Eliminating Loan Origination Defects

The lending environment inherited after the 2008 credit crisis has significantly reduced once-flourishing loan volumes and profitability. The existing volumes must now be put through an even more complicated and regulated process with reduced flexibility on credit approvals. Heavy regulation was an inevitable response to the numerous loans that have been and will continue to be repurchased due to the lender’s quality control errors. Existing origination processes are still full of hidden land mines continuing to explode when investors scrutinize loans with a fine-tooth comb. These explosions are the net result of poor quality control capabilities that continue to haunt lenders.

In addition to the bottom-line impact, lenders are now faced with significant operational safeguards to eliminate the errors and sins of the past. As institutions race to increase their share of lending, they are burdened with these new requirements that increase costs and lengthen timelines. The credit crisis has also produced a demand for an unprecedented level of transparency.

All of these factors are conspiring to create a fundamental need for a transformational shift in how lenders resolve operational quality control challenges, increase transparency and quickly implement changes to capture a limited market.