Flatworld Solutions Streamlined Business Processes to Help a National Lender Reduce TAT by 60%

The Client

One of our oldest clients is a big-ticket national lender headquartered in South Carolina. With over 700 loan officers serving in all 50 States and an employee size of 4.5K+, the client focuses on providing the best loan programs to support communities. The client funded over 30B in mortgages in 2021. Our relationship with the client dates to 2011 when they used to do less than 1B for the whole year.

The Requirement

The client wanted to design a high-touch workflow that would allow loan officers and borrowers to close a transaction within ten business days, whereas the industry average at that time was 40+ days.

The Challenges

Since they were a company focused on serving the community, it needed to look for ways to optimize costs and process efficiencies. The client also had a rapid growth plan wherein their volume would increase substantially each year. They needed a continuous supply of manpower to increase operational capacity. Also, the client lacked proper documentation on task segregation and well-defined individual processes and their scope.

Our Solution

After a satisfactory pilot run, we got down to the Herculean task of re-engineering the client's organization-wide workflow to achieve the 10-day closing goal. We assigned SMEs to perform a detailed study of their existing systems and processes and then suggest an out-and-out redesign. We rallied a sizeable team of mortgage experts so that the client has a continuous supply of trained resources at their beck and call. We ensured that scaling up operations was never a concern for the leadership team.

Our Strategic Approach

The idea was to provide the client with robust back-office support to ensure that we did all the heavy lifting while the client’s internal team focused on providing great communication to borrowers and loan officers. We started with a transition of easy-to-lift-and-shift processes and then expanded into more complex tasks. The strategy was to bifurcate the low-mid-high-risk tasks and assign them in phases to Flatworld Solutions. It gave us enough time to capture the knowledge base and ramp up quicker than anticipated.

The Protect Scope and The Support Metrics

1. Mortgage Operations Support 

   • Disclosures Services  - We reviewed credit reports and searched for Fraud/SSN & MLA warnings. We looked for delinquencies or bankruptcies reported during the last one or two financial years. We calculated the DTI within the consumer lending system. Our experts verified if the loan provided was within the approved range in the consumer lending system or based on the DTI available compared to the monthly payments. They reviewed the terms and conditions in lease agreements to ensure compliance.
   • Pre-processing/Loan Setup- We reviewed purchase contracts and other documents. The tasks also included ordering, following up, and completing VOE, Appraisal, Title, HOI, 4506T, and other third-party documents. The team included 100+ trained resources.
   • Underwriting Support- We provided the client with 70+ experts to review collateral and income.
   • Closing Support - A team of 70+ resources helped the client gather fees from settlement companies and prepare Initial Closing Disclosures (ICDs). They would send the ICDs to companies and work on the Change of Circumstances (COC) as needed.
   • Post-Closing Services- 70+ experts deftly delivered post-closing audits, loan delivery, TRID Review, and trailing document management.

2. Technology & Automation Support

   • Technology Support- We built data warehouses for reporting and other tools like borrower-facing portals.
   • LQI Automation- We automated the entire process of credit monitoring from application to loan closing.
   • Servicing Doc Delivery Automation- The client's sub-servicer wanted documents indexed and packaged in a particular order. However, the LOS was not able to generate the same. We leveraged M-suite to automate the process and helped identify cases of missing mandatory documents.

3. Finance, Accounting & Payroll Management

   We deployed a team for bookkeeping, managing AR/AP, and handling payroll calculations including incentives. Overall, we have a team of 450+ people supporting this client across the board, and we continue to expand our relationship.  

Business Impacts We Delivered

• 40% less operational cost
• 40% reduction in operational cost for every outsourced employee
• 60% improvement in closing time
• A 10-day closing period for 80% of loans
• 25% improvement in customer satisfaction
• 100% operational scalability year on year
• 1B to 30B in annual funding within 10 years
• Among the top 10 retail independent mortgage bankers in the country

The Final Outcome

There were several years when the client grew by over 100%. Our partnership ensured the easy availability of trained and experienced resources. With our support, scaling up operations was never a concern for the leadership team. The engagement that started with 4-5 staff expanded to a colossal team of 450+ FTEs. At present, the client is known for their 10-day closing promise and they continue to capture market share.

Outsource Mortgage Support Services to Flatworld Solutions

We are a premier mortgage services company with a sterling global presence and rich domain expertise. Our team of 1000+ qualified mortgage professionals restructure costs and aids your uphill battle when it comes to navigating the regulatory landscape. Ensure smoother compliance and streamlined risk mitigation with our home appraisal services. We also provide a range of other support services including mortgage title services, underwriting, closing, post-closing, and more. For dedicated end-to-end back-office mortgage support, reach out to us immediately!