Convert more applications, cross sell, cut processing & servicing costs and retain borrowers by leveraging Tavant's demonstrated expertise in the Consumer Lending domain.
Raising loan origination speed and reducing cost while ensuring loan quality
As a sub prime leader, Ameriquest wanted a progressive, end-to-end, complex solution that would ensure complete automation of its processes while ensuring strict legal compliance at all times. The need of the hour was a dynamic system capable of real-time responses, enabling early borrower commitment and decreasing loan cycle times.
Challenge
Large cycle times from loan origination to funding resulted in low number of loans being processed.
Their legacy systems were unable to handle complex loan fulfillment processes - react to real-time events, ensure legal compliance or to be able to intelligently route stipulation to underwriters.
The system also lacked the scalability to accommodate new types of loans and processes.
Solution
Tavant System aimed at reducing the gestation period from loan origination to funding from about 30 days to just 3 business days!
It contained intelligent queues to route stipulations and condition to underwriters for approval.
The integrated Document Engine (IDE), generated documents electronically, thereby online vendor integration, online document distribution and eliminating branch to HQ paper transfer.
As Tavant's system was based on Service-Oriented-Architecture (SOA) it could easily accommodate diverse business processes, creates services out of various functional components such as credit, title and appraisal. All communication between internal components are carried out via ESBs (asynchronous communication) while web services are used for communication with external entities' systems, such as those of title and appraisal vendors, credit bureaus, etc.
With inbuilt pre-defined conditions, legal compliance is ensured. This reduces the risk of introducing "unclean" loans into the system.
Since the underwriting process is now automated, underwriters don't need to waste time or manual processes and the back and forth circulation of hard copies of documents can be avoided.
SERVICE ORIENTED ARCHITECTURE IN A LOAN ORIGINATION SYSTEM
Results
> Dynamic changes to processing priorities through intelligent queues.
> Automated document generation.
> Improvement in ensuring legal compliance and salability of loan to investors.
> Optimized usage of underwriters' time.
> Stable, automated, optimized and configurable pricing engine.
> Standalone, independent and re-usable components.
> Decision-making capability - with in-built IQ, the system reduces dependency on Underwriters.
".. These milestones represent a monumental business change to improve efficiency, competitiveness and quality in sales and service. The loan processor now serves as the customer’s single point of contact, and sales and processing are handled indivisually, moving production efficiently and effectively"
Lawrence Holguin, Senior Vice President, Ameriquest
