Loan Servicing Process Design 2017-03-28T14:54:13+00:00

Project Description

Project Description

Midtown Consulting Group led several business process transformation initiatives to ensure that our client obtained both operational performance improvements (e.g. – cost reduction and increased throughput) and maintained or obtained compliance with US Treasury Supplemental Directives requiring them to meet pre-foreclosure certification standards.

Business Case

Large banking institutions are mandated under the US Treasury to perform borrower contact, legal notification and provide loan modification alternatives designed to ensure that the bank exhausts all pre-foreclosure alternatives prior to implementing adverse action. These regulations required the development of solutions for foreclosure business operations, policies, and procedures, supporting technology, internal governance and regulatory certification. At the time of project origination, the client had accumulated a significant volume of foreclosed loan ‘backlog.’ This backlog represented ‘stale’ foreclosed loans, which needed to further proceed through the foreclosure process.

Project Objectives

Given the backlog at the time of project start, the goal of the project was to reduce the number of foreclosure loans while also improving bank processes to achieve increase efficiency. The project required process transformation expertise and initiative management to design, develop and implement technology solutions to monitor hundreds of loan variables, classify loans, monitor compliance progress and certify loans for adverse action.

Services Provided

Midtown Consulting Group was responsible for managing and executing on the following scope:

  1. Project charter including objectives, schedule, cost and recommended technology solutions.
  2. Comprehensive business requirements including data sourcing, business rule logic and diverse reporting.
  3. Data validation and data provisioning optimization.
  4. Development, testing, implementation and stabilization.