Introduction

Transforming Mortgage Banking

The Mortgage Banking Industry is extremely

specialized and dynamic. It is highly competitive and is

defined by the existence of a large number of niche

players who focus only on lending without considering

subsidizing losses in other departments such as

traditional banking. Organizations engaged in

mortgage banking may vary in size, from small to

exceptionally large, with loan volumes sometimes

exceeding that of a nationwide commercial bank.

This vastly results in these organizations being prone

to effects of global market fluctuations. The recent

financial crisis, credit crunch and the real estate bubble

burst therefore have posed unprecedented challenges

for this industry. These crises have called for

organizations to develop and deploy standard policies

and procedures. Most mortgage lenders today are in

the process of consolidating and streamlining their

operations, necessitated by large write-offs, regulatory

pressures and changed market conditions.

Customer centricity and engagement has also become

a priority for mortgage organizations today. Non-

traditional ways of mortgage origination have become

imperative to the growth of any lender. Deloitte in a

recent case study found that 70% of consumers shop

for mortgage loans on the internet. 73% customers

also agreed that shopping for loans online is more

comfortable than traditional options. This further

emphasizes the competitiveness of today's mortgage

environment where speed is critical to revenue. In a

tumultuous regulatory landscape and competitive

environment, lenders will need platforms and tools

that can adapt to the changing regulatory landscape,

reduce costs, improve throughput time, and evolve to

achieve customer satisfaction.

Leveraging the Power of BPM & Case Management

Key Challenges in Mortgage Processing

Newgen Mortgage Process Automation Framework

The mortgage industry today is racked with many

challenges that impede efficient and cost effective

processing.

• Increased need for innovative methods to engage

customers and create the right differentiation to

remain competitive within the mortgage industry

• Provide non-traditional channels to customers to

participate in the application process

• Manual or semi-automated processes leading to

high costs and low scalability associated with key

activities in the lending process; Lenders are

seeing the need to accelerate mortgage closing

time to reduce operating costs and accelerate

cycle times;

Document intensive or paper intensive

processes make multi-branch operations

cumbersome and inefficient

Newgen's Mortgage Process Automation Framework is

built on an award winning Business Process

Management (BPM) platform and leverages Newgen's

globally recognized Case Management, Imaging,

Business Rules, and Reporting tools to streamline

mortgage processing from sale to closing.

The solution supports multi-channel mortgage

origination trough electronic/mobile submission of

documents, eliminating manual intervention and

facilitating straight through processing. It further

streamlines the underwriting process by ensuring

visibility of critical information across the organization,

thereby improving the overall process efficiency.

Newgen leverages its deep domain experience to

deliver a unified Mortgage framework that automates

key mortgage processes, drives revenue growth

through innovative features such as mobile capture

and ensures compliance to rising regulatory standards

such as CFPB & DoddFrank.

Acquisition and Origination

• Multi-channel capture for origination including

mobile capture/upload

• Mobile application for customer/sales for

capturing W2, driver's license and supporting

documentation on the go

• 1003 e-data entry with Online Portal and E-SIGN

capabilities

• Support for more than 400 document types

required for mortgage processing

• Automated document packaging, which includes

audit and verification of documentation packages

to ensure quality for investor packaging

• Seamless integration with credit bureaus, external

systems, and third party applications

• Ordering Vendor Services (Credit, Title, Deed,

Appraisals, Fraud Guard Report)

• Automated flood zone & insurance check with

notifications

Loan Processing

• Built-in agile rules engine for straight-through

pre-approval of the application

• Multiple review levels, To-Do lists, and exception

handling to minimize rework and manual errorso• Rules Engine to support 360 underwriting for

Credit, Income, and Collateral, and Case

Management for ad-hoc conditions/exceptions

• Integration with LOS, underwriting and external

systems

• Automated document generation and review of

offer notes & counter offers

• Pre-configured Dodd Frank eligibility, compliance

& disclosures such as ATR/QM Rule, 2013 HOEPA

Rule, etc.

• Comprehensive review, exception resolution and

approval for generated HUD1 /HUD1A

documents

• Monitoring and tracking of insurance

Credit-Risk Analysis for adherence to

Bank/Central Bank credit policies

Underwriting & Conditions/Exception

Resolution are often complex and cannot be

managed through manual verifications

Creation of Borrower notes and Circulation of

Offer Letters to decision makers for approval

are tedious and time consuming processes

• Disjointed steps for credit bureau and external

system checks for vendor services, appraisals,

disclosures etc.

• Increased regulatory oversight and adherence to

compliance acts such as Dodd Frank Act of Wall

Street Reformation

• Small size & large volumes of mortgages cause

challenges in processing; Assessment of small

ticket loans incurs high operational costs which

are disproportionate to the revenue generated;

Solution Benefits

Improve Efficiency and Increase Processing Volume

• Electronic movement of applications in paperless

environment using rules-driven Case

Management to maximize efficiency

• Unified view of transactions & documentation

with checks and balances to avoid re-work and

reduce processing times

• Automated routing & straight through

processing, driven through configurable business

rules to improve decision making and reduce

manual errors

Gain Visibility and Process Controls

• 360 degree view of process with real-time visual

dashboards and functional metrics

• Enhanced productivity and ROI with well defined

SLAs and KPIs for process and people

performance

• Overarching view of SLA compliance, key

performance indexes etc.

• Automatic alerts and notifications

• Escalation and exception management

Newgen Mortgage Process Automation Framework

Mortgage Initiation Channels

Portal Broker BranchMobile

Unified user experience across loca�ons / channels

End to End, Unified & Paperless Mortgage Process

Decisions/Approvals

Dashboards & Reports

Alerts &No�fica�ons

Workflow, Rule Engine, Form

Builder

Integra�on Adaptors

Enterprise Content

Management

Integra�on to Mul�ple SystemsCore, LOS, Credit Bureaus, AML, Broker Engine

Pre-configured Dodd Frank Compliance

Mobile Capture

Online Dashboards for stakeholders

Regulatory Disclosures

Online 1003 data entry

Archiving and Indexing 100400 Docs Stack

Enhance Customer Experience

• Multi-channel data and document capture

accepting loan applications / documents via

broker portal, emails, faxes, and web scanning

• Online Portal for 1003 data entry including E-Sign

capabilities

• Seamless integration with Core LOS systems,

enterprise systems and third party credit bureaus

• Easy and efficient online tracking of applications

• Improve response times to provide better

customer service with a flexible and agile solution

Improve Customer Engagement through Mobility

• Mobile Document Capture application for first-

time-right collection of data to reduce data

quality issues and accelerate cycle times

• Mobile interface to engage customers to self-

service and initiate their mortgage applications

• Mobile application interface for brokers to

process applications on the go thus reducing

processing costs

Improve Adaptability to Changing Regulatory

Requirements

• Pre-configured tools for CFPB/Dodd Frank

Compliance ensures regulatory compliance

• Configurable business rules provide agility to

adapt to changing regulatory landscape

About Newgen

• Leading Global Provider of Business Process Management (BPM), Enterprise Content Management (ECM) & Customer Communication Management (CCM)

• 1000+ installations across 57 countries

• Solutions for Banking, Insurance, Healthcare, BPO/SSCs, Telecom and Government

• Credited with some of the world's largest implementations

• Innovative culture, consistent R&D investments, 40 patents

• Employee strength 1600+

• Certified for ISO 9001:2008, ISO 27001:2005 and CMMI Level3

SOLUTIONS FOR BUSINESS PROCESS & CONTENT MANAGEMENT

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