Crafting member-centric mortgage fulfillment for a large credit union bank | HCLTech

Crafting member-centric mortgage fulfillment for a large credit union

This success story explores the credit union's path from legacy to modern mortgage and the strategic partnership with HCLTech Lending Solutions that made it possible.
3 mins 50 seconds read
3 mins 50 seconds read

Our client is a prominent American-based financial cooperative organization that has been in operation since the late 1970s. With nearly $10B in assets under management (AUM) and a remarkable network that includes a robust internet strategy and 23 full-service branches for loan originations across 46 states in the US, they are a well-established entity in the financial sector.

The Challenge

Legacy to modern mortgage: Overcoming transition bottlenecks

In 2019, as our client made the strategic decision to transition from their older legacy system, Mortgage Bot, to the cutting-edge Blue Sage platform, they encountered several challenges. They were on the lookout for a partner who could not only facilitate a smooth transition but also bring valuable institutional knowledge of their operations to the table.

Initially, they relied on an off-the-shelf loan origination system provided by Blue Sage, with a few customizations. However, it quickly became evident that technology alone would not resolve the bottleneck they faced, necessitating the experience of a trusted partner. As the client's mortgage department grew because of the improved technology, there were difficulties scaling up to handle increased transaction volumes, which led to performance issues. They were also unable to focus on the new Line of Services (LOS) due to the pending pipeline in the old LOS.


The Objective

Architecting success with a member-centric mortgage fulfillment ecosystem

Driven by an unwavering commitment to elevating their mortgage fulfillment operations, the client joined hands with . Their primary objective was to deliver an unparalleled member experience and ensure swift processing of first mortgages and home equity loans. Our partnership aimed to implement a new loan origination system, execute workflows under stringent service level agreements (SLAs) and ensure scalability without compromising service levels or member satisfaction.


The Solution

The art of adaptation: Expertise and transition amidst chaos

In this case, technology alone couldn't provide the solution. The Blue Sage platform technology required expert implementation and fine-tuning. With the invaluable expertise our team brought to the project, a state-of-the-art loan management system interface was developed to streamline and expedite borrowers' journeys. We worked closely with our client to develop a transition plan specific to their needs. This included closing out the pipeline in the old LOS, allowing them to focus entirely on perfecting the new LOS. Their adaptability, along with HCLTech's knowledge, enabled a seamless transition, even during a period of heightened loan applications and external disruptions, including the pandemic and remote work.

  • We provided expertise in loan origination, risk assessment and regulatory compliance, enhancing our client's lending capabilities.
  • Our knowledge of market trends, interest rate fluctuation and underwriting practices provided an opportunity to optimize their mortgage offerings.
  • Solutions included streamlining application processes, leveraging advanced technology for efficient loan management and accessing a broader range of mortgage products, ultimately benefiting our client’s members and increasing revenue opportunities.
  • Leveraging a variable price model, we enabled our client to ramp up quickly to meet the demand and optimize performance.
  • We also helped roll out specific product lines that needed additional considerations and fine-tuning in the new LOS, like home equity lines of credit.

The Impact

Redefining excellence with a leap in efficiency and member engagement

Throughout the partnership, exceeded our client's productivity expectations, with underwriting and closing consistently surpassing key parameters and SLA targets for individual and group productivity. Less than a year after partnering with HCLTech Lending Solutions, our client achieved an exceptional ratio of loans closed versus applications received, setting a new industry benchmark. This achievement was particularly significant due to the increased application volume and the exponential surge in clearance rates, leading to heightened efficiency.

The result was not only in numbers but also in the enhanced engagement of borrowers who benefited from improved agent interactions, including the ability of the agents to acquire necessary documentation more efficiently. Employing a unit price variable model led to increased production and higher pull-through, effectively reducing the cost of production.

  • 75% Pull-through rate (application to closing) YTD. Up from ~50% prior to our partnership and an extraordinarily high achievement given the current interest rate environment
  • 1.5X Jump in monthly in-processing goal
  • 40% Decrease in production costs
  • 75% Decrease in escalations and active complaints