Streamlining Mortgage Processing with Robotic Process Automation

Finance

Overview.

Modernizing Mortgage Processing for Efficiency and Accuracy

A leading banking and financial services provider faced persistent inefficiencies in its mortgage servicing process. Analysts were bogged down by manual reconciliation of loan data received from eight different mortgage servicers. Inconsistent data formats, combined with dependency on in-house IT support, caused frequent delays and errors. This created a backlog of unprocessed loans, slowing down the company’s ability to deliver timely services. The organization turned to Pegasus One for a transformative solution that could streamline the process, eliminate redundancies, and improve overall capacity.

Robotic Process Automation (RPA), Data Standardization

Challenges.

Bottlenecks and Inconsistencies

The client’s existing mortgage servicing process had several pain points:

  1. Manual Reconciliation and Data Disparities:

    • Analysts relied on a labor-intensive process to reconcile loan data, which was often riddled with inconsistencies. Each mortgage servicer provided information in different formats, requiring extensive manual intervention.
  1. Dependence on IT Support:

    • The reconciliation process required regular input from the in-house IT team to standardize data and address exceptions. This dependency introduced significant delays.
  1. Limited Capacity and Backlogs:

    • Due to these inefficiencies, analysts could only process a limited number of high-priority loan requests daily, leaving a growing backlog of unprocessed loans.
  1. Error-Prone Processes:

    • Manual handling of loan data increased the risk of inaccuracies, leading to further complications in loan processing and compliance.

Our Solution.

Bot-Powered Mortgage Processing with RPA

Pegasus One implemented a transformative solution leveraging Robotic Process Automation (RPA) and advanced data standardization techniques.

  1. Standardized Data Integration:
    • Created an in-house loan data format to standardize information received from the eight mortgage servicers.
    • Developed automation workflows to align incoming data with the standardized format, minimizing the need for manual adjustments.
  1. Automated Data Analysis and Reconciliation:
    • Built an RPA-powered Residential Mortgage Accounting solution to handle file analysis, data extraction, and reconciliation.
    • Designed bots to analyze and compare datasets using predefined business rules, ensuring no discrepancies were missed.
  1. End-to-End Process Automation:
    • Eliminated the dependency on the in-house IT support team by automating tasks like exception handling and data query generation.
    • Integrated bots to perform monthly comparisons and update loan-level differences, such as principal and interest rates, directly in the mortgage system.
  1. Scalable and Reliable Architecture:
    • Implemented scalable RPA bots capable of processing high volumes of loan requests, ensuring future growth without additional resource overhead.
    • Designed the system to ensure compliance and accuracy as loan terms were modified or updated.

Results.

Transforming Loan Processing Efficiency

  1. Drastic Reduction in Handling Time:
    • Reduced average handling time from three minutes to five seconds per loan request.
    • Enabled analysts to focus on strategic decision-making rather than repetitive tasks.
  1. Significant Cost Savings:
    • Achieved annual savings of $55,000 by eliminating IT team dependencies and reducing manual errors.
  1. Enhanced Processing Capacity:
    • Increased loan processing capacity by 50%, allowing the team to handle backlogs effectively and meet service-level agreements (SLAs).
  1. Improved Data Accuracy:
    • Ensured consistent updates to the mortgage system, improving compliance and reducing audit risks.

Value Delivered .

By automating and optimizing the mortgage servicing process, Pegasus One delivered a solution that transformed the client’s operational efficiency. The integration of RPA not only eliminated bottlenecks but also created a scalable system capable of handling the demands of a growing user base. This innovation empowered the client to:

  • Save time and resources, redirecting efforts toward higher-value tasks.
  • Meet customer expectations with faster and more accurate loan servicing.
  • Establish a foundation for future automation initiatives, reinforcing the organization’s leadership in financial services innovation.

With this solution, the client was able to streamline processes, reduce costs, and significantly improve their service delivery, setting new benchmarks for efficiency in the mortgage industry.