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Mortgage Company

NEEDS-BASED RESULTS

 

Mortgage Company

SITUATION

Leading full-service mortgage company needed to significantly increase capacity while decreasing cost.

DRIVER GOAL

  • Double throughput without significantly increasing the cost structure.
  • Reduce the average cost per loan from $275 to $150.

RESULT

  • Reduced average cost per loan from $275 to $148.
  • Increased productivity by 52%.
  • Reduced total processing time by 35%.
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Case Study

Increase Capacity & Decrease Costs

Issue

One of the leading full-service mortgage (originate, purchase, sell and service mortgage loans and act as a sub-servicer for certain clients that own the underlying mortgage servicing rights) companies in the nation had an opportunity to significantly increase volume in its wholesale correspondent lending (WCL) operation but was concerned about driving additional cost into its operations to accommodate the additional volume. The Highland Group was asked to look at the WCL operation to determine how much additional volume could be handled by the existing resources and to reduce the average cost per loan.

Highland Approach

The Highland Group partnered with client teams to develop and install new processes and systems that were focused on cost reduction, improved productivity and reduced loan processing time.

Actions Taken

  • Redesigned workflow utilizing Lean principles, which reduced processing cycle time and improved customer satisfaction.
  • Installed a loan package prescreen process to ensure underwriters would only receive “Complete” files, which reduced lost time and significantly improved underwriter productivity.
  • Installed visual display boards in processing areas to track the status of all loan activity to ensure daily production plans are being met and to identify bottlenecks and processing issues.
  • Designed and installed a System For Managing that provides supervisors and managers with tools to more effectively plan, schedule and follow-up on daily work activity.
  • Developed a Weekly Operating Report that measures actual performance against plan for several key performance indicators to improve management accountability.
  • Developed “Standard Work” packages by position to enhance uniformity of processes, which improved efficiency and reduced errors.
  • Conducted “on the floor” coaching of first-line supervisors in the effective use of the System For Managing to better control workflow and operating costs.

Increased Productivity by

52%

while decreasing loan processing time by half

Related Information

subject matter-based

Head of Organizational Development

Don is an internationally recognized organizational change and development expert with 33 years of global experience in partnering with results-oriented clients to achieve sustainable behavioral change and targeted bottom-line results in productivity, quality and profitability. He is recognized for fostering high levels of enterprise-wide sustainable performance improvement ownership. Don’s key strengths include his ability to engage stakeholders at all levels, create collaborative environments and work within the culture to achieve leadership, management and employee breakthrough results.

Client Partner

Financial Services, Marketing & Consumer Products

Petrina is a creative, hands-on executive with over 25 years of international business experience with a proven track record of working collaboratively across traditional boundaries and solving complex operational issues. She previously served at the senior executive level of one of North America’s leading financial institutions and several global consulting organizations. There, she led engagements serving industry-leading clients in United States, Canada, England, Germany, Austria, Switzerland, Norway and the Netherlands.

Presenting Analyst

John is a Senior Executive and Presenting Analyst at The Highland Group with more than 30 years of leadership experience in management consulting. He has led hundreds of global consulting engagements that delivered an array of operational improvement solutions with total client benefits exceeding $1 billion dollars.

Project Leader

Financial Services

North America

Brandon is a senior project leader and consultant with more than 12 years of experience in helping financial services firms maximize revenue and control costs through continuous improvement. He specializes in implementing efficiency, service and quality process enhancements in Fortune 500 companies by utilizing Lean and Six Sigma principles.

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