October 11th, 2006 by satish
Reducing Closure Time in Mortgage Lending - a Customer Perspective
We recently worked with one of the leading retail secondary lenders. In a market that is having a downturn cycle this customer has had little effect. Competitors for this customer i believe are seeing 30% drop in the number of loans they are closing.
With about several 100s of sales agents and 100s of employees - whose jobs are intact (when you consider that across the country in this industry it is that much harder to keep people!) it was truly humbling to know that we had a part to play.
About two years back the CIO of this company was visionary and embarked on automating eligibility and pricing guidelines from various lenders within their system. Prior to this sales agents needed to be trained in each product, and then there could have been a lot of mistakes. In fact the existing system hardly captured a few simple products.
Why was this and what does a rules engine have to do with this?
1. It turns out that the primary critical issue was that capturing these loan products within the IT system was time consuming.
2. Intra day rate changes were happening and this would often take 2 days to reflect within the system.
3. Rate lock-ins were handled manually by sales agents.
Reducing the closure time by about 20% - just about the efficiency required to manage the downturn
1. The business rules paradigm using QuickRules solved this by allowing product guidelines to captured rapidly.
2. Within a short while most product guidelines were up and running. Intra day changes now take less than half a day and hence there is very little in terms of manual pricing - its accurate and reflects the current pricing.
3. Since the rules engine supports invoking business rules as of a previous date rate lockins are automated - no manual processing.
End Result- Number of leads handled per agent increased. Since the manual steps reduced, the wait period reduced as well. A lot of the decisioning including suggesting the best product to the customer is now done by the rules engine.
This entry was posted
on Wednesday, October 11th, 2006 at 4:55 am and is filed under Business Rules.
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October 11th, 2006 by satish
Reducing Closure Time in Mortgage Lending - a Customer Perspective
We recently worked with one of the leading retail secondary lenders. In a market that is having a downturn cycle this customer has had little effect. Competitors for this customer i believe are seeing 30% drop in the number of loans they are closing.
With about several 100s of sales agents and 100s of employees - whose jobs are intact (when you consider that across the country in this industry it is that much harder to keep people!) it was truly humbling to know that we had a part to play.
About two years back the CIO of this company was visionary and embarked on automating eligibility and pricing guidelines from various lenders within their system. Prior to this sales agents needed to be trained in each product, and then there could have been a lot of mistakes. In fact the existing system hardly captured a few simple products.
Why was this and what does a rules engine have to do with this?
1. It turns out that the primary critical issue was that capturing these loan products within the IT system was time consuming.
2. Intra day rate changes were happening and this would often take 2 days to reflect within the system.
3. Rate lock-ins were handled manually by sales agents.
Reducing the closure time by about 20% - just about the efficiency required to manage the downturn
1. The business rules paradigm using QuickRules solved this by allowing product guidelines to captured rapidly.
2. Within a short while most product guidelines were up and running. Intra day changes now take less than half a day and hence there is very little in terms of manual pricing - its accurate and reflects the current pricing.
3. Since the rules engine supports invoking business rules as of a previous date rate lockins are automated - no manual processing.
End Result- Number of leads handled per agent increased. Since the manual steps reduced, the wait period reduced as well. A lot of the decisioning including suggesting the best product to the customer is now done by the rules engine.
This entry was posted
on Wednesday, October 11th, 2006 at 4:55 am and is filed under Business Rules.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.