Automating Quality Control reduces risk, increases customer satisfaction

Fremont Bank

When Fremont Bank – one of the oldest and largest independently owned banks in the San Francisco Bay area – wanted to automate quality control processes, the organization turned to SwiftView, Inc. and its SwiftSend LoanDocs(r) Web-based document delivery solution. SwiftSend's Quality Control Plus feature set provided Fremont Bank with quality assurance options for internal review of documents before electronically sending to final recipients. This enabled Fremont to cut QC processing time by 20-30 percent...and helped managers identify areas that needed improvement.

The Challenge

Intense competition in the mortgage industry has driven lenders to expedite the loan process in order to meet high borrower expectations, as well as increase volume and revenues. However, when any process is accelerated, the potential for error proportionately increases. Fremont, California-based Fremont Bank recognized that errors in loan documents could potentially lead to regulatory violations, monetary losses and unhappy customers. The bank sought to avoid these risks by developing an internal quality control (QC) process to ensure the accuracy and consistency of mortgage documents.

Initially, Fremont's QC process was manual: Document drawers would manually deliver closing packages to a QC manager for review. If a package had errors, it was sent back to the document drawer -- who would correct the package and send it back for a second review. This workflow proved inefficient, considering Fremont was processing up to 300 loans each day and having to correct an average of 10 percent of all document sets. Although reviewers were able to identify most errors before documents landed on the closing table, the delays caused by the manual system were putting Fremont at risk of missing rate lock deadlines, slowing down the process, and possibly decreasing customer satisfaction.

According to Tami Fuller, Manager of System Administration for Fremont Bank, "Our primary goals were to reduce risk and increase volume potential by automating our QC process. We needed a solution that provided flexible administration tools that allowed us to establish our own set of controls."

The Solution

SwiftSend's Quality Control Plus was the perfect solution to Fremont's problem. The feature set provides options for internal review of documents before electronically sending to final recipients, thus reducing document errors and redraws. Fremont was able to establish its own review policies for each document creator and reviewer. Drawers electronically send documents to a manager's Pending Box, which holds the documents for review, and receive specific, immediate feedback from managers electronically if their documents are rejected for errors. This process increases customer satisfaction because the documents reach the closing table more quickly and error-free so borrowers are not left waiting. The real-time communication between creator and reviewer reduces redraw costs and time, thus saving Fremont money on each incorrect document set.

The Results

Fremont rolled out Quality Control Plus to internal signoff agents in its residential mortgage branch offices. The service has improved efficiency to such a great extent that the company is hoping to extend the service to notaries, title companies and others who handle its loan closings.

"In less than two months, we were able to cut QC processing time by 20-30 percent, thanks to SwiftSend's Quality Control Plus," said Fuller. "Previously, we had to manually sort and ship closing packages. Now our drawers simply click a button to send the electronic package to signing agents in seconds. We are moving more files more quickly and saving money in the process."

"Another important benefit of QC Plus is the Rejection Report. This enables our QC managers to easily view errors as well as monitor and measure employee productivity. They can identify and work with employees who make repeated errors and deal with potential security issues like password sharing."

"Before SwiftSend, we didn't have this kind of control."

Fremont Bank saw immediate, measurable benefits after implementing Quality Control Plus. The flexible administration and reporting features helped to enhance the quality of the bank's services while reducing risk and improving the borrowing experience for its customers.

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