2014-2015 Global Banking Outlook Transforming Banks Redefining Banking EY
Transforming Mortgage Banking - Newgen...
Transcript of Transforming Mortgage Banking - Newgen...
Introduction
Transforming Mortgage Banking
The Mortgage Banking Industry is extremely
specialized and dynamic. It is highly competitive and is
defined by the existence of a large number of niche
players who focus only on lending without considering
subsidizing losses in other departments such as
traditional banking. Organizations engaged in
mortgage banking may vary in size, from small to
exceptionally large, with loan volumes sometimes
exceeding that of a nationwide commercial bank.
This vastly results in these organizations being prone
to effects of global market fluctuations. The recent
financial crisis, credit crunch and the real estate bubble
burst therefore have posed unprecedented challenges
for this industry. These crises have called for
organizations to develop and deploy standard policies
and procedures. Most mortgage lenders today are in
the process of consolidating and streamlining their
operations, necessitated by large write-offs, regulatory
pressures and changed market conditions.
Customer centricity and engagement has also become
a priority for mortgage organizations today. Non-
traditional ways of mortgage origination have become
imperative to the growth of any lender. Deloitte in a
recent case study found that 70% of consumers shop
for mortgage loans on the internet. 73% customers
also agreed that shopping for loans online is more
comfortable than traditional options. This further
emphasizes the competitiveness of today's mortgage
environment where speed is critical to revenue. In a
tumultuous regulatory landscape and competitive
environment, lenders will need platforms and tools
that can adapt to the changing regulatory landscape,
reduce costs, improve throughput time, and evolve to
achieve customer satisfaction.
Leveraging the Power of BPM & Case Management
Key Challenges in Mortgage Processing
Newgen Mortgage Process Automation Framework
The mortgage industry today is racked with many
challenges that impede efficient and cost effective
processing.
• Increased need for innovative methods to engage
customers and create the right differentiation to
remain competitive within the mortgage industry
• Provide non-traditional channels to customers to
participate in the application process
• Manual or semi-automated processes leading to
high costs and low scalability associated with key
activities in the lending process; Lenders are
seeing the need to accelerate mortgage closing
time to reduce operating costs and accelerate
cycle times;
Document intensive or paper intensive
processes make multi-branch operations
cumbersome and inefficient
Newgen's Mortgage Process Automation Framework is
built on an award winning Business Process
Management (BPM) platform and leverages Newgen's
globally recognized Case Management, Imaging,
Business Rules, and Reporting tools to streamline
mortgage processing from sale to closing.
The solution supports multi-channel mortgage
origination trough electronic/mobile submission of
documents, eliminating manual intervention and
facilitating straight through processing. It further
streamlines the underwriting process by ensuring
visibility of critical information across the organization,
thereby improving the overall process efficiency.
Newgen leverages its deep domain experience to
deliver a unified Mortgage framework that automates
key mortgage processes, drives revenue growth
through innovative features such as mobile capture
and ensures compliance to rising regulatory standards
such as CFPB & DoddFrank.
Acquisition and Origination
• Multi-channel capture for origination including
mobile capture/upload
• Mobile application for customer/sales for
capturing W2, driver's license and supporting
documentation on the go
• 1003 e-data entry with Online Portal and E-SIGN
capabilities
• Support for more than 400 document types
required for mortgage processing
• Automated document packaging, which includes
audit and verification of documentation packages
to ensure quality for investor packaging
• Seamless integration with credit bureaus, external
systems, and third party applications
• Ordering Vendor Services (Credit, Title, Deed,
Appraisals, Fraud Guard Report)
• Automated flood zone & insurance check with
notifications
Loan Processing
• Built-in agile rules engine for straight-through
pre-approval of the application
• Multiple review levels, To-Do lists, and exception
handling to minimize rework and manual errorso• Rules Engine to support 360 underwriting for
Credit, Income, and Collateral, and Case
Management for ad-hoc conditions/exceptions
• Integration with LOS, underwriting and external
systems
• Automated document generation and review of
offer notes & counter offers
• Pre-configured Dodd Frank eligibility, compliance
& disclosures such as ATR/QM Rule, 2013 HOEPA
Rule, etc.
• Comprehensive review, exception resolution and
approval for generated HUD1 /HUD1A
documents
• Monitoring and tracking of insurance
Credit-Risk Analysis for adherence to
Bank/Central Bank credit policies
Underwriting & Conditions/Exception
Resolution are often complex and cannot be
managed through manual verifications
Creation of Borrower notes and Circulation of
Offer Letters to decision makers for approval
are tedious and time consuming processes
• Disjointed steps for credit bureau and external
system checks for vendor services, appraisals,
disclosures etc.
• Increased regulatory oversight and adherence to
compliance acts such as Dodd Frank Act of Wall
Street Reformation
• Small size & large volumes of mortgages cause
challenges in processing; Assessment of small
ticket loans incurs high operational costs which
are disproportionate to the revenue generated;
Solution Benefits
Improve Efficiency and Increase Processing Volume
• Electronic movement of applications in paperless
environment using rules-driven Case
Management to maximize efficiency
• Unified view of transactions & documentation
with checks and balances to avoid re-work and
reduce processing times
• Automated routing & straight through
processing, driven through configurable business
rules to improve decision making and reduce
manual errors
Gain Visibility and Process Controls
• 360 degree view of process with real-time visual
dashboards and functional metrics
• Enhanced productivity and ROI with well defined
SLAs and KPIs for process and people
performance
• Overarching view of SLA compliance, key
performance indexes etc.
• Automatic alerts and notifications
• Escalation and exception management
Newgen Mortgage Process Automation Framework
Mortgage Initiation Channels
Portal Broker BranchMobile
Unified user experience across loca�ons / channels
End to End, Unified & Paperless Mortgage Process
Decisions/Approvals
Dashboards & Reports
Alerts &No�fica�ons
Workflow, Rule Engine, Form
Builder
Integra�on Adaptors
Enterprise Content
Management
Integra�on to Mul�ple SystemsCore, LOS, Credit Bureaus, AML, Broker Engine
Pre-configured Dodd Frank Compliance
Mobile Capture
Online Dashboards for stakeholders
Regulatory Disclosures
Online 1003 data entry
Archiving and Indexing 100400 Docs Stack
Enhance Customer Experience
• Multi-channel data and document capture
accepting loan applications / documents via
broker portal, emails, faxes, and web scanning
• Online Portal for 1003 data entry including E-Sign
capabilities
• Seamless integration with Core LOS systems,
enterprise systems and third party credit bureaus
• Easy and efficient online tracking of applications
• Improve response times to provide better
customer service with a flexible and agile solution
Improve Customer Engagement through Mobility
• Mobile Document Capture application for first-
time-right collection of data to reduce data
quality issues and accelerate cycle times
• Mobile interface to engage customers to self-
service and initiate their mortgage applications
• Mobile application interface for brokers to
process applications on the go thus reducing
processing costs
Improve Adaptability to Changing Regulatory
Requirements
• Pre-configured tools for CFPB/Dodd Frank
Compliance ensures regulatory compliance
• Configurable business rules provide agility to
adapt to changing regulatory landscape
About Newgen
• Leading Global Provider of Business Process Management (BPM), Enterprise Content Management (ECM) & Customer Communication Management (CCM)
• 1000+ installations across 57 countries
• Solutions for Banking, Insurance, Healthcare, BPO/SSCs, Telecom and Government
• Credited with some of the world's largest implementations
• Innovative culture, consistent R&D investments, 40 patents
• Employee strength 1600+
• Certified for ISO 9001:2008, ISO 27001:2005 and CMMI Level3
SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT
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