SLK Global Solutions, a provider of digital platforms and business process management solutions to the banking, mortgage and financial services industry, has enabled a leading U.S. bank that originates residential mortgages to improve its underwriting efficiency and speed up closings by 11 days through its pre-underwriting support solution LoanAccel. SLK detailed the findings in a recent case study.
The bank approached SLK seeking to reduce its fulfilment cycle time. Before adopting the LoanAccel solution, the bank had no real-time status updates available to loan officers or real estate agents. SLK developed an automated checklist for files being submitted to underwriting that verified the 1003 application and loan origination system (LOS) data, which eliminated hard stops and conditional approval delays. It also implemented three-tiered application processing to address missing information.
Altogether, SLK enabled the bank to reduce the average amount of underwriting touches to two and reduce the average time between application and funding by 11 days. It also helped the bank achieve an average time from application and clear-to-close of just 16 days. SLK executed its strategy by using parallel processing to reduce cycle time, providing real-time feedback on deficiencies by region and by mortgage loan originator, and having its specialist team follow up.
“During this historic origination wave, we see that the biggest bottlenecks for retail lenders are in pre-underwriting and setup,” SLK Global Solutions Senior Vice President – Mortgage Business Leader Nate Johnson explained. “LoanAccel provides our clients high-touch communications between our SLK loan specialists and everyone involved in the transaction. We provide our clients with reporting, emails and notifications to ensure the loan officers, processors, underwriters and ultimately the borrowers are aligned with the status of the loan. If originators want to reduce cycle times and allow their underwriters to be more efficient, this is how to do it.”