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Deploying Automated Underwriting System for Jumbo loans at leading Mortgage firm
ValueMomentum assists Top 10 Retail originators of residential mortgages streamline underwriting decisions for non-conforming products, while reducing cycle times associated with guideline, pricing changes.
Industry
Lending
Client
Top 10 Retail Originator of residential mortgages in the US
Needs addressed
Automated Underwriting, Product Configuration, Rating & Dynamic Pricing
To succeed in the non-conforming market, our Client was seeking to:
- Make effective risk selections
- Categorize the risk into appropriate buckets to suggest a decision in line with risk policies
- Determine the product eligibility
- Do each of the above analysis intensive activities rapidly by using automation, so as to be more responsive than competitors in closing these lucrative deals
- Enhance the customer experience by delivering real-time access to status of Mortgage Application via multiple channels.
- Leverage the Internet as a means to expand sales opportunity
Technology Solution delivered
Business Rules Management Systems (BRMS)
ValueMomentum partnered with the customer to implement:
- An Automated Underwriting System to streamline the underwriting function for non-conforming products.
- Decisioning system to drive effective product management and pricing during the customer acquisition life cycle to provide effective product options and pricing.
- A best-in-breed Business Rules Engine was selected to serve as the foundation for the Underwriting system and to serve the needs of functions like Product Management and Pricing with the intent to provide reusable decisioning services that could be used by other applications.
- Key deliverables included:
- Evolved artifacts to accomplish rapid and accurate understanding, capture and representation Underwriting and product related decision rules
- Interacted with business analysts, analyzed policy documents and conducted workshop session with SMEs (Subject Matter Experts) for Rules Harvesting
- Evolved a repeatable decision pattern that drives these decisions for decision intensive areas like Underwriting, product configuration and pricing
- Developed and deployed the decisioning services.
- Proposed and implemented a GUI driven workbench environment that can automatically convert user inputs (on Underwriting guidelines, product associations, pricing structures) into code and rules that can be implemented on the underlying decision engine.
Execution model
At site, T&M
Technologies used
Fair Isaac Blaze Advisor, J2EE (Struts, EJB, MVC), XML, Rule Services, BEA Weblogic
Benefits delivered
An intuitive Rule Maintenance environment (Workbench) was implemented for business users (risk professionals, product managers, channel managers) to manage various guidelines that drive Underwriting, product management and pricing administration, thus reducing cycle times, reducing costs of maintenance and development and increasing reusability of services.
The application and workbench enhance the effectiveness and consistency of decisions which can be rolled out to customers faster, for enhanced satisfaction and positioning the Client as a preferred choice.
