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Th e M Rep o RT | 47 O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t Department ORIGINATION the latest lenders increasingly embracing automated mortgage Workflows Business analyst shares steps for automating your processes. CONNECTICUT // Amid the push for more transparency and rising pressure to contain costs in mortgage originations, automated workflows are be- coming a necessity for lenders. Adapting automation technology on a timely basis to help lenders weather increasing regulatory demands, meet mandates, and stay ahead of the competition relies on a solid workflow man- agement foundation. From last year's Quality Mortgage rule to the upcoming Integrated Disclosures rule, the wave of regulatory reform has lenders continually scrambling to adjust business processes and technology systems to stay afloat. This alone can cut into quality and loan profits. Freddie Mac's March 2015 forecast indicates that mortgage volume will increase for the first time since 2012 but shrink in 2016, further challenging profit margins. Collaborative meth- ods to process information and transactions at a massive scale are key to overcoming varying staff needs and remaining competi- tive throughout fluctuating loan production cycles. Automated workflow technology can help, but only if the right processes are implemented to begin with. Nearly three out of four lenders are implementing new technol- ogy, with workflow capabilities being among the most sought-after features, according to Xerox's 2014 Path to Paperless Survey. To en- sure IT investments are optimized, now is a good time for lenders to establish or revisit their workflow management game plan. Five Steps to Automating Your Business 1. Know your numbers and goals. Before investing in new technology or costly reconfigura- tions, take time to analyze the health of your team's perfor- mance. Sales or operations teams may recognize imperfect pro- cesses, but hard data such as key performance indicators (KPIs) can help determine whether your workflow has a cold or a terminal illness. KPIs can uncover where auto- mated workflows could be useful or improved within the origina- tion process. Moreover, the data can serve to identify the metrics necessary to establish desired, yet realistic, goals and track progress in both performance and profit- ability over time. 2. Create an automated workflow implementation team. Once metrics and goals are delineated, identify a S.T.A.C.K.E.D. team that can successfully guide the implementation of new and automated work processes. This means selecting members who demonstrate a deep understanding of the following attributes: » » Service:»Members should un- derstand how the project can impact the service levels to your customers. » » Teamwork:»Members should work well with others. » » Accountability:»Choose a project manager to drive the project to completion and supporting members that accept account- ability for the project. » » Communication: Members should be able to express the needs of their role. » » Knowledgeable:»Members should have a high-level understanding of the overall mortgage process. » » Expertise: Select subject-matter experts for each process that is being evaluated. » » Diversity: Choose a diverse team, representing the full range of the mortgage cycle, to allow a broader perspective. 3.Identify your business require- ments. Gather your STACKED team to determine which tech- nological functionalities will help meet overall business requirements and mortgage workflow goals. 4. Evaluate your options for auto- mated workflow technology. When's the last time you took time to analyze vendor updates to the technology you have in place? Workflow automation features are typically embedded in a lend- er's origination platform, within a feature of their e-document platform or driven by a third- party workflow engine. If you take a moment to understand your existing vendors' additional functionality, you may find a quicker and more profitable way to improve your processes right at your fingertips. Asking your existing and potential technology providers for a demonstration of their latest system's functionalities can also help uncover which technology needs to be replaced versus reconfigured. Ensure your STACKED team participates during the demonstrations to facilitate decision-making. 5. Configure a flexible, collaborative mortgage workflow. Once you've selected your workflow technol- ogy, engage your STACKED team and your vendor's delegat- ed staff to design an automated mortgage workflow that is flexible and collaborative. While each organization has a unique process driven by data, docu- ments, or people to determine how mortgage applications should progress through their systems, the key is to incorpo- rate parallel processing capabili- ties and avoid seemingly logical, sequential parameters that result in a single-threaded process. Workflow configurations should not mirror a loan folder going from desk to desk to complete processes in a sequential order. From the point of applica- tion through investor delivery and loan servicing, automated processes that enable various departments to concurrently ac- cess and collaborate on loans are pivotal to meeting the needs of the customer, internal teams, and the company on a timelier basis. By»Chris»Lohman,»senior»business» analyst»at»Norwalk,»Connecticut-based» Xerox»Mortgage»Services. ORIGINATION local eDition