Mortgage Origination Solution for Top US Lender

A top US lender was faced with unprecedented changing market conditions, highly manual and disparate origination processes, and a limited ability to validate compliance. These challenges resulted in declining customer satisfaction and a portfolio of defect loans. The lender selected Accenture to design, develop and implement a new mortgage origination solution enabled by imaging and workflow, a set of automated quality controls, and a centralized fulfillment workforce.  Accenture helped the bank define a future-state vision, roadmap and business case for a customer focused program projected to reduce operational risk while achieving a $120 million+ annual run-rate benefit once fully deployed.  Achieving the future state will enable the bank to balance the risk of non-compliant loans with the ability to lend efficiently to qualified borrowers.

The bank recognized a number of crucial problems stemming from the way it handled mortgage origination. The existing processes:

• Impeded the sales force, as loan originators were spending too much time “babysitting the process” rather than selling.

• Lacked flexibility and adaptability, with about 600 bulletins implemented manually and limited ability to confirm compliance.

• Hindered compliance, resulting in increased regulatory scrutiny from the US Federal Reserve, which deemed their processes unsatisfactory.

• Contributed to a decline in the bank’s JD Power and Associates overall client satisfaction rating.

• Lacked the appropriate controls, were not standardized and were not coupled with standardized roles and responsibilities to ensure consistency.

The bank needed to develop a new loan origination and fulfillment process to overcome these problems and deliver fast, predictable results at a lower cost.

With its deeply skilled mortgage specialists bringing delivery expertise and industry experience, Accenture helped the bank define a future-state vision, roadmap and business case for its mortgage origination process. Accenture’s solution would be implemented in three waves intended to:

• Industrialize quality by standardizing processes, defining roles and winning over key stakeholders.

• Industrialize decision-making by shortening and automating processes, and improving application and underwriting efficiency.

• Differentiate the client experience by enhancing client solution modeling and providing client self-serve options.

Accenture created a roadmap to guide the bank in developing a new customer-centric mortgage origination process projected to generate savings of between $114 million and $124 million per year, and deliver a net present value of $165 million and an internal rate of return of 90 percent. The bank is now well-positioned to create a process that is:

• Reliable, reducing broken loans and maintaining investor compliance.

• Friendly,  resulting in a greatly enhanced client experience and a performance-enabling atmosphere for employees.

• Efficient, with reduced costs, improved speed and clear accountabilities.

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