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End-to-end management of loan origination,underwriting
and closing for a US-based Mortgage Loan Company
Client Prole
The Client is a US-based Mortgage Loan Company, providing mortgage origination, processing, closing
and servicing for residential loan products.
Business Scenario
The mortgage market has always been cyclic and volatile, and the Client has faced a difcult landscape
in which to grow and succeed. Regardless of what direction the economy and mortgage rates appear
to move, mortgage origination volumes remain at their lowest point since 1997. Slow economic growth,
combined with sustained, higher unemployment levels will continue to limit renance and sales volumes
throughout the next 2 years.
While revenues for the industry as a whole have been declining, the Client has faced a smaller proportional
decline due to more limited competition.
In the global market, some temporary stabilization occurred, largely driven by events in the US, where
government initiatives to prop-up the housing market have played a major role in spurring home purchase
activities. However most loans positively impacted by these efforts have been processed and are no
longer in the renancing or home purchasing market.
Overall investment in housing and commercial facilities sector is weak due to perceived risks, notably from
the situation in global nancial markets, particularly the European debt crisis.
Performance Highlights:
Reduced overall cost of
loan origination by 25%
Reduced loan turn-around
time by 24%
Reduced reworked loans
from 2.04% to 0.09%
Increased efciency by 33%
Improved accuracy
rate to 95+%
Among its equivalent
competition, the Client ranks
second in overall satisfaction
(Source: J D Power)
Among its equivalent
competition, The Client
ranks Better than Most
in Customer Contact
(Source: J D Power)
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Competition
The Clients competition includes Citi Mortgage, Ally Bank, Bank of America Corporation, DHI Mortgage
Company and Wells Fargo Home Mortgage, Inc. The Client maintains a 1.2% market share in residential
lending and a 3.3% share in residential servicing.
Challenges Faced:
Cost of operation
Quality & Speed
of Processing
Low operational efciency
Customer Churn
Market Share - Residential Lenders Market Share - Residential Services
Bank of America 14.9% Wells Fargo & Company 26.2%
Wells Fargo & Company 13.0% Bank of America 20.4%
Chase 9.0% Chase 10.8%
CitiMortgage, Inc. 4.3% Ally Bank/Res cap (GMAC) 4.6%
Ally Bank/ResCap (GMAC) 2.8% Citi Mortgage Inc 4.5%
U.S. Bank Home Mortgage 1.6% U.S. Bank Home Mortgage 3.7%
CLIENT 1.2% CLIENT 3.3%
SunTrust Bank 1.2% Sun Trust Bank 2.0%
PNC Mortgage 1.0% Quicken Loans Inc 1.9%
MetLife Bank N.A. 0.8% Provident Funding Associates 1.8%
Regulatory Environment
HUD, FHA, the S.A.F.E. Act and other industry regulations have required significant adjustments to
mortgage and lending practices. The Client and the mortgage industry in general experience increased
regulation and scrutiny by various federal and state agencies, and managing increased costs of regulatory
compliance.
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Business/Operational Challenges
Denition of Challenges
Mortgage rates were frequently dropping as a result of Federal rate reductions, making it difcult for
the Client to predict refinance activity. Managing regulatory compliance combined with managing
the ebb and ow of loan volumes created a challenging situation. Furthermore, the Clients mortgage
process was also in need of optimization:
Each component of loan processing was operating as a stand-alone process. This led to difcult
transitions between components, as well as redundant activities.
Multiple personnel were performing the same processes, resulting in an increased cycle time
per loan. Increased cycle times were impacting the total number of loans the Client was able to
service or close.
Difculties occurred ramping due to the mortgage industrys unexpected volume uctuations.
Lower CSAT scores were reported during peak periods, and caused customer churn.
Lower throughput was directly impacting revenue.
Partner Selection Criteria
Based on these challenges, the Client needed an unconventional partner. While traditional back
office vendors could deploy the technology platform and resources needed to perform mortgage
processing, they lacked the customer management capabilities and experience needed to mitigate
customer churn, and address volume uctuations.
A partner for this engagement needed to demonstrate the following:
Ramping ability for expected and unexpected volume uctuations
CSAT management and customer experience
Customized solution with technology integration into PHHs multiple processes
Process re-engineering integrated into solution
Established global presence for a geographically optimized solution
Organizational stability
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(Partner Selection Criteria continued)
Sutherland was able to demonstrate exceptional depth and achievement in customer management
across a broad range of services and verticals, including Technology, Retail, Banking and Financial
Services. Most importantly, Sutherland demonstrated what it has done for all clients an uncommon
willingness to bring the specic solution they needed, rather than one which was off the shelf. After an
assessment, the Client was condent with Sutherlands ability to deliver, even without specic domain
expertise in Mortgage processing.
Sutherland Solution
The engagement involves the following discrete processes:
Document Review Center
Sutherland handles a complete loan file on the back-end, from the time the customer sends in
a signed application package till the mortgage is approved for credit and is ready to be sent to
closing.
Sutherland consultants contact third parties such as employers, banks or insurance companies
to obtain various documents like verications, asset/payoff statements or hazard/title insurance
policies that are critical to the loan.
Review all credit, income, asset and property related documentation obtained from third parties or
from the customer in order to clear conditions required for the loan approval process.
Pricing (Secondary Marketing)
Manage requests from Client Loan Processors to edit/alter information in the loan origination system
relating to the interest rates and discount points based on certain business decisions or special
conditions being offered to the customer.
Appraisal Services and Project Underwriting
Follow-up with property appraisers on appraisals that are due in order to complete the transaction.
Contact Home Owners Associations to validate that a project designated to be a condominium
meets the guidelines for loan approval.
Wholesale and Correspondent Lending
Review of Truth in Lending documents and preparation of loan documents for closing
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(Sutherland Solution continued)
Loan Servicing
Multi-channel customer and technical support for customers requiring access to their existing loans
through the Clients website.
Technology Reporting
High-end software development services for the Clients operational reporting needs using the
Hyperion suite of products.
Knowledge Capture & Transition Process
Sutherland deployed Six Sigma resources and domain experts to design the updated version of
each internal client process. The end result was a hybrid model which combined Sutherlands service
excellent and process optimization expertise with the Clients established mortgage processing
methodology and procedures.
Hiring & Training Process
The Client had very specific hiring requirements for the on-shore team which included years of
experience and education levels. The deployed service delivery leadership team consisted of
individuals with an average of 17 years experience in the mortgage industry and was therefore readily
able identify, recruit and train appropriately proled team managers and consultants.
Technology Enablement
Sutherlands Global Software Infrastructure (GSI) team developed advanced middleware applications
for this engagement. These applications were pivotal to the overall success, since they allowed the
Client to continue using their platforms but enabled Sutherland to use its proprietary tools and
methodologies.
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Results/Benets Delivered
Reduced overall cost of loan origination by 25%
Reduced loan turn-around time by 24%
Reduced reworked loans from 2.04% to 0.09%
Increased efciency by 33%
Improved accuracy rate to 95+%
Reduced cost of recruitment and training
Full Business Continuity through a geographically distributed service delivery model
Exceeded information security requirements in a highly regulated business environment
Increased revenue opportunities through scalable operations enabling the Client to meet not
only seasonal peaks, but volume spikes caused by market related factors like re-finance rallies
or incentives.
Among its equivalent competition, the Client ranks second in overall satisfaction
Customer Satisfaction Score
Chase 760
CLIENT 747
Wells Fargo & Company 741
GMAC Mortgage 729
CitiMortgage, Inc. 725
Bank of America 710
J.D. Power and Associates 2011 U.S. Primary Mortgage Origination Satisfaction Study http://www.jdpower.com/news/pressrelease.aspx?ID=2011196
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About Sutherland Global Services
Established in 1986, Sutherland Global Services is a global BPO services enterprise providing
integrated Platform-based and Analytics enabled business-cycle support solutions for major
Industry Verticals and global industry leaders. Sutherland collaborates with clients to help them
excel in their industry while maximizing their customers lifetime value.
Sutherland is Certied as a Minority Business Enterprise by NMSDC

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To learn more about
Sutherland Global Services,
please contact us:
Toll-Free:
+1 800-388-4557 x2799
E-mail:
sales@sutherlandglobal.com
Website:
www.sutherlandglobal.com
2012 Sutherland Global Services CS-BANKINGSVSMORT-061112