Loan Ops Solution

SOLUTION OVERVIEW

EMC Documentum Solution for Loan Operations Accelerate processing, reduce costs, and adapt quickly to changing market demands

THE BIG PICTURE

Lending is a highly competitive business. When market conditions deteriorate, lenders often focus on reducing time-consuming exception items, booking loans earlier in the process, lowering unit costs, and improving the customer experience. Achieving progress in these areas requires the adoption of a more efficient processing model that can:

• Lower the cost per loan by leveraging fulfillment processes across mortgage, home equity, consumer, and commercial loans

• Reduce exception items and decrease time to resolution

• Employ workflow to improve overall operational efficiency and productivity

• Enhance the customer experience with improved communication during the approval process

• Scale easily in response to market fluctuations

• Mitigate know-your-customer risk through streamlined, secure access to internal and external data sources required to complete loan transactions

• Eliminate operational bottlenecks in serial processes • Reduce lost, missing, and incomplete documents and files • Improve service levels through improved cycle time and fewer call backs

• Lower the cost per loan via business process management and process automation

• Use forms automation to standardize transaction and account maintenance activities • Integrate and leverage investments in data mining, business intelligence, and line-of-business (LOB) systems—including legacy applications This kind of model requires a common platform that enables staff decision-making and intervention and that helps lenders achieve straight-through processing efficiency.

Lending industry characteristics and the process efficiency challenge Lenders typically follow a five-step process: origination, underwriting, closing, post-closing, and servicing. Each of these steps involves tasks and individuals in a variety of sub-processes. All too often, lenders treat these processes separately, which makes it more difficult to unite and optimize them. A bottleneck in any sub-process can severely impact efficiency targets and customer service goals. Industry compliance requirements also have an impact on processing efficiency, as regulatory standards change to reflect market conditions and these standards impose increased validation, documentation, and audit burdens. For the most part, loan operations is an ideal environment for straight-through processing. Nevertheless, sub-processes, such as exception item handling, require “off-ramps” from the straight-through process flow. These “off-ramps” allow sub-processes to be managed with additional steps or control services, some of which may be manual, when necessary. Once these steps are completed, the necessary

EMC Documentum | content-enabled solutions

information is routed back to the process flow. With an improved process model that delivers straightthrough processing benefits, lenders can drive down costs and significantly boost efficiency by: • Automating, streamlining, and integrating processes • Eliminating paper and redundancies • Shortening cycle times and reducing errors • Enabling collaboration • Supporting (LOB) applications • Ensuring compliance • Improving the customer experience

The five steps of the lending process

Meeting the straight-through processing challenge with EMC Working toward the ideal of straight-through processing in loan operations requires a foundation that supports the transition from paper-based, manual processes to digital image-based, automated processes. Such a foundation is at the core of the EMC® Documentum® solution for loan operations. The solution delivers improved control of the loan operations process from origination through servicing, minimizes exceptions, speeds processing, and lowers costs. And it is compliant with Mortgage Industry Standards Maintenance Organization (MISMO) standards, which studies show can lower direct costs and raise overall margins on the average loan. The solution integrates with any purpose-built or LOB application and supports loan operations in five areas: intelligent data and document capture; better management of business processes; enhanced customer communication, improved information access and delivery; and automated retention, archiving, and storage.

Intelligent data and document capture The Documentum solution supports central or distributed information capture in a wide variety of file formats and document types, including paper, fax, and electronic data sources. Through automated classification and metadata extraction, it converts information into electronic, business-ready content that can be dynamically processed and routed for review and approval using virtual folders or sent to LOB systems and enterprise applications. The solution also includes tools for designing and publishing electronic forms that can capture information, automatically trigger a workflow, and store the information in the Documentum repository.

Better management of business processes Loan operations are equally transaction, process, and content based, playing to a key strength of the Documentum loan operations solution. The Documentum solution integrates content with business processes, delivering robust business process management (BPM) capabilities for defining, modeling, automating, orchestrating, and optimizing processes. These capabilities provide automation of content-centric processes in all phases of loan operations, seamlessly integrate processes from other systems, and accommodate exception processing.

An effective BPM solution includes process modeling and simulation tools that enable bottlenecks and inefficiencies to be identified and corrected before a process is put into production. It also features continuous business activity monitoring to gather realtime information for process tuning and optimization. Applied to loan operations, BPM can: One of Europe’s leading private banks uses Documentum to: • Increase operational efficiency and speed the corporate lending process • Perform better risk analysis • Improve internal auditing with automated workflow

• Automatically route virtual loan files for review and approval, coordinating the actions of people and processes • Apply and enforce process rules, records management procedures, and retention policies that effectively manage the content lifecycle, ensure compliance, and limit risk • Integrate with core posting and financial systems, customer-centric applications, and external data sources • Merge acquired content with standardized templates to deliver timely information to customers

• Reduce storage costs • Enforce industry mandated regulations

Modeling the loan approval process

Enhanced customer communication Even the most efficient loan operations processing can fall apart in one critical area—interfacing with the customer. Yet customer communications are a critical aspect of loan operations. Regulatory requirements dictate that customers receive all the necessary terms, conditions, and disclosures associated with a loan and that these communications meet regulations. Corporate policies may dictate that these documents meet brand standards. Documentum enables automatic creation and delivery of sophisticated, personalized communications that speak directly to the specific customer needs, improving the overall customer experience and setting the stage for a more profitable long-term relationship. Easy-to-use templates enable creation of any kind of document across the entire loan lifecycle, from personalized welcome packages, disclosures, and loan agreements to marketing collateral, reward and loyalty program offers, relationship statements, and much more. These templates are created from information residing in LOB and customer information systems and can be stored and managed in the Documentum repository.

Improved information access and delivery The Documentum solution enables every participant in loan operations to have secure, role-based, on-demand access to information and a 360-degree view of customer data and business transactions. Once information is housed in the repository, it can be easily viewed, searched, and annotated at any time and is always available to support faster, more informed decision making and improved customer service.

Automated retention, archiving, and storage The EMC Documentum loan operation solution can include: • EMC Captiva® • EMC Centera® • EMC Document Sciences • EMC Documentum • RSA® Security • ILOG BRMS

Efficient processing solutions must support information lifecycle management priorities such as the archiving of loan documents as records for retrieval by internal and external regulators and auditors. Documentum records management functionality operates across all content types and delivers flexible automation capabilities—such as auto records declaration—that can be tailored to fit the requirements of any environment. Records declaration and archiving can be triggered from within operations processes and include migration of archive material from production systems to less expensive storage.

The solution of choice for loan operations The Documentum solution for loan operations combines document capture, business process management, records management, customer communications, and a best practices deployment methodology to: • Lower cost per loan by leveraging fulfillment processes across mortgage, home equity, consumer, and commercial loans • Employ workflow to improve operational efficiency and productivity • Scale easily in response to market fluctuations • Eliminate operational bottlenecks in serial processes • Reduce lost, missing, and incomplete documents and files • Boost service levels through improved cycle time and fewer call backs • Build integrated processes with internal and external partners • Increase customer satisfaction and retention The Loan Operations solution is part of the EMC Documentum content-enabled solutions, which include a full range of EMC products, services, and support, as well as EMC-certified partner technologies and services. Our industry experience and process expertise help you achieve maximum value in the minimum time.

EMC Documentum content-enabled solutions This solution is one of many content-enabled solutions offered by EMC and our partners. EMC Documentum content-enabled solutions help organizations solve business problems specific to their function or industry. With a content-enabled solution, organizations can streamline and automate processes, capture and integrate unstructured content into business processes, and properly retain and archive information. EMC Documentum content-enabled solutions are designed to shorten deployment cycles as well. These solutions encompass a full range of integrated EMC products and professional services, combined with EMC-certified partner technologies and professional services. The combined industry experience and process expertise of EMC and our partners help you achieve maximum value in minimum time.

EMC Corporation Hopkinton Massachusetts 01748-9103 1-508-435-1000 In North America 1-866-464-7381 www.EMC.com

Take the next step To learn how the EMC Documentum solution for loan operations can help your organization achieve straight-through processing efficiency, visit www.EMC.com or call 800.607.9546 (outside the U.S.: +1.925.600.5802)

EMC2, EMC, Captiva, Centera, Documentum, EMC Centera, and where information lives are registered trademarks of EMC Corporation. RSA is a registered trademark of RSA Security Inc. All other trademarks used herein are the property of their respective owners. © Copyright 2008 EMC Corporation. All rights reserved. Published in the USA. 5/08 Solution Overview h3988.1