Three keys to achieving 40% more efficiency in commercial lending ops

Friday, April 19, 2019 | By Janelle Sullivan

Three keys to achieving 40% more efficiency in commercial lending ops

A recent assessment published by the Mortgage Bankers Association estimates that commercial and multifamily mortgage originations increased to more than $573 billion in 2018. As lenders compete to take on additional business, many will struggle because their current solution platform doesn’t provide the data and automation necessary to meet rising customer demand for digital experiences, as well as compliance and operational efficiency requirements. That’s why automation is often the number one driver of digital transformation projects at commercial and multifamily lenders.

Collecting and Assimilating Data can be a Formidable Challenge

Despite the acceleration of digital transformation in the financial services industry, much of the data required to originate and service loans still resides in disparate systems, Excel spreadsheets, group and personal email boxes, and as image files scattered across various network drives.

That data must then be distributed according to the deadline, employee skill level, and risk requirements so loan servicers can be assured all tasks are completed timely and accurately. The more lenders can automate this process, the more scalable their loan operations become.

Three Building Blocks of Digital Process Optimization

For a loan origination and servicing system to achieve optimal digital process automation, it must be fully integrated with a robust content management system (CMS) and a business process management system (BPMS). The CMS must have the ability to capture, assimilate and organize both structured and unstructured data and images via multiple channels such as digital forms, email, scans, faxes, or even manual data entry. This integration will improve process speed and agility by reducing unnecessary search time through paper or electronic file cabinets or across web-based, collaborative platforms. 

A BPMS, also referred to as a workflow system, enables lenders to discover, model, analyze, measure, improve, optimize, and automate their business processes. BPMS will help mortgage bankers accelerate such processes as loan submission, onboarding, customer change management (contacts, phone numbers, etc.), and regulatory compliance. 

The BPMS can also help case managers with the routing of unstructured case documents, such as lenders assessments, underwriting contracts or funding. This allows lenders to mitigate their risk, boost staff productivity, and improve the customer experience—all while reducing the cost to service loans.

Efficient commercial lending processes are also highly dependent on timely and effective communication to third parties for collection of annual documentation such as rent rolls, appraisals, and operating statements. Therefore, the BPMS should provide a versatile correspondence platform that along with the Content Management System, enables lenders to improve operational communications with their customers while storing the correspondence in their CMS attached to the appropriate work task. 

Seamless Integration is the Key

Seamless integration of all three systems—loan servicing, CMS and BPMS—addresses all the automation, visibility and data management capabilities lenders need to compete for new business. Companies that implement and integrate all three systems eliminate backlogs and complete as many as 40% more tasks per day.

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