Improved Processing Network

Sub-Prime Lender

Situation

The sub-prime lending division of a major commercial bank was experiencing significant loan production volume growth. This growth led to an operations network of five (5) loan production centers defined by inconsistent processes, job functions and organizational structures. Additionally, the lack of a formal management process contributed to poor decision-making in staffing and process management.

Recommendations

Develop a National Operations business model consisting of standardized processes, position descriptions, and organizational structure for all production centers.
Install a capacity management and resource utilization methodology to enable effective staff scheduling and planning.
Establish a Comprehensive Management Process, providing managers with critical decision-making information supporting the business strategy.

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Results

The following programs were implemented for the National Operations Group:

Standardized Process flows for all business channels (Retail, Wholesale & Correspondent).
Standard Position Descriptions.
Standard Organization Structure.
Skills Assessment and Training Program based on new job functions.
Service Level Agreements established for internal and external services.
Self Monitoring Program developed to address compliance and quality objectives.
Management Process defining critical success factors supporting the business goals of productivity, service delivery, profitability and quality.

Additionally, the following quantitative results were realized:

A 34% productivity improvement.
$3,032,400 Annualized Salary Expense reduction.
A 20% reduction in Cost per Loan.
A 100% increase in Funded Loans/FTE
The program self-funded in less than six (6) months.

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