Jeanie Lutterbei - PowerPoint PPT Presentation

Title: Jeanie Lutterbei


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An Update on our Progress
Jeanie Lutterbei First Vice President
Technology Integration
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Federally chartered savings bank Founded in 1987
Corporate Headquarters Troy, Michigan
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2000 2002 2003

• Bank branches in Midwest 52 87 100
• Loan officers 180 700 950
• Total assets 5.8B 8.4B 10.9B
• Mortgages closed 9.8B 42B 56.4B
• Mortgage servicing portfolio 6.6B 35B 40.0B
• Employees 2000 4200 3500

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• Review your Technology Strategy
• Support the Vision
• Support the Current Environment
• Step Outside the Zone
• Stop, Look, Listen, and Pro-Act!
• Institute Project Management as a Science
• Require Business Unit involvement
• Organize and deliver better results
• Perform a Competitive Response Analysis
• Change Your Environment
• Look for New Products Its a New World

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SHORTEN CYCLE TIME
COMPLIANCE AUDIT
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Mortgage Volume High loan volume necessitated
reducing paper and eliminating antiquated
processes Underwriting Costs Paper processes
require significant manpower which reduces
profit per loan Post Closing Review Issues Lost
loan documentation increases risk Processing
Service Levels Customers are more interested in
loan processing turn times than cost paper
processes were slow
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Paperless Initiatives On-going goal to
eliminate paper in all mortgage processes
Increased Service in Underwriting Use technology
to accelerate loan processing Reduce turn times
and touches per loan Document Security Reduce
lost loan documentation Become audit proof
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Compelling Events
eSign Legislation Rapidly changing interest rate
environment Broker acceptance of new
technology Image documents accepted in secondary
market
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Flagstar Bank Integrated Document Management
(IDM) Image management and image workflow
Eliminate Paper in Mortgage Processes
Underwriting, post-close review and loan delivery
Document access for loan servicing
Document access for customers
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Solution Elements

• Hardware Platforms
• AIX Application Servers Dell W2K Web Servers
• Oracle Databases Java Development Preference
• EMC Clarion magnetic storage
• BEA WebLogic - new standard
• FileNet Tools
• Image Services, eProcess
• ValueNET Assistance Pyramid Solutions, Inc.
• User interface customization
• Workflow processing
• Image exporting tools
• On-site development programmer training
• Other Components
• FaxBack Inc. NET SatisFAXtion fax capture
• Kofax Ascent Capture
• Kofax DOKuStar Forms Recognition

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IMAGING STATISTICS

• 43,200-68,000 fax pages captured, processed,
  and routed per day
• Over 180 million images (pages) managed
• 2,300 internal users / 6,000 external brokers

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Departments using Solution

• Underwriting
• Corporate central underwriting Q4/2001
• Regional - remote office locations across the
  US Q2-Q4/2002
• Contract Underwriters capable of working from
  home Q1/2003
• Government FHA / VA loans Q4/2003
• Broker/Correspondent Communications
• View images from wholesale.com web
  site Q1/2003
• 99 of appraisals uploaded to wholesale.com Q2/2
  003
• Document uploads directly to underwriting Q1/200
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• Correspondent Acquisition / Loan Review
• Post closing operations Q2/2004
• Other
• Consumer lending home equity loans Q3/2004
• Accounting accounts payable document
  storage Q1/2002
• Funding processing of loan funding
  requests Q3/2003
• Loan Servicing Q3/2001

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User Reluctance Users must shift to working with
images and not have the comfort of
paper. Customer Reluctance Originally, customers
were familiar with mailing packages and
uncomfortable faxing. Today, reluctance is gone
and they are asking for more capabilities.
Investor Challenges Loan investors familiar
with taking paper on loan sales, must develop
process for image transfers.
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Paper underwriting processes had numerous steps
and people to handle paper volume and customer
inquiries
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Electronic workflow automates many tasks and
provides a more straightforward process with less
touches per file Electronic submissions reduce
fraud and increase speed
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Flagstar Bank Paper-Based Loan Sale
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Flagstar Bank Automated Electronic Loan Sale
Automated loan transfer to investors takes only
50 man-hours to process.
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Return On Investment

• More loans processed per underwriter
• Twice as much at one-fifth the cost
• Before 5 to 7 files daily (paper) After 10 to
  12 files daily (paperless)
• Contract underwriters 3x more productive
• More loans processed in post closing review
• At least 30 more efficient
• Workflow 8 month ROI saving 139,000/month
• Forms Recognition 13 month ROI saving
  36,000/month
• Reduced processing costs
• Operations using paperless processes cost half of
  similar paper operations
• Underwriting costs - Before 250 After 60

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Return On Investment

• Greater flexibility
• Easier opening and closing of offices / file
  transfers load balancing
• Stronger customer service
• Servicing access to all customer files (no
  requests to warehouses or file rooms)
• Reduced paper costs
• No fax machines or file rooms
• Reduced time to transfer loans to investors
• No paper files
• Reduce effort from 2,880 man-hours to 50
  man-hours per transfer

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Business Challenges Addressed

• User Reluctance
• Rewards for using systems - flat panel monitors
• Manager support - forwarded paper fax
  lines/removed printers
• Investor Challenges
• Work to help investor overcome their system and
  operational issues

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Decision making process

• Process started in 2000 by Information Systems
• RFP to five vendors
• RFQ to final two vendors
• Users were final decision makers
• Information Systems provided a recommendation
• Key decision factors
• FileNet fiscal strength
• Pyramid Solutions project management skills
• FileNet Pyramid Solutions local support
  framework
• Softwares scalability
• FileNet advice
• Provide examples of others using solution to
  accomplish similar objectives
• Strongly support partners if used
• Provide information on support infrastructure

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Enterprise next steps

• Forms Recognition
• Eliminate document indexing with third-party
  forms recognition
• Enhanced Electronic Document Submission
• Upload documents via web to provide for immediate
  underwriting
• Live Underwriting now live
• Loan Origination System Integration
• Create one interface for back-office loan
  processing that integrates images, documents and
  process

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• Investigate all Areas for Possible Integration
• Find the walk-throughs and eliminate them!
• Administration
• Banking Operations
• Back Office Processes
• Enhanced Electronic Document Submission
• Upload documents via web to provide for immediate
  underwriting
• Live Underwriting now live

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Lessons Learned

• Start Small
• Integrate in Phases for functional areas.
• Enhanced Electronic Document Submission
• Upload documents via web to provide for immediate
  underwriting
• Live Underwriting now live
• Loan Origination System Integration
• Create one interface for back-office loan
  processing that integrates images, documents and
  process
• Web Content Management
• Manage published web content put procedures in
  place

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