New Workflow Tool from AP3 Solutions Aims to Trim Default Timeframes

Donald Pettingill, president of AP3 Solutions LLC, is a man on a mission - to evangelize mortgage industry adoption of Business Process Management, the advanced workflow technology that some say is essential to realization of electronic mortgage transactions.

BPM is an approach to workflow with two phases: business process modeling, to simulate the various scenarios where automation will improve the process and business process automation, to route tasks, documents and data to the appropriate individual or system.

As part of his outreach effort, he will be offering the 2002 Workflow Management Coalition Handbook. He says those who didn't get a chance to hear his 'sermon' at the recent Mortgage Bankers Association technology conference should log on to www.wfmc.org.

Automating mortgage origination or foreclosure, for instance, requires that the workflow link various parties. The WfMC website shows how Version 1.1 of its interoperability standard employs XML to automate interactions between workflow engines.

Prior to MBA Tech, Mr. Pettingill went to the MBA servicing conference in New Orleans to unveil his company's newest offering, MasterView, a rules-based workflow engine that automates routine manual tasks associated with processing foreclosure, bankruptcy, title and eviction cases "in a fraction of the usual timeframes."

In New Orleans, AP3 (www.ap3solutions.com) debuted its MasterView Default Manager as "the first strategic performance and process improvement tool designed to optimize and streamline the default management process for legal professionals serving the mortgage industry.

"You have dependencies on a lot of outside entities in default management," he said, "so we want to introduce people to what we are doing to create that link for title, skip trace and so on in one seamless entity, one seamless application.

"MasterView Default will integrate right into Ocwen's REALTrans, for example, rather than just trying to status you. It's the difference between monitoring and controlling. We are going to give users control. We can order from the next title company if the first one doesn't meet deadlines. All those triggers are highly automated with our rules-based engine."

Another control users have with the product is tweaking the business rules it uses, he said. "The rules are at the business level. I do not need an IT person to change a rule, a business person can do it."

Creating some transparency among the law firms involved in default management allows managing them like other service providers, he said. "We have been talking to Ocwen because they have a high dependency on the law firms, but right now they have no capability to manage those relationships. What they have with us is complete case file visibility.

"The mystery always has been that we throw the case file over the fence into some other state a thousand miles away where it disappears from the lender's control. I think the good news is that when it comes to default the highest dependence has been on the law firm. No one has ever had control or true visibility into a law firm's operations. That now goes away."

No one manages the work at the law office level, he said. "They don't manage the work habits and business processes of the law firm. Today 50% of the time is spent just statusing the source. That creates a tremendous challenge for a law office to grow. The good thing about attorneys is that they are capitalists too. If they can process faster, they will."

Once the mortgage servicing industry comprehends the value of BPM, adoption may prove mandatory. He suggested, "With default management the timeframe is everything. He who can manage the timeframe wins."

While the product is new, he said it is "fully developed and fully ready to be installed in law firms. The first customer for this BPM product for law offices is LOGS (Law Offices of Gerry Shapiro). For LOGS we automated and HTML-enabled 18,000 different documents for 33 states."

The system is detailed enough that it takes into account rules and requirements by state, county - and individual judge - that formerly resided in the brains of individual employees.

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