Recovery Tips Column: Lending Data – Make It Your Friend

In today’s fast paced mortgage environment with ever-changing rates, fluctuating volumes, heightened competition, margin pressure and introduction of disruptive technology, lenders are continually challenged to maximize profitability.  The speed at which lending decisions need to be made continues to accelerate if lenders want to remain competitive and sustainable for the long run.  This speed highlights the importance of data and more importantly, the ease at which data is accessible and usable to make informed business decisions.

Historically data access has been challenging.  The typical LOS has fifteen to twenty five thousand data fields.  Lenders are hard pressed to easily access this crucial lending data — trying to pull the appropriate fields from their LOS and other systems.

 “Our industry mostly relies on static historical data. The residential loan application is a picture in time, not a video of a consumer’s journey up to the moment of truth: financing a new home. The same type of data is involved in the loan servicing space. It’s a snapshot of prepayments and non-performing loans, not necessarily identifying the patterns and the financial journey of a borrower making mortgage payments each month. I think the key data elements such as trending data; demographics and predictive analytics will provide information that is disruptive to the mortgage industry” Maylin Casanueva, COO of Teraverde is quoted as saying in Disruptive Fintech: The Coming Wave of innovation in Financial Services with Thought Leadership Provided by CEOs.

The ability to use lending data in a meaningful way puts a lender at a distinct competitive advantage.  This disadvantage is exacerbated during times of big swings within the industry such as rate changes or volume increase. 

Many lenders are reporting record volume months.  What do many lenders do in this situation?  They begin to hire more underwriters, loan officers, closers, to meet volume demands.  This works short term, but is there a better way?

So, what are lenders to do?  Accessing a lender’s data effectively creates a major competitive advantage. The key is not just in the technology but also in partnering with an expert that can help lenders learn how to apply technology, data and best practices to solve today’s most challenging lending issues.

When lenders turn to an industry expert to show them best practices on how to easily access their lending data for up-scaling while fully utilizing their technology, they will be able to increase profits. The guide can show them solutions on how to better optimize and easily access their loan origination data while allowing them to keep the data in one powerful system.

Thousands of lenders have turned to Ellie Mae for their mortgage technology needs.  They have selected the leading cloud-based platform and now, through a partnership with Teraverde, can maximize their investment.  This dynamic partnership allows lenders to easily access the key data elements from over twenty-five thousands data fields within Encompass. Teraverde has the unique combination of mortgage banking experience, highly skilled technical resources, and Encompass domain expertise to help a lender develop profit intelligence.

The seasoned Teraverde industry executives have seen and worked through major challenges in the mortgage lending and banking industries. Our executives first began working with Ellie Mae in 1995 and have used Encompass from its inception in 2006. Our experience, in-depth understanding of lenders’ Encompass needs, and innovative expertise allows us to accurately identify the appropriate methodology the first time, maximizing the Encompass investment.

We partner with lenders to provide industry insights and best practices that impact the bottom line. Teraverde has worked with over 300 mortgage lenders and banks to identify and strategically leverage their new technology and operational processes, combined with our innovative expertise and profit intelligence platform to drive ROI.

The combination of Ellie Mae’s Data Connect and Teraverde’s Coheus Profit Intelligence platform allows lenders to easily access critical lending data.  Encompass Data Connect provides lenders secure access to their cloud-based, encrypted data at any time and from anywhere. This enables lenders to maximize the utility of their existing reporting, business intelligence, and visualization tools to gain actionable data insights, expand competitive advantage, and innovate faster.

>>Access all Encompass loan data fields in near real-time without impacting Encompass performance

>>Audit multiple loans simultaneously without restrictions

>>Get 3 years of historical data right out of the box

>>Reduce manual efforts with automatic database schema updates synced with changes in Encompass

>>Maximize existing business intelligence tools using structured data provided by Data Connect

Teraverde’s Coheus Profit Intelligence is the first solution of its kind that absorbs all data sources and provides analyzed visual data of the entire lenders organization in near real time including; Encompass data fields, Secondary Marketing Data, Accounting and General Ledger Data, Servicing Data, QC- Pre Funding and Post Funding Data, and Data Warehouse. This allows the lender to take this actionable intelligence and make swift business decisions to gain a competitive advantage in the marketplace. The ability to identify and eliminate performance problems, waste, and revenue leakage is crucial, especially in today’s challenging lending environment. 

By having this profit intelligence solution absorb all the data sources, lenders are able to access Encompass data near real time with a full overview of their lending operation. With a few clicks they can dig into their data all the way to the loan level. With the power of the solution and partnership lenders can now easily identify revenue leakage. Lenders can now identify the most profitable team based on profits by Product, Branch, Loan Officer and Underwriter. The solution provides a heat map, demonstrating all branches in the entire country and illustrates which ones are driving the most revenue.

Going Beyond Expectation for Lenders

Ellie Mae and Teraverde have partnered to provide lenders the ability to tap into the true potential of data and do more with the data insights. Teraverde, Ellie Mae’s Pro Elite Partner, are working together to provide lenders the most efficient transition to Encompass, a centralized system for loan origination.

With the mortgage industry rapidly moving towards a technology, data driven approach, more lenders are turning to Encompass to have all loan information in one place and have a less paper intensive process. Ellie Mae has the confidence in the value the Teraverde family can bring to lenders. This transition, made a huge benefit for the lender:

• Bringing all data sources-Maximizing ROI
• Optimizing teams and products to drive profitability
• Perform extraction, translation and data loading quickly and easily for all data needs for reporting and business intelligence- one could quickly pull a report with near real time data, reducing the resources and human labor needed to create an Ad-Hoc report.
• Assist lenders in managing data easily for reporting, business intelligence and related uses.
• Built by and for mortgage bankers to easily build access to Encompass and analyze the data they want without the need of an IT personnel.

“Our industry is increasingly relying on data to make decisions and create competitive business advantage. There are three aspects to a meaningful data analysis. Ability to solve the right business problem, ability to trust the data and ability to contextualize the data. Lenders are starting to analyze everything from operational efficiency, profitability to even product mix based on analytics. But the power of analytics comes from reliable, real-time data that not only includes the loan data, but also other relevant datasets like demography trends, and income data. Moreover, ability to benchmark against peers and industry will provide the right context and help lenders identify real opportunities.”

Manish Garg, Vice President, Product Management Ellie Mae

Lenders must consider technology solutions along with experts that can help lenders in the mortgage industry. The right collaboration of technology can gain access to critical lending data and visually define the important data for executives to make data driven decisions. Lenders can transform lending data to a friend and create better business opportunities.