Efficiency Challenge Proposal
Published on Nov 18, 2015
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MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
EFFICIENCY CHALLENGE PROPOSAL
BY: TONYA PLUMMER, CORPORATE CLOSER, EFFICIENCY CAPTAIN: JENNIFER HALL
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GREEN LIGHT CLOSING CHECKLIST
A ROADMAP FOR EFFICIENT ROUTE, MILEAGE, MILESTONE MOVEMENT
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GREEN LIGHT CLOSING CHECKLIST
- Loan is cleared to close. Approved & Ready for Docs
- Sales First Formula must be applied.
- Closers can be sales minded, however...
- Doing it Right & Fast depends on quality of loan prep
- Checklist needed to set clear standards & expectations
* Closing the gap between underwriting & closing
* Loan approval (risk assessment) vs HUD approval (exact/compliant).
* Green lights through docs-funding-shipping-purchasing.
* Eliminate delays and tickets (suspense)
* Loan approval (risk assessment) vs HUD approval (exact/compliant).
* Green lights through docs-funding-shipping-purchasing.
* Eliminate delays and tickets (suspense)
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CLOSING QUEUE TRAFFIC
- Funnel Effect-16 underwriters, 6 closers
- Closing is Doc Prep, HUD, and QC check
- Decrease Yellow Light Warnings
- Eliminate Red Light Stops
- Loan Re-Construction-Expect Delays
* Explain how loans enter the queue
* Describe current Closing Process
* Driving faster is not right (dangerous)
* Adding lanes/drivers is not right (expensive)
* Yellow lights: Wrong/incomplete contacts, Ins binders, prelims, excessive PTF, incomplete disclosure history, missing initial disclosures
* Red lights: higher than approved taxes or insurance, bad GFE/TIL, new debt on refresh credit
* Loan reconstruction-old playoffs, unaccounted for proration credits
* Again, doing it right is dependent on quality of loan submission. It is difficult to guarantee speed when no standard of submission quality exists and remains an unknown
* Describe current Closing Process
* Driving faster is not right (dangerous)
* Adding lanes/drivers is not right (expensive)
* Yellow lights: Wrong/incomplete contacts, Ins binders, prelims, excessive PTF, incomplete disclosure history, missing initial disclosures
* Red lights: higher than approved taxes or insurance, bad GFE/TIL, new debt on refresh credit
* Loan reconstruction-old playoffs, unaccounted for proration credits
* Again, doing it right is dependent on quality of loan submission. It is difficult to guarantee speed when no standard of submission quality exists and remains an unknown
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INEFFICIENCY IS NOT
SALES FIRST
Sales First Formula of
Doing it Right + Doing it Fast x For the best Customer Experience
is hindered under current structure
We need more offense, less defense.
More producers, less suspense.
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QUANTIFY TIME
EXPECTED IMPROVEMENT: TURN TIME CUT FROM 48 TO 24 HOURS
* Quantify time lost
* Quantify $ lost
* Quantify $ lost
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QUANTIFY MONEY
EXPECTED SAVINGS: $237,250 (CONSERVATIVELY)
SUSPENSE
Driving faster means disaster
75% of November loans suspended
3 suspense salaries $120,000
Branches delayed payment until purchase complete
Costs time, $, morale, reputation.
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BENEFITS OF ONE CHECKLIST
- Sets clear standards for branches to begin with the end in mind
- Empowers processors to perform well and better communicate with their LO
- Becomes a training tool for branches, improves corporate experience
- Increases efficiency in Underwriting and Closing
- Decreases Suspense, branches get paid faster
HOW DOES IT WORK?
- Processor learns loan requirements
- Consults checklist for clarity throughout loan process
- Underwriter knows closing needs, approves/conditions accordingly
- Processor completes & images at Docs Ordered milestone
- Closer uses as a tool in QC if yellow/red lights/roadblocks arise
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Potential Roadblocks
Clarity of Standards.
Solution: Meet with U/W, Ops leads
Branch Frustration.
Solution: No new requirements, just reformatted timing & structure
Ineffective Training
Solution: Plan well focused U/W, Closing, Corporate Training for branches prior to launch.
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RESOURCE & TRAINING REQUIREMENTS
- IT to imbed checklist in Encompass Tasks. * Interim options available
- U/W to review, support, enforce checklist when conditioning
- Corporate Training for branches to understand & utilize checklist
- Closers to understand and utilize checklist in serving closings
- OPS management to introduce & formally launch when training complete
IMPLEMENTATION TIMEFRAME
A COLLABORATIVE EFFORT
EFFICIENCY EXCELLENCE
TOOLS TO TRANSFORM INDIVIDUAL HABIT INTO COLLECTIVE EXCELLENCE
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