DCS Capabilities, April 2011

About Distinctive Consulting Services

April, 2011

A Self-Certified, Woman-Owned, Small Business

DUNS: 963631697 NAICS: 541512, 541611

• Overview

• Our Value Proposition

• Industry Expertise

• Sample Project Summaries

• Biography

TABLE OF CONTENTS

• Biography

• Contact Information

2http://distinctiveconsultingservices.com

OVERVIEW

•Distinctive Consulting Services LLC provides

consulting services to the banking, lending,

insurance, and mortgage industries.

•In a world that encourages sameness, we work

with clients who take pride in doing things

differently, and better, than the competition.

•Our consulting professionals possess the ability

to successfully deliver to a diverse clientele.

•We apply both best practices and unique

approaches to our client and management

responsibilities.

•We distinguish ourselves with our deep industry

knowledge, our commitment to integrity, our

commitment to excellent work, and our

commitment to our clients’ success. And that is

our distinction.


OUR VALUE PROPOSITION

•We understand all aspects of financial industry operations and have years of combined experience working on policy and operations. We are experts from the internal workings of the industry’s verticals.

• We have re-engineered significant business functions and deployed business applications for small regional banks, large national banks, in the primary and secondary markets at mortgage companies, GSEs, and on Wall Street.

• We have demonstrated experience aligning • We have demonstrated experience aligning information technology strategy to an organization’s overall business strategy/goals.

• We know about problems that may not be readily apparent to the masses, yet have the potential to impact the industry significantly.

• We believe that we have tailored solutions to these problems, as well as for those that are well known.

• We are committed to making client and partner relationships positive and long lasting.


INDUSTRY EXPERTISE AND SERVICES

INDUSTRY LINE OF BUSINESS FUNCTIONAL SPECIALTIES CORE SERVICES

Banking Treasury Operations

Loan Operations

• New Business and Business

Line Start-Up

• Mergers

• Acquisitions

• Divestitures

• Key Performance Driver and

Performance Indicator Analysis

• Strategic

Roadmapping/Business

Transformation

• Business, Process, IT

Architecture Design and

Lending Auto

Consumer

Mortgage

Insurance Payment Operations

• Divestitures

• Wind-downs

• Outsourcings

• Regulatory and Legislative

Change Reviews

Architecture Design and

Development

• Process Design/Redesign/Re-

Engineering

• Organizational Structure Design

• Project Management

Mortgage Originations

Servicing

Secondary Market

Operations

Securitization/Trading

Settlement Operations


SAMPLE PROJECT SUMMARIES

Summary Functional Specialty/Core

Service Offering

Set up PMO and QA Function at a GSE New Business Line Start-Up

Implemented Web-Based Trading Business Transformation; Business,

Process, IT Architecture Design and

Development

Outsourcing Plan for Single Family Note Custody Operations Outsourcing Plan

Legislative Review and Impact Analysis for the U.S Treasury’s

“Home Affordable Modification”

Legislative Review

“Home Affordable Modification”

Assessed the Operational State and Functional Adequacy of

Lender Recertification for Federal Agency

Legislative and Regulatory Review

Designed DMS Strategy and Implementation Plan at GSE Business Transformation; Business,


Development

Wind-down of Trading Platform Wind-down

New Business Line Start-up at Regional Retail Bank New Business Line Start-Up

Authored Business Case for National Commercial Bank

Adoption of Electronic Mortgage Lending

Key Performance Driver and

Performance Indicator Analysis;

Business Transformation


SAMPLE PROJECT SUMMARIES, cont’d

Summary Functional Specialty/Core

Service Offering

Authored Business Case to Determine Feasibility of

Outsourcing GSE’s Single Family Loan Modification Settlement

Function

Key Performance Driver and

Performance Indicator Analysis;

Business Transformation

Program Manager for Home Affordable Foreclosure

Alternatives

Business Transformation; Business,


Development

Program Manager for Home Affordable Modification Program Business Transformation; Business,


7


Development

Program Manager for Reduction in State Foreclosure Timeline

Standards

Business Process


Summary As lead project manager, established a PMO and QA function. Scope of work

included the implementation of the planning, budgeting, reporting, and risk

management functions. Additionally, an initiative QA process was established to

monitor the software development and ensure timely delivery. The QA process

involved a measurement and metrics reporting function, qualitative reviews,

and artifact inspection.

Results The end result was reduced time to market delivery of business solutions,

improving on-time/on-budget project completion, eliminating unnecessary

Set up PMO and QA Function at a GSE

improving on-time/on-budget project completion, eliminating unnecessary

project work, and reducing project costs. Development model helped reduce

project costs by 10% and reduce average project duration from several months

to several weeks.


Summary Served as chief architect and program director for 8 month engagement that

entailed developing the future state business architecture, gathering

requirements, directing the RFP process, selecting the vendor, contracting the

vendor, and implementation. Technical team were able to leverage existing web-

services infrastructure to reduce total costs associated with implementation.

Results The end result was in addition to raising dealer’s profile among major MBS

trading participants, dealer was able to move 10% of trading activity from phone

to web-based trading, affording traders with improved ability to hedge their

Implemented Web-Based Trading

to web-based trading, affording traders with improved ability to hedge their

position real-time, intra-day. Platform was eventually integrated with new

Counterparty Credit Risk Management system, affording traders with a more

accurate credit risk picture during trading events.


Summary As lead business architect, created outsourcing execution plan for Government

Sponsored Entity (GSE) to outsource its Single Family mortgage Note Custody

operation. Activities included directing the RFP process, selecting the vendor, legal

contracting the vendor, conducting facilities due diligence reviews, developing external

communications strategy and plan, asset movement, operation wind-down, and staff

transition.

Results The end result was the GSE was able to achieve focus on core firm business

competencies while achieving a reduction in General and Administrative (G&A)

Outsourcing Plan for Single Family Note Custody Operations

competencies while achieving a reduction in General and Administrative (G&A)

expenses.


Summary As lead project manager, performed a review and impact analysis of U.S Treasury’s

“Home Affordable Modification Program” for a GSE’s Single Family mortgage business

line.

Results The end result was development of a multi-year transformation roadmap that included

completion of industry- critical infrastructure improvements to enable the GSE to

refinance more home mortgages, keeping more borrowers in homes.

Legislative Review and Impact Analysis for the U.S Treasury’s “Home Affordable

Modification” Program


Summary As lead architect on the project, team was chartered with:

•Assessing the current operational state and functional adequacy of the

system and business processes.

•Documenting deficiencies of the system and business processes against

agency guidelines.

•Providing future state strategic vision, business architecture, and business

Assessed the Operational State and Functional Adequacy of Lender Recertification for

Federal Agency

•Providing future state strategic vision, business architecture, and business

plan to resolve documented deficiencies.

Results The end result was a multi-year business plan and architecture that enabled

the agency to realize measurable results to mitigating risk to the insurance

fund and to achieving operational efficiencies.


Summary As lead architect on the project, steered the requirements development of

the third-party hosted solution. Architected the conversion plan of over 9000

servicing portfolio files from paper storage to online images; executed in

under 3 months’ duration. Crafted the re-engineering roadmap and adoption

plan which served as the blueprint to convert the GSE customer base to

electronic document delivery for all newly originated loans.

Results The end result was GSE and GSE’s clients are afforded faster and more cost

effective business processing through reduced cycle times. In addition, offsite

paper file storage costs reduced by 50%. Lastly, project became model for

Designed DMS Strategy and Implementation Plan at GSE

paper file storage costs reduced by 50%. Lastly, project became model for

working with this specific vendor that yielded two additional same-vendor

contracts with other business lines in the GSE.


Summary As lead architect, developed people, process, technology change model that

supported significant corporate-wide operations restructuring and served a

critical role in the retirement of the trading platform. Platform was retired

without disruption of any critical business systems across the fixed income

industry.

Results The end result was a re-usable change model that was adopted by other

business areas in the firm who were executing divestitures.

Wind-Down of Trading Platform


Summary As lead business architect, was asked to establish a new business line for the

bank that served as operational improvement “internal consultants.”

Developed business line key performance driver and indicator measures,

developed staff competency models, designed the organizational structure of

the business line.

Results Within the first 12 months of establishing the new function of 6 consultants, the following end results

were achieved:

•Designed new daily lending rate sheet distribution process that eliminated delays in dissemination to

branch offices. Branch offices were able to receive daily prices within minutes of the opening of the

New Business Line Start-up at Regional Retail Bank

branch offices. Branch offices were able to receive daily prices within minutes of the opening of the

capital markets.

•Designed mortgage post-closing QA process to ensure loan compliance with investor guidelines.

•Achieved 5% reduction in investor repurchases within first year.

•Designed new call center staffing model that reduced customer wait time, on average, by 40%, during

peak periods.

•Improved customer experience ratings from 2 to 4 on a 5 point scale, within 1 year, ahead of targets.

•Eliminated missed escrow payments through redesigned escrow tracking system, saving the firm

$1,000’s of dollars in missed payment penalties and interest.


Summary As lead consultant, crafted business case to demonstrate the return on

investment for bank’s adoption of electronic mortgage lending. Business case

included future-state business process and IT architecture as well as multiyear

implementation roadmap.

Results The end result was the bank was achieved demonstrated operating expense

savings within first 6 months of phase 1 implementation and 50% expense

savings by the end of phase 3/year 3 of implementation.

In addition, phase 1 work is underway to adapt the business process and IT

Authored Business Case for National Commercial Bank Adoption of

Electronic Mortgage Lending

In addition, phase 1 work is underway to adapt the business process and IT

architecture for the bank’s auto and consumer lending business lines, further

strengthening the bank’s return on investment.


Summary Business unit is experiencing exponential increase in processing volume due

to current industry focus on foreclosure alternatives. As lead architect on the

project, team was chartered with preparing business case for division EVP to

determine cost/benefit along several continuum.

1. Cost per settled loan.

2. Risk (financial, reputational, technology) of requiring mortgage servicers to

adopt a vendor settlement model.

3. IT models and costs associated with vendor ramp-up.

Authored Business Case to Determine Feasibility of Outsourcing GSE’s Single Family

Loan Modification Settlement Function

17

3. IT models and costs associated with vendor ramp-up.

Results EVP continues to weigh risk/reward for doing/not doing as business volumes

continue to ebb and flow.


Summary Served as Program Manager for Servicer and GSE implementation of IT and

business process changes to effect the federally mandated “Home Affordable

Foreclosure Alternatives” (HAFA) program.

Results Results in short sale and deed-in-lieu programs that will prevent thousands of

homeowners from losing their homes through foreclosure.

Program Manager for Home Affordable Foreclosure Alternatives


Summary Served as Program Manager for Servicer and GSE implementation of IT and

business process changes to effect the federally mandated “Home Affordable

Modification Program” (HAMP) program.

Results Results in mortgage modification solutions that will allow thousands of

homeowners to keep their homes.

Program Manager for Home Affordable Modification Program


Summary Served as Program Manager for the strategy, design and implementation of

liquidation damages policy for loans in GSE’s foreclosure inventory that are

forecast to complete foreclosure proceedings exceeding US State timeline

standards.

Results Results will be reduction in credit losses for the GSE and reduction of loans in

foreclosure inventory by Mortgage Servicers.

Program Manager for Reduction in State Foreclosure Timeline Standards


BIOGRAPHY

Distinctive Consulting Services, LLC was founded to help clients make sense of and manage

the constant changes the U.S. financial industry continues to experience.

Its founder and President, Sandra A. Manne, has over 20 years of experience as a change

agent, with most of that time devoted to the banking and mortgage verticals. Her primary

role has been that of internal consultant, giving her the combined insights of a financial

company insider and an external consultant.

Prior to founding this consulting practice, Sandra was a Senior Manager with Actualize

Consulting. During her tenure with Actualize, Sandra played a central role in expanding the

footprint of the Mortgage and Fixed Income practice group as well as creating the firm’s

Federal practice. She is also credited with developing the firm’s profitable Document Federal practice. She is also credited with developing the firm’s profitable Document

Management service offering.

Prior to Actualize, Sandra was a Sales Consultant with Fiserv Lending Solutions, which

pioneered the development of electronic mortgage processing technology and played a

key role in promoting industry-wide acceptance of e-mortgages.

Sandra has been a featured speaker at numerous national and regional Mortgage and

Retail Banking conferences and is a recognized expert on operational improvement

strategies for financial firms and financial functions. She holds a Master of Science degree

in Organizational Development/Knowledge Management from the George Mason

University- School of Public Policy, Fairfax, Virginia and is a member of the Mortgage

Bankers Association.


CONTACT INFORMATION

Sandra A. Manne, Founder and President

Distinctive Consulting Services

Phone: 703.626.1460

Email: Email:

[email protected]

http://distinctiveconsultingservices.com


DCS Capabilities, April 2011

Documents

deployed business applications

gse new business line

consulting professionals

impact analysis

deep industry knowledge

small regional banks

years of combined experience

comindustry expertise