Central Operations – Missing Files

Project Description:

Problem Statement: Once booked and audited, Mortgage Servicing Files are retained at the Central File Room in Queensgate. Receipt tracking of booked mortgages indicate that consistently greater than 10% of files are not received within 90 days of booking. Missing files result in unavailability for secondary market resale, lien release fees, repurchase exposure, personnel search effort, and inability to address Servicing and Legal issues.

Goal Statement: Reduce the number of mortgage files received greater than 90 days from system booking to 2% of monthly volume.

Start Date: August   End Date: January

Project Metrics

Sigma: Measure: 3.3 Control: 4.0

DPMO: Measure: 30,235 Control: 6,664

Project Benefits

Net Savings:

• Direct Savings: $1.4MM
• Soft Savings:
  • Avoidance of Lien Release search fees
  • Additional Mortgages available for sale into the Secondary Market
  • Reduction in buyback/indemnification risk
  • Reduction in rework cost, Improved customer service

Realized Savings:

• Direct Savings: $1.2MM
• Soft Savings: Efficiencies realized as per above

Project Accomplishments

• Source system & Database synch-up – Verified that data is consistent across both Systems. Determined controls that
  will keep both systems in synch.
• Implemented bar code tracking and reporting by Affiliate. Identified alternative methods for printing bar codes.
• Created a uniform packing list for use between Post Closing and the Central File Room for document receipt verification.
• Analyzed & documented processes for more meaningful reporting of files not received. Created new reporting format.
• Process has remained in Control for over 9 months