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CLIENT CASE STUDY


Large correspondent and wholesale lender: Improved risk analysis

Evaluating risks to ensure more well-grounded and faster loan decisions.

Overview

This lender sought to aggressively grow their third party originations by documenting and standardizing processes to ensure high quality, and by ramping up capacity quickly. Accenture established the role of auditor and underwriter to evaluate the layered risks inherent in a loan and to support the lender’s loan-level decision. With Accenture’s help, the lender has significantly accelerated loan processing productivity, reduced decision times and made measurable cost improvements.

Solution

Accenture established the role of auditor and underwriter for loans originating through correspondent and wholesale lending channels. The goal was to evaluate the combination of layered risks inherent in the loan through a compliance review and a credit risk evaluation of liabilities, income, collateral appraisal and assets. This analysis enables the lender to make a more well-grounded decision about the loan or, if necessary, Accenture to make the lending decision.

The engagement began offshore with 26 FTE people reviewing more than 2,000 files per month within 90 days and grew to more than 4,000 files per month in 180 days. First year achievements have led to an expanded staff of over 200.

Results

The client has experienced significant success from the engagement. Concrete measurements include:

  • Increased underwriting decision productivity to more than 4.5 files per day.

  • Reduced loan decisions awaiting adequate documentation from 64 percent to 19 percent.

  • Reduced loan condition overstipulation from 25 percent to 6 percent.

  • Increased funding over 75 percent.

  • Increased cost savings of 50 percent through offshore rates, productivity gains and scheduling improvements.

  • Reduced document indexing errors from 15 percent to 2 percent.

  • Maintained quality standards above 99.5 percent.

  • Reduced channels’ underwriting time to 24-hour decisions and 8.5-day funding—25 percent of previous duration—propelling the client into a strong position among industry leaders.