© 2012 Fiserv, Inc. or its affiliates.
Loan Completion Process
Jay Coomes, FiservJoe Dahleen, SME
© 2012 Fiserv, Inc. or its affiliates.
Considerations:
• Unit Throughput
• Production volume fluctuations
• Origination Regulation
• Servicing Regulation
Established Loan Processing Domains
Loan Origination
System
Regulatory Compliance
Solution
Loan Servicing System
© 2012 Fiserv, Inc. or its affiliates.
Loan Completion: Operational Goals
• Ensure compliance
• Reduce risk
• Improve processor efficiencies
• Increase customer satisfaction
• Decrease Cost
• Ensure Revenue
Loan Origination
Regulatory Compliance
Loan Servicing
CompletionProcess
© 2012 Fiserv, Inc. or its affiliates.
Loan Completion Process: Tasks
Loan Origination
Regulatory Compliance
Loan Servicing
CompletionProcess
• Pre-Close Audit• Post-Close Audit•Trailing Documentation• Document Logging and Tracking• Post Close QC• Recurring Commercial Audits• Confirmation of doc receipt• Loan Audit Delivery• Loan Insurer Delivery• Loan Investor Delivery• Pool Quality Review
. . .
© 2012 Fiserv, Inc. or its affiliates.
Today’s Results
© 2012 Fiserv, Inc. or its affiliates.
• Poor processing and documentation quality
• Lack of regulatory compliance
• Low customer satisfaction
Current Loan Completion Process: Results
Loan Origination
Regulatory Compliance
Loan Servicing
© 2012 Fiserv, Inc. or its affiliates.
• Non-standard, Disparate solutions
• Home grown tools:
• Access Databases• Excel Spreadsheets• PDF Documents
• Some specific 3rd party solutions
All are used to accomplish the completion of loan processing!
With expected results!
Loan Completion Process: Environment
Loan Origination
Regulatory Compliance
Loan Servicing
© 2012 Fiserv, Inc. or its affiliates.
Standardize Loan Completion Process
Standardization Steps:
• Define the overall process
• Identify task within each step of the process
• Automate as much as possible
• Provide for flexibility of an ever changing regulatory landscape
Loan Origination
Regulatory Compliance
Loan Servicing
CompletionProcess
© 2012 Fiserv, Inc. or its affiliates.
Loan Completion Process Automation
LOS Integration & Doc Scanning
Capture
Verification/
Confirmation
Confirm
PackageDelivery
Deliver
Tracking Doc
Location
Track
QualityReviews
Review
Loan Completion Operational Process
© 2012 Fiserv, Inc. or its affiliates.
Automated Loan Completion Process
Loan Originatio
n Syste
m
Regulatory Compliance Solution
Loan Servicing
System
Yields a successful, trackable and complete transfer of the
loan to its Ultimate Destination
© 2012 Fiserv, Inc. or its affiliates.
© 2012 Fiserv, Inc. or its affiliates.
• Improve loan quality to loan level deficiency and detection
• Close wasteful gaps in processing and fulfillment
• Increase warehouse velocity – while avoiding delay and risk
• Proactive approach to re-purchase risk• Increase performance by leveraging technology
thus reducing FTE• Reduce cost during the lifecycle of the loan
© 2012 Fiserv, Inc. or its affiliates.
LoanComplete
LoanServicing
LoanOrigination
RegulatoryCompliance
• Provides a life of loan solution• Integrates with Fiserv’s loan origination, servicing solutions• Executes standardized workflow processing at each phase• Includes data and document content management • Provides data quality stage gates, audit checks and data element analytics
Fiserv’s LoanComplete Solution
© 2012 Fiserv, Inc. or its affiliates.
Joe Dahleen [guest speaker]Mortgage Technology Consultant and Chief Strategy Officer [whitepaper on Loan Completion Process]
© 2012 Fiserv, Inc. or its affiliates.
Another View at the Loan Completion Space
© 2012 Fiserv, Inc. or its affiliates.
Regulatory/Compliance
Loan Origination
Quality Control
Loan Servicing
Secondary Market Sale
Life of Loan
Loan Completion Operational Functions
© 2012 Fiserv, Inc. or its affiliates. 17
Regulatory/Compliance
Loan Origination
Quality Control
Loan Servicing
Secondary Market Sale
Life of Loan
Loan Completion: Regulatory/Compliance
• State Licensing Management
• Lawsuit Case Management
• CFPB Complaint Processing
• CFPB Self Examination – Default Loans • CFPB Self Examination – Core Servicing
LoanComplete: Workflows are designed to accelerate business processes, both content and case-based, while reducing costs associated with risk management and regulatory compliance mandates
© 2012 Fiserv, Inc. or its affiliates.
Compliant Processing – Highest priority outtakes from CFPB
© 2012 Fiserv, Inc. or its affiliates. 19
Regulatory/Compliance
Loan Origination
Quality Control
Loan Servicing
Secondary Market Sale
Life of Loan
Loan Completion: Loan Origination
• Loan Origination Document Routing
• Loan Closing Document Routing
• Customer Service Case Management
LoanComplete: Workflows have been designed to track and react , maximizing the consumer experience and minimizing the processing timeline.
© 2012 Fiserv, Inc. or its affiliates.
Regulatory/Compliance
Loan Origination
Quality Control
Loan Servicing
Secondary Market Sale
Life of Loan
Loan Completion: Quality Control
• Investor Delivery
• Document Readiness Review
• Loan Sale Due Diligence Processes
• Pool Allocation Management
LoanComplete: Designed to support requirements for providing deep loan level data, remotely viewable documents, standardized packaging and eDelivery.
© 2012 Fiserv, Inc. or its affiliates.
Regulatory/Compliance
Loan Origination
Quality Control
Loan Servicing
Secondary Market Sale
Life of Loan
Loan Completion: Loan Servicing
• Loan Servicing Acquisition/Sale Review
• Early Default Review
• PreForeclosure Review
• Payoff Review
• Loan Modification Document Routing
LoanComplete: Workflows are designed to improve the loan servicing review processes by leading the reviewer thru configurable workflows and routing exceptions for action, reducing risk and costs.
© 2012 Fiserv, Inc. or its affiliates.
New and Expanded Operational Procedures from CFPB
Examination on consumer-facing aspects
• Default servicing and foreclosure – including collections, bankruptcy, loss mitigation and foreclosures
• Core servicing – including servicing transfers, payment processing, escrow accounts,
• Credit reporting and information sharing and privacy
Focus is on UDAAP compliance
• Timely, clear and accurate disclosures to borrowers,
• Proper application of fees and payments, including those associated with foreclosure
• Consistent and fair application of loss mitigation and foreclosures related activities, especially where there is judgment applied that could lead to disparate treatment
© 2012 Fiserv, Inc. or its affiliates.
Regulatory/Compliance
Loan Origination
Quality Control
Loan Servicing
Secondary Market Sale
Life of Loan
Loan Completion: Secondary Market
• Agency Prefunding QC Audit
• Agency Post Closing QC Audit
• FNMA/FHLMC Post Close QC – Legal Docs• GNMA Post Closing Review
• Pre Loan boarding data validation
LoanComplete: Workflows are designed to ensure the quality of each loan meets standards and requirements established by investor, lender and loan servicer, reducing risks and improving processor effectiveness.
© 2012 Fiserv, Inc. or its affiliates.
The Hiring Strain
Problem• Experienced Employee Talent is
in high demand• Hiring untrained employees
shift pressure to training • Money and Time miss aligned
in staff assigned• Capacity planning on Human
capital opens gaps
Solution• Leverage technology to lower
operating cost• Increased efficiency through
reduction in manual labor• Minimized time delays with
intelligent pre-defined workflow• Simplify audit review with
movement of data and documents
© 2012 Fiserv, Inc. or its affiliates.
Loan CompletionThe New Lending Application Domain
Features – Joe Slide • • • • • • • •
© 2012 Fiserv, Inc. or its affiliates.
What’s Next ?
• Stop by the Solution Showcase to see more about the Fiserv LoanComplete family of Products
• Ask you Fiserv Representative for more information • Read Joe’s Whitepaper defining the Loan Completion Space• Attend the PwC session regarding the CFPB and learn how the
LoanComplete technology can apply • Stay tuned for more on the Loan Completion Space and what
Fiserv is
26
Connect With Us
000-000-0000
Jay Coomes
206-499-4888
Joe Dahleen