COMMERCIAL MORTGAGE CASE STUDY I
This case study clearly illustrates how a mortgage company
made the decision to outsource their business processes
to EMR and the benefits they have been reaping thereafter.
Being a full service mortgage provider with independent
servicing business and wide ranging financing options,
the client wanted to re-position itself to take advantage
of the booming commercial mortgage market.
EMR performs analysis and due diligence on loan sizing,
financial statements and underwriting for this customer.
Client: A top 10 global commercial mortgage
company with a $50 billion servicing portfolio
Challenges: On a macro level, markets
were becoming more competitive and efficiency driven.
Processes set in place few years back, had not been reviewed
to cope with the real estate boom gripping the US markets.
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Too much time was
being spent coping with non-core activities
Variable and inconsistent volume flows leading to
staffing challenges
Critical turnaround time leading to lost business
opportunities
Meeting statutory deadlines to avoid penalties
Better portfolio risk management
Absence of quality metrics for benchmarking
Reduce cost to stay competitive
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Processes:
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Analysis and due diligence
on loan portfolios and real estate assets
Core elements of the process outsourced include:
- Financial statement analysis: Classification and
analysis of borrower financial statements for loans
from various capital sources
- Loan sizing: Preliminary due diligence on loan
request packages to arrive at the loan terms
- Underwriting: Complete loan and property due diligence/underwriting
services, including financial, accounting, property
and market |
Benefits:
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Cost savings of over
40%
Quality metrics
- Client agreed SLA – 95%
- EMR delivers – 98%
Cross-trained talent pool offers scalability to
manage fluctuating volumes of work
Turnaround time reduced by 60% resulting in improved
service and enhanced end customer satisfaction (e.g.;
loan sizing completed overnight)
Process re-engineering improved efficiency by eliminating
redundant processes
Improved portfolio risk management by increasing
coverage of due diligence of loans from 40% to 60%
Paperless environment to ensure client’s data
security |
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