TREVOSE, Pa., Sept. 25, 2018 /PRNewswire/ -- LoanLogics, a recognized leader in loan quality (QC) technology for mortgage manufacturing and loan acquisition, has helped national lender Summit Funding reduce its quality control costs by 40 percent. By switching from an outside QC vendor to LoanLogics IDEA™ for data extraction and the LoanHD® loan quality management platform for loan reviews, Summit Funding has seen a reduction in the time needed for loan reviews and has cut QC costs considerably.
Summit Funding, a national, purchase-focused lender, began using LoanLogics' technology in 2017. Prior to that, the company had been using a third party provider for post-close quality control. But Summit was looking for more robust, granular reporting, as well as a broader approach to QC, rather than simply a focus on compliance.
Summit evaluated more than a dozen QC technology providers, according to Grant Petersen, Summit Funding's director of quality control. In many of the vendors reviewed, Petersen found embedded functions, such as credit and compliance, were lacking. Also, some vendors' software would have required Summit to hire additional staff because data extraction automation was not included.
After a thorough review of the QC technology providers, Summit settled on LoanLogics. "LoanLogics technology was by far superior," Petersen said. "LoanLogics IDEA and the LoanHD loan quality management platform offered the most in-depth data extraction and loan review capabilities. Their technology simply makes our quality control process more granular and within our control."
LoanLogics IDEA™ (Intelligent Data Extraction and Automation) accelerates the indexing of loan files and transforms digital images, as well as scanned documents, into searchable, comparable data elements. The LoanHD® platform displays these data elements as LoanFacts™, enabling 100% data comparison of extracted data and loan origination system data to provide full transparency as part of the mortgage loan review process.
Summit's move from an outsourced QC function to a technology-enabled internal operation resulted in a 40 percent decrease in costs and increased scalable productivity, Petersen said. And, Summit only needed to add one analyst to support the QC team's expanded post-close reviews, as well as its increased prefunding and servicing QC capabilities.
"LoanLogics' technology enables a 100 percent comparison of loan file data across sources, identifies any missing documents and runs automated business rules so analysts can focus on exceptions," Petersen said. "The system configurability also enables the QC team to modify and add audit tests and clarifying remarks for findings. We were able to reduce our active tests by 20% because the flexibility of the system allows productivity improvement without losing the comprehensiveness we desire."
In addition, Summit does not need to use multiple systems for the procurement of specialized services related to TRID compliance and credit. "That functionality and the integrations to third-party providers are already built into the LoanLogics platform," Petersen said.
Since implementing the LoanLogics' technology, Summit has been able to provide greater insights to a broader group of departments, including compliance and post-closing. "Now, our monthly QC and risk meetings are focused on discussing critical findings and drilling down into their root cause. We didn't have that level of detail prior to LoanLogics," Petersen said. "Today, we have more control over our QC function, more flexibility to scale and the ability to change practices at a moment's notice."
To access the case study, please visit: http://loanlogics.com/cs-summit-funding.html.
LoanLogics was founded in 2005 to improve the transparency and accuracy of the mortgage process and the quality of loans. Its regtech capabilities help dozens of residential mortgage lenders, servicers, insurers and investors validate compliance, increase profitability and manage risk during the manufacture, sale and servicing of loan assets. LoanLogics is listed on Deloitte's 2017 Technology Fast 500™ and HousingWire's 2018 HW TECH100, and it has received multiple awards for its corporate culture, executive leadership and women executives. To learn more, visit http://www.loanlogics.com.
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