Sagent

Transcription:
Transcripts are generated using a combination of speech recognition software and human transcribers, and may contain errors. Please check the corresponding audio for the authoritative record.

Hunter Stair (00:08):
Well, thank you for that introduction and thank you for having us out for the digital mortgage conference this week. Quick question, raise your hand if you're in the crowd and you are from the East Coast. Okay. Wow, a lot. Keep your hands up. How many of you drove out here to San Diego for the conference this week? I saw one—you did? No. If you did drive out here and didn't stop a lot to sightsee, that'd probably take you about four days to get here.

Jennifer Johnson (00:38):
You know what else you can do in four days, Hunter? That home improvement project you've been putting off for the last four years.

Hunter Stair (00:44):
Well, I could do that, but I'm much more likely to spend four days sitting on the couch binge-watching my favorite TV show. Let's say Game of Thrones, and trust me, I did the math. There's like 85 hours of Game of Thrones seasons out there, so there'd be quite a lot. Another thing that takes four days in the mortgage servicing industry is updating core loan data in the system of record at the end of a loan modification. This is because current systems rely on nightly batch processes occurring over many days, sometimes three, four, even five days. That's what we're going to talk about today and how we solve that. My name's Hunter, this is Jennifer Johnson. We're from Sagent, and our Dara platform is built on real-time data and processing, and we're excited to show you what we're doing in this space today. But first, let's talk about why this is important from a market landscape perspective.

Jennifer Johnson (01:43):
Yeah, so let's take a look at the market for a second. Unemployment rates are on the rise, so it's no surprise that default and mortgage loans are increasing. Default servicing is the most expensive part of the servicing process, and that includes loss mitigation. So let's take a look at the loan modification journey a homeowner takes when they're experiencing a hardship and how we've streamlined that process.

Hunter Stair (02:09):
Loss mitigation and loan modifications specifically are a great tool that servicers have. It allows them to help their borrowers who are struggling to make their monthly payments. At the end of a loan modification, borrowers have a cheaper payment allowing them to stay in their house. The process is more of a journey. It starts with a customer working through an application, submitting documentation, and then at the end, there's a loan modification agreement that's signed and then countersigned by the borrower and the co-borrower. At the very end of the process today, it takes on average four days to update the core system of record. In those four days, the borrower is extremely anxious. They just want confirmation that this is done. They want to see their new loan payment in the portal or in any other documentation that they may have. What we're doing is we're shrinking that four days down into four minutes. Let's show you how.

Jennifer Johnson (03:08):
Jumping right into the demo. This is the homeowner portal that you see on the screen right here. I'm the borrower. I'm logged in, and you can see that my loan is active in loss mitigation. We're at the tail end of the loss mitigation process here, so I've been working directly through the application and getting notifications from the servicer. You can see they've been notified that we're in the process of updating the servicing system to reflect the new loan terms. I see my pre and post loan modification terms, and now it's just a waiting game as Hunter said, which usually takes four days. But I'm going to jump over to our servicing system and show you how it takes a matter of minutes. This is Dara Core, our system. You can see this loan is active in loss mitigation. The homeowner has been approved for a flex modification. They also see here in the system all the same terms that the homeowner has seen. Now I could jump over here and let me jump down.

(04:15):
Actually right here. I could select "finalized modification" and this would actually update all of the terms instantaneously. But for the purpose of this demo, I'm going to walk you through how I can manually adjust these terms because loan modification might not be the only use case you need to make adjustments to the loan. I have this set up. You can see I'm adjusting the principal balance for a loan modification. We're capitalizing all of the delinquent interest as well as any past due fees and costs. In this case, I have a corporate advance balance that I'm going to wipe out. If I had any other items that I needed to remove, like late charges or other fees and costs, I can also adjust those here as well. I'm going to move forward and review, as is sometimes the case when you're actually doing a demo.

(05:10):
So let me come over here to the loan attributes and I'm going to edit this for a modification. When I do, you can see that the principal balance has been adjusted, but I need to go ahead and quickly update the terms to match what the final terms of the modification are going to be. My maturity date has been extended out to 2031 if I remember correctly, and my first due date is going to be 2025. The principal balance has been adjusted. I'm going to go ahead and adjust the P&I payment, and I have to go back over here really quick to see what that is. Then lastly, the T&I payment amount, which is 667, and now this is ready to be finalized. All of the loan attributes have been edited and modified. I'm going to go back to my loss mitigation workstation where I'm going to finalize the modification for the Digmo demo.

(06:20):
I'm going to go ahead and just close out the workstation because we are now complete. As you saw, that did not take four days. We did not have to rely on batch processing to do this process. As a homeowner now, I've received a notification letting me know that all of my modification terms have been complete and the system's been updated. When I log out and log back in, I am now going to see my updated monthly mortgage payment. I see that my loan is current and that I'm due for October 1st. When I continue to the loan, I can see the adjusted principal balance and all of the new loan terms, and I'm officially a happy camper.

Hunter Stair (07:04):
As you can see, we just took a four-day process and shrunk it into basically three or four minutes. That's just one example of how we're utilizing real-time data and processes in the new Dara platform. There're other examples such as payment reversals, recasts, and lots of other things. But we're helping our servicers manage their cost while staying compliant and also focusing heavily on the consumer. Next time you drive cross-country or sit down to binge-watch your favorite TV show, remember Jennifer and I, and remember what Sagent is doing to change the mortgage servicing industry. Thank you.

Jennifer Johnson (07:42):
Thank you.