AUG 20, 2012

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Mortgage Bytes

Technology to Get it Right the First Time

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Given the pace and complexity of changes impacting the mortgage industry, getting it right the first time can be quite a challenge. When a loan is not properly documented, packaged, or reviewed, it can result in a suspended loan, which is inefficient and costly to all parties involved.

Wells Fargo Funding estimates a suspended loan costs as much as 35% more than a complete and accurate loan package. Analyzing common suspense issues and trends, identifying root causes, and developing remedies, are just a few of the ways Wells Fargo Funding helps drive down these costs.

Paired with a discipline of sharing best practices through multiple communication vehicles and a focus on getting it right the first time, this analysis further drives an efficient operational excellence model—one that leads to quicker purchases and reduced turn times, less handling by post funding operations and reduced risk of an incurable flaw or a repurchase.

Achieving operational excellence requires both processes and technology to ensure resources are applied in a way which drives maximum performance. Some companies are missing out on opportunities that go above their immediate internal efficiencies.

For example, it’s estimated that only 15% of loans are originated with electronic disclosures and/or electronic signatures—however, lenders previously implementing an electronic signing process are experiencing significant cost savings from this technology, as well as reaping numerous regulatory and compliance benefits. And these same lenders are now expanding this technology to include employee-signed documents such as the 1008, VVOE and others in the hope of achieving similar results.

How many companies are using data solutions to drive operational efficiencies? How many are selling their loans into the secondary market (non-GSEs) using the ULDD data specifications?

Historically, the GSEs have supported the use of electronic forms and data. And, it appears we can expect additional support in the future. At the MBA Mortgage Technology Conference in April we heard about plans for further regulating the mortgage industry. We also heard about expanded use of e-business options for other mortgage documents like e-appraisals. We might be seeing some of that now with the recent borrower disclosure proposal under the Dodd-Frank rules. 

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