e-Lending in a Nutshell - Lender

     The Problems      Size of Business and Competition      Total Picture      End-to-End Solution      Turnaround Time      Simple System      Distributed System      Benefits/Cost Effective      Who Can Use Our Products?      Architect/Demos (Prototype)
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The Problem
Lending processes are:
Time consuming
Very static
With many redundancies
Turnaround time still takes days if not weeks
Still using the 1950’s technologies
eCommerce technologies are capable of helping the “majors players” communicate on the same channel and enable the lending process to become a real-time system with little or no waste, or redundancy. The entire turnaround process can be reduced essentially to a matter of hours.

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Size of Business and Competition
Lending is more than a $200 billion a year business. Considering the fact that interest rates are now at their lowest point in history, business is booming. Lenders, brokers, title companies and a number of other services are all competing, and each is employing the latest technology to secure an edge over the competition. The result is eCommerce systems, which service one or two ends, but does not address the total picture.

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Total Picture
The lending process starts with the mortgage broker and ends with the investor buying the loan. The paper trail of this process is analogous to that of the 1950s. The core source of information is the mortgage broker. The lenders’ account managers prepare documents with the information being provided by the broker. Both the broker and lender retrieve the borrower’s credit report. The underwriter carries the burden of correcting and approving the loan, where the underwriter’s supervisor is pushed to produce volumes of loans. The funding team members are all stressed to approve numerous loans and the entire process is done in a chaotic fashion. These processes overlap with effort, time and money wasted. The account managers’ main goal is volume, which sometimes leads to double submission of work, and files with double copies that have no value to the loan approval process. Existing software does not provide statistical information, or a means of checking/auditing information for lenders to learn from or keep track of what and how things are being done. The paper files with their faxes and Xeroxes, appraisals and others are stored, which takes time, effort and room. Auditing these files is a big task, which involves a great deal of effort from managers and workers. The appraisal processes requires great effort and communication between the data-entry group, Account Managers, appraisal department, brokers, and the paper trail is quite impressive. Paper copying, faxing, storing and disposing is a monumental task and the cost is quite high and also not environmentally friendly.

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End-to-End Solution
The true fact is that lenders end up with the mortgage final packages. In most cases, the final package is a paper file that is stored for a number of years and moved into a micro-fish. Some lenders do use a database that stores files electrically. The lending package starts with the broker and every player in the lending trail adds their piece.

Our End-to-End Solution is that the lender database should the start and the end. Every player will be working on the lender database with accessing privileges. Such an approach simplifies all the processes and reduces redundancies and overlapping effort.

Security, accessing privileges, performance, web-enable, scalability, flexibility, user-friendly, reusability, distributed system and other issues must be address by our End-to-End Solution.

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Turnaround Time
Our system is a web system that will be used by both brokers and lender employees. Brokers will be using the system directly without the need to fax or mail any information. Faxed documents will be converted to either text files or images that are electronically emailed, stored and parsed (evaluated). Error checking and automation of tasks will be part of the system features and design.

          30% reduction in expenses
          30% increase of production

Loan set up will be totally eliminated or reduced to a fraction of what it is now. Emails and electronic forms will replace faxes, phone calls, copying and the time spent doing these tasks. We are proposing a software package known as a “Calendar”, which will help users with timely tasks and electronic forms. These will replace faxes and phone calls. Time, paper and effort saved using our system, will exceed more than 30% of the actual working hours and material needed to perform them.

Our system will cut the turnaround of the loan processes by more than 50%. By looking at some of leading lenders existing system and structure, we can roughly assume the following:

Broker document preparation

2 hours

Copying and faxing documents or mailing them

1 hour

Account Managers putting files together

1 hour

Setup data entering

2 hours

Appraisal department task

4 hours

Underwriters do their thing

4 to 6 hours

Back-forth communication

2 hours

Approval process

2 hours


2 hours


4 hours

Assumed total:

24 hours

Our proposed web system will automate most of the tasks without any redundancies or errors. The broker will enter the information in our web system, which will correct and prompt the brokers for any errors or missing information. The information will populate lenders database for the underwriters, account managers, appraisals and funding to perform their tasks in parallel or sequences without any delays or errors. Credit reports will be retrieved only once by lenders. Our system will parse the credit reports (in milliseconds) into tabulated forms for easy lookup or evaluation by underwriters. The Math done by funding will be done with a mouse click. Investors will have access to electronic forms as a final product for purchasing. We are proposing 1 to 3 hours of turnaround time using our system. Lenders auditors will have a system feature that will parse the files and look for errors and prepar a report. Auditors will be able to look at every aspect of the system and make reports.

Customer Service will have access to the system and be able to help brokers, title companies, appraisers, borrowers or any one with questions and concerns. Customer Service can help corrected errors that were entered into the system. Our system will have On-Line Help that guides Customer Service personal with latest information and rules and regulations.

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Simple System
Our system can be architected to accommodate anyone who wishes to become a virtual lender. This means that a broker, a title company may become a virtual lender and be able to sell loans to investors. We can architect the system to fit the broker or title company’s requirements and budget and provide a small system that will do the job from end-to-end. We can also provide the web hosting and database management. We can create a secure system that can run on the web and can be managed by a single individual from his/her home or office using their personal computer. Such a virtual system can be ideal for franchises with offices all over the nation. This will help centralize the business and help with the uniformity of the business processes, which will save money, time and eliminate conflicts.

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Distributed System
A distributed system is an Internet/Intranet system that allows anyone in the glob to access the system. This means that lenders, brokers, title companies, appraisers, or anyone can access the system with certain access privileges. All lenders offices regardless of their location can work with the system and workload would be distributed without any conflicts, errors or redundancies. Brokers, title companies and appraisers would be working off the system or may use the system as their own. This would free lenders from the paper trails, overnight deliveries, and speed communication and loan processes.

For a major lender with offices distributed across the nation or across the world, a distributed system is a must. Most major lenders have an existing software system, which took years and millions of dollars to development. Such a lender may view our system as a major task with huge cost of retraining and development and endless changes. The reality of this is our system is designed to be integrated into any existing system or platform. Our system is designed using Object Oriented Technologies that is made up of pieces (objects) such as Lego chips that can be added to any system. We are also using Java technologies, which is the lasted and platform independent. We help lender’s development team with system integration and knowledge transfer.

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Benefits/Cost Effective
     Speed the loan processes
     Eliminate redundancies and errors
     Provide paperless processes
     Automate tasks and processes
     Reduce cost
     Reduce workers’ stress
     Increase workers’ productivity
     Web-enable the software system
     Work with a web system that is fast and secure
     Provide statistical information for correcting errors and future plans
     Provide structured management plans
     Provide structured processes

The overall benefit of what is mentioned is at lease:
     Paperless processes
     30% reduction in expenses
     30% increase of production
     Cut the turnaround of the loan processes by more than 50%
     Save time, money, stress and effort

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Who Can Use Our Products?
Our system is a web application that can be customized to perform a number of tasks, which will help any of the players of the loan processes. Brokers, title companies, appraisers, broker franchises, lenders, a software vender, a credit report companies, bankers, investors or business prospectors can use our system to do the following:

     Create a web application
     Speed the business processes
     Become a virtual lender
     Become a full service lender
     Expand and increase the business
     Become a web service providers for brokers, lenders, title companies or appraisers
     Become the middle-man for lending processes

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The lending process has a number of players and to architect a web solution, we need to understand the role of each player and sequences of events that must take place for overall the system. Each player also has different accessing privileges and security is a major issue in the architect. The system may need to run of the Internet, Intranet, local network or any platform (IBM, UNIX …). The image we are presenting as our architect has each player connected to one or more end depending on their role. For example, an underwriter, or an account manager (as an employee of the lender) may access the system from the lender local network or from the Internet. This may allow lenders employees to work from the main office, their homes, different sites or offices and/or any place in the world using the Internet. Such an Internet access may allow workload distribution among different offices, which will increase productions without any traveling, overnight shipping or phone calls.

System Architect

All players work off one database and system will help reduce redundancies, conflicts, or errors. Auditors will not be chasing a paper trail and incomplete information since the system will be flagging them as they are entered into the system. Investors will have access to the system via the Internet, which may give them more freedom and allow more investors to access and purchase loans.