The Brief

Client Profile Our client is a leading residential mortgage lender.
Company Size Large mortgage lender with over 80 offices across the US
Industry Domain Residential mortgage lending
Challenges Faced The client experienced extended loan processing times of 2-3 months, leading to backlogs. The situation worsened with a spike in work inflow due to falling interest rates. The challenges included dissatisfied loan officers and borrowers, higher occurrences of bad loans, additional efforts required for document movement, lack of resources to manage increased volumes, and poor processing quality, affecting productivity.
Project Objective The objective was to reduce loan processing times, eliminate backlogs, improve processing quality, and handle increased loan volumes efficiently.

The Solution

Backoffice Pro (BOP) took several steps to streamline the client's loan processing:

Strengthening the Workforce:
- Hired and trained resources three times faster than the client's in-house team.
- Assigned dedicated teams for each task, with a turnaround time of 24 hours.
Process Optimization:
- Divided complex processes into smaller, manageable tasks (e.g., Loan Processing was divided into 10+ tasks)
- Implemented daily completion and exception reports to measure productivity and turnaround times.
- Provided daily reports to track productivity and turnaround times.
Enhanced Quality Control:
- Assigned a QC team to audit a fixed percentage of daily production for each process.
- Introduced a separate team to handle problem items directly with borrowers, loan officers, and third parties.

BOP's intervention resulted in significant improvements for the client:

Improved Efficiency: Loan processing and closing times reduced by 30-50%.
Enhanced Quality: 25-30% less effort is required for loan closing, with documents staying current from acquisition to closure.
Cost Savings: Operational costs reduced by 40%, increasing profitability.
Streamlined Operations: Capability to process double the volume without additional infrastructure, managed by the offshore team.