introduction – Approach
Phase1:KickoffWorkshop:Theworkshopwillinitiatetheengagement.Theonedaywork-shopwillinvolveahighlevelunderstandingoftheclient’sstrategy,expectations,validationoftheagendaandappointmentoftheclient’scontacts(projectparticipants)forinterviews.
Phase2:StudyandResearch:InphasetwoPolariswillperformacomprehensiveinventoryassessmentstudy,understandtheclient’sbusinessplans,productgapsandtechnologyrequirementscross10days.
Phase3:AnalysisandBlueprintDevelopment:InphasethreePolariswillanalyzetheinformationgatheredtocomeupwithrecommendationsfortheclient,theoverallblue-printforthedeploymentoftheproduct,effortforthegapsandprioritization(4days–overlapwithPhase2)
Phase4:FinalPresentation:ThePolaristeamwillpresentitsanalysisandfindingsanddiscussthesamewiththeclientandincorporatetheirfeedback.Thiswillbeatwoworkingdaypr
ocess.