Mortgage Point of Sale

Project Description:

Problem Statement: The Cycle Time (application to close) for new mortgages in the retail channel averages 36 days. The target cycle time is 20-30 days w/ the theoretical critical path being 5 days. The increased cycle time results in lost revenue& lower customer service.

Goal Statement: Reduce cycle time (shift the process average)from 36 days to 20 for loans approved using the automated underwriting system (LP).

Start Date: September End Date: July

Project Metrics

Sigma: Baseline: -.42 Current: -.30
DPMO: Baseline: 662,337 Current: 616,405
Cycle Time: Baseline: 36 days Current: 25 days

Project Benefits

Net Savings: $13.1MM

Direct Savings: Cycle time reduction $10MM

Soft Savings:

• FTE Reduction $3.1MM
• Increased Customer Satisfaction
• Improved Customer Retention
• Increased Cross-Selling Opportunities

Project Accomplishments

• Trained over 400 people across the affiliates on the standard process.
• Currently @ 43% Utilization
• Statistically significant decrease in cycle time from 36 days to 25 days with POS implementation.
• Potential project – Reduce variation (since this project shifted the mean)