Outsourced process saves mortgage banker over $350,000 annually and reduces headcount by more than 75%.
THE CLIENT
This national mortgage banker originates, acquires, services, and sells mainly single-family mortgages for homebuyers throughout the U.S., operating through a network of independent mortgage brokers.
THE CHALLENGE
The mortgage company struggled with post funding costs rising faster than their loan growth rate. The tremendous volume of paper files forced the company to build out additional storage space, and the company’s existing staff, systems, and processes were unable to keep up the pace in post closing and collateral management, adding additional costs to hire and retain temporary staff.
The time required to identify, log, and file trailing documents identify the investor and ship collateral files to an investor or custodian was exceeding 90 days. Additionally, in post closing, the company was receiving over 100,000 pages of trailing documents per month that required copying, shipping, scanning, receiving and interfiling, resulting in copying costs exceeding $7,500 in and utilization of 12 FTEs.
THE RESULTS
By outsourcing identification of loans, lookup of investors, and shipping of collateral documents, SOURCECORP eliminated the backlog of collateral files and shortened delivery time from 90 days to under seven. The client also migrated to image-based system, shipping trailing documents to SOURCECORP where they are imaged, doc typed and shredded. By partnering with SOURCECORP, this client eliminated a cumbersome paper-intensive process, saving over $350,000 annually and reducing FTE headcount by more than 75%.