the first mile - single family loan document processing in 37 minutes
TRANSCRIPT
The First Mile –
Single Family Loan Document
Processing in 37 Minutes
Presented By:
Charles Weidman
President & CEO
Buddha Logic
Brian Mueller
Manager, Integrated Records Management (IRM)
Colorado Housing and Finance Authority
The Challenge“The Black Box”
Starting several years ago, CHFA converted to image loan files and secure
electronic delivery
Implementing technology dropped processing time from several days to just
eight hours
Loan document processing consists of:
350 – 500 page single family loan application
Classifying each document correctly
Assigning applicable keywords
Storing the entirety in CHFA’s image system
Loans are then available for review
This is referred to as the “first mile” of loan delivery and validation process
Increased improvements reduced processing times by four hours
Lender frustrations became apparent
No visibility into the status of their submitted documents made the
experience seem to be like sending documents into a “black box”
CHFA’s Solution
IRM and IT partner to create a document delivery portal
• Allows lenders to upload their documents and receive immediate
status verification as to the receipt and validity of loan documents
Supplemental inclusion of a software tool call Kofax
Transformation Modules (KTM)
• Identifies loan documents automatically
• Increased processing speed at classification
• Tools still requires human review to ensure accuracy of document
classification and separation
• A critical function of IRM
• Working with Kofax we achieved new understanding of processing
time to validate the systems classification and separation
CHFA’s Solution
What ‘s behind the scenes
Foundation
• IRM’s work to build and document CHFA’s document taxonomy
• IRM’s work to review and document Processes and SOPs
• IRM’s continuous improvement approach
Education
• Internal: Intensive staff involvement in understanding and learning content
• Walk a Mile training with business unit to gain expertise
• External: Engagement early on with our partners to standardize naming
conventions and ease of use in delivery process
CHFA’s Solution
We identified lag time of more than 15 minutes between the document review
and validation touchpoints
• Established a Key Performance Indicator target of getting document
batches from review to validation in three minutes and five seconds or
less, on average
• CHFA has seen a marked improvement in loan file processing
Using analytics to create insight has created a culture shift in IRM
• We can pull data on our process and see how long each step takes
• Discover where delays occur
• Increased awareness of performance
• Motivate the entire team to step up their game
• Deliver better service and to do it faster and more accurately
Achieved Measurable Improvement
Some measurable improvements include:
• Achieved a 63-minute single family loan file processing time in 2015
• Improved to an average 37-minute single family loan file processing time in
2016
• Handled 42 percent increase in loan file volume without increased
headcount in 2015
• Achieved a Ginnie Mae document accuracy rate of 99.87 percent (error
rate of only 0.13 percent). Previously, error rate was 5 percent annually
• Won “First Mile Solution of the Year” Award from Lexmark (Kofax) in 2016,
beating out international and Fortune 500 Company competition
Achieved Measurable Improvement
What ‘s behind the scenes
• A KTM Model that implements chfa’s document taxonomy
• A commitment to provide monthly care and feeding of the Model
• Removing out dated content
• Identifying and training new content
• IRM’s is self-monitoring, they look for process improvements
• Standard File Naming Conventions
• Straight-Through Documents
Effective Use of Resources
The goal of an nonprofit is to do more with less, and CHFA is no
different
• The “First Mile” improvements have allowed the IRM team to
handle a 42 percent increase in loan file volume without increased
head count
• Since IRM is now responsible for document classification, CHFA’s
Home Finance team is able to evaluate more loans in less time
• Faster decisions to either approve or suspend the loan
Benefits vs. Costs
CHFA’s greatest benefit has been the ability to increase loan
production by almost 50 percent without adding headcount
• Additional cost savings include lender savings from shipping, reduced
physical records storage and destruction costs, and paper costs
• This equates to a combined annual savings of approximately $1 million
Replicable
HFAs are document-intensive organizations
• To achieve operational efficiency, transitioning to imaged
documents is a must
• To achieve the next level of speed and agility, an HFA would
need to consider investing in a document classification engine
• There is upfront and on-going cost to this technology, it has
resulted in overall savings
• It is key to incredible operational efficiency gains
Maintainable
ECM is not a ‘Project’, it is a Program
• Budget
• chfa provides an annual budget to maintain and grow their ECM program
• Support
• IRM is the champion of their ECM program providing:
• Education and Training for internal and external customers
• Documentation on how to process, access and store content
• Innovation through their Continuous Improvement approach
• Partnering
• chfa approaches working with Vendors as partners
Achieve Strategic Objectives
Rapid processing of single family loan files is evidence of advancing
continuous improvement
• That is a key philosophy that CHFA has embraced to improve our
operations
• CHFA believes that more efficient, effective operations lead to
increased profitability, which allows us the ability to have a greater
community impact in the communities we serve
“You can’t manage what you don’t measure”
Analytics review
Questions?
Buddha Logic, Inc.
• 4845 Pearl East Circle,
Suite 101
• Boulder, Colorado 80301
• 720.739.1773
• http://buddhalogic.com
CHFA
• 7595 Technology Way,
Suite 300
• Denver, CO 80237
• 303.297.2432
• http://www.chfainfo.com