Mortgage Company

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.