Mortgage Operations Improvement

Large Credit Card Provider


A large credit card provider operated a small consumer bank for the purpose of issuing consumer mortgages. Due to the inefficiency in the mortgage processing area, the bank had not provided sufficient bottom line income to the institution in spite of the steady growth in mortgage volume. LoBue was asked to evaluate the mortgage processing operation and to recommend programs to reduce related expenses.

  • Analyze all processes and eliminated redundant tasks. It was also found that operating staff did not follow uniform procedures due to lack of training and developed “bad habits” over time. Procedures were redesigned and a new training program was instituted.
  • Due to internal inefficiencies, staff worked extensive overtime hours, which contributed to the service level failures. Based on the new procedures, capacity plans were recommended for all units.
  • The credit decision process was redesigned to improve the decision making timeline from 3 weeks to 4 days, eliminating a substantial backlog.
  • Recommended that the internal contact center be outsourced and combined with the parent Credit Card company contact center.
  • Installation of a comprehensive management reporting process measuring all transaction volumes, process quality and timeliness issues.

  • All processes were reviewed and key processes rationalized, resulting in significant expense savings of approximately 14% of the total annual operating cost.
  • Service level was significantly improved by the shortening of credit cycle; part of the solution included auto-decisioning of certain client applications.
  • An ongoing training and staff review program was installed.
  • A rational model was instituted balancing revenue growth with appropriate expense growth.