The mortgage industry is notorious for its lengthy manual handling times and repetitive processes with the average loan taking approximately 45 to 60 days to close. Additionally, the average loan passes through 15 to 18 users from end-to-end; there is ample opportunity for automation.
Much to do, but where to start? In order for mortgage lenders to get their feet wet with automation, HPA created a suite of “instant on”, plug-and-play solutions to speed up the loan cycle during post-closing, called Cognizant® HPA Quick Automate.
What is HPA Quick Automate: HPA’s Quick Automate solutions are designed to integrate with most Loan Origination Systems (LOS) and require no client infrastructure with their turnkey design. The family of solutions is a quick, low-cost offering for lenders looking to automate their “low hanging fruit” and reap immediate value from their automation investment for the fastest time to productivity and value.
Currently, HPA’s Quick Automate solutions automate investor stipulations, MERS registration and transfer, and purchase advices with more processes in development. The solution is powered by Cognizantâ HPA Investor Link, a bidirectional automation solution.
HPA’s Investor Link: HPA’s Investor Link is a proprietary solution that supports bidirectional automation by requesting information from the LOS to investor platforms and posting information from investor platforms back into the LOS. This allows lenders to have a single location to access data from most major investor systems to update all information to complete the sale of a loan to any investor.
Investor Stipulations: Investor stipulations are notorious for their error-prone and lengthy manual handling times that typically take between 20 and 40 minutes per investor platform. If a lender is manually running stipulations daily from seven different investors, that could take approximately 160 minutes (2 hrs, 40 mins). With HPA’s Quick Automate, the average processing time per investor platform is just over a minute which means running the same seven platforms would take only nine minutes.
The best part about HPA Quick Automate for Investor Stipulations is that it can be run every hour, on the hour for normal business days ensuring post-closing teams have the most up-to-date stipulations throughout the day. If a team was to manually run all seven investor platforms eight times per day, it would take 1,280 minutes (21 hrs, 20 mins) whereas with Quick Automate it would take only 72 minutes (1 hr, 12 mins) which is a 94.26%-time savings.
How does it work:
HPA’s Quick Automate for Investor Stipulations is powered by HPA’s proprietary Investor Link technology that retrieves stipulations from investor platforms as frequently as needed. The stipulations are then copied and automatically entered back into the LOS. Once completed, the post-closer is notified of new stipulations to start satisfying the conditions immediately.
Key Benefits:
- Reduce the risk of repricing
- Decrease the risk of late delivery fees
- Reduce the risk of stipulations being overlooked or not captured promptly
MERS Registration and Transfer: MERS registration and transfer are required processes that are manual-labor intensive which could create a lag time for funding, delaying the closing and sale of a loan, and have the potential to negatively impact the originator/investor relationship. The typical manual processing time for MERS registration is eight minutes and MERS transfers are five minutes but the HPA Quick Automate solution takes just 30 seconds.
Every 10,000 loans a lender processes via MERS registration would take approximately 1,333.34 hours (166.67 days) whereas with HPA’s Quick Automate it would take roughly 83.34 hours (10.42 days) which is a 93.75%-time savings.
How does it work:
HPA’s Quick Automate for MERS is also powered by HPA’s Investor Link technology so when a loan hits a certain milestone, the LOS is triggered to initiate the MERS registration process. The API makes a call to MERS for batch updates and when the API receives a response from MERS, the solution automatically updates the status in the LOS. Once completed, the post-closer is notified of the MERS registration or transfer.
Key Benefits:
- Direct integration to both the LOS and MERS
- Increase positive impact on servicer relationship for post-closing team
- Eliminate costly errors
Purchase Advices:Purchase advices are a manual, heavy-error-prone process that can cause accounting issues during month-end reconciliation for lenders. The new HPA Quick Automate for Purchase Advices can access purchase advices from any posted position on any investor platform to ensure fees and data points are accurate while reducing manual time spent.
How does it work:
When a loan is moved to a closing milestone, the purchase advices solution is triggered and retrieves the data from multiple investor platforms. The purchase advices are copied and automatically entered into the LOS and once completed, the post-closer is notified of the process completion.
Key benefits:
- Single location to collect data from multiple investor platforms
- Greater accuracy reduces risk in audits and month-end reconciliations
- Eliminates repetitive manual labor and costly data entry errors
HPA is always seeking new ways to make life easier for mortgage lenders. If you are looking for a fast, simple, low-cost way to get started with automation, call or email us to learn more about how Quick Automate can save your team time and reduce errors.