The Client
A Leading US Bank originating residential mortgages
Challenge
- Delay in underwriting decisions due to multiple UW touches
- Loan reschedules resulted in customer dissatisfaction
- Impact on Rate lock timelines
- Difficulty in meeting Turn time on ‘’Rush Orders’’ and prioritized loans
- Delay in underwriting decision due to high volumes (up to 150% of capacity)
Solution & Execution
- Process Re-engineering done to reduce multiple underwriter touches
- Only decision ready file were staged for UW’s final review
- Review/Fulfil documentation requirements as per Regulators, Investor & Bank guidelines and raising additional conditions to address nuances, if any
- Submission of Income and Asset worksheet, along with UW cover sheet with recommended decision to onshore underwriter
Value Delivered
- Improved UW efficiency by 2x
- From 3.5 to 1.7 per loan – a 50% reduction within 3 weeks of pilot
- Increase in approval percentage from 68% to 89.2%
- Increase in single touch decision from 5% to 20%
- Reduction in Loan suspends from 36% to 26%
- Underwriting decision increased from 10% to 40% with 1.5 touches
- Application to approve reduced from 36 to 22 days
